With the end of the holiday shopping bender and consumers feeling their massive buying binge hangovers, credit card companies are likely to capitalize on those who are currently cash strapped.
So right on cue, Capital One sends a credit card offer arriving on December 28 to rescue those who don’t have money for their New Year’s Eve party (or maybe a real emergency). This offer is for their Venture card, which features 2 miles per $1 spent on every purchase AND 50,000 bonus miles, if you spend $3,000 in the first three months…what?! That’s more disposable income than most families have in a year, let alone three months. Don’t forget the $59 annual fee.
But we’re only getting started with the dirty details.
The Annual Percentage Rate (APR) is 13.9% and is based on the Prime Rate, which means it’s going to go up. The APR for cash advances is 24.9%, again based on the Prime Rate. These are not unheard of numbers, but here’s the kicker…
If ONE payment is missed and/or ONE late payment is made, the APR will jump up to 29.4% INDEFINITELY! Additionally, a $35 late fee will be assessed AND the miles earned during the period of the late fee will be forfeited. Ouch.
So the next time you see Alec Baldwin imploring that these are “miles you can actually use”, remember Capital One is not actually interested in getting you to your dream destination, but instead intends to steal all your money via their high interest rates and fees, so you won’t actually be able to afford the vacation once you arrive. But that’s what the Venture card is for, right?
What’s in your wallet?…hopefully NOT the Capital One Venture card.