A 9.9% Platinum Miles Reward Card for only $19? It's Capital One!
Written: Mar 05 '01 (Updated Mar 11 '01)
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Pros: Low APR (9.9%) and annual fee ($19)compared to other miles rewards cards.
Cons: Customer service may not always be reliable.
The Bottom Line: Capital One is not just subprime anymore. It's time to include Cap One in your credit card comparisons. MilesOne may be just the miles reward card you're looking for.
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| netKat's Full Review: MilesOne Platinum (Capital One) |
If you're looking for a miles reward card with both a reasonable APR (9.9%) and a low annual fee ($19), your search may be over. Check out the Capital One MilesOne Platinum MasterCard.
Cap One has a Platinum Miles Card?
Long known as a specialist in the sub-prime market, Cap One is fast emerging as one of the top ten credit card issuers in the US and branching out to include a more credit worthy segment of the population. They're doing their best to attract lower risk new accounts, and they're succeeding admirably with their low APRs and high rewards.
What are the Rates and Fees?
As with most miles cards, there is an annual fee on the card. But this one is only $19 per year. The average fee for a gold or platinum miles card is up around $60.
The annual percentage rate (APR) on this card is a fixed rate of 9.9%. This is very competitive and one of the lower rates available these days on any type of credit card. The average APR on other miles cards is upwards of 18%.
Since there is a grace period of at least 25 days, you can pay your bill in full each month and not pay any finance charges, yet still get the miles.
There is no advertised promotional rate on the card, however, if you call Capital One to apply, they may offer you 7.9% for the life of your balance transfer if you apply for the account. It doesn't hurt to ask. ;)
Keep in mind that Cap One, like most other credit card companies, has a risk or penalty pricing clause in their cardholder agreement. What this means to consumers is that if you pay late, or go over the limit, Cap One is allowed to raise your interest rate. Even if you pay late on credit cards other than your Cap One card, or you get derogatory marks on your credit reports, Cap One is allowed to raise your interest rate. The moral is, if you want to enjoy the best rates, keep all your credit in good shape.
Beware of cash advances or access checks. The APR on these is 19.8%
Other fees are as follows:
- Late fee: $25
- Over the limit fee: $25
- Cash advance fee: 2.5% of the amount of the cash advance, minimum fee is $2.50
How do you Earn Miles?
You earn 1 mile for every $1 in net purchase amounts. You do not earn miles on purchases that are refunded, fees, balance transfers, convenience checks, or cash advances. You do not need to carry a balance to get the miles.
There is one exception about earning miles on balance transfers. You can earn $1 for every $1 transferred to this account from a non-Capital One account for a maximum award of 5,000 miles. After that, there are no rewards on balance transfers.
What are the Rules about the Miles?
• Your account is required to be in good standing and open in order to redeem miles. So, if you're thinking of closing this account, redeem your miles first. Don't pay late or go over the limit on the account or your account may no longer be considered "in good standing".
• Miles can be used for tickets for any major airline, you are not limited to a certain carrier.
• Miles expire in 5 years at the end of the quarter in which they are earned.
• You can earn a maximum of 10,000 miles per month.
• You must book your flight 21 days in advance and it must include a one Saturday overnight stay. You cannot have layovers exceeding 4 hours unless it is necessary to make a direct connection.
• There are no black out periods or seat restrictions.
• You cannot get a refund or change your tickets.
How many Miles does it take to get a Free Ticket?
Well, this is presented in a bit of a tricky way by Cap One. They advertise that you can get a free ticket with 18,000 miles, less than any other miles program. This is true, but that 18,000 will only get you a ticket within one "zone". The US is divided up into 3 zones: west, middle, and east. If you want to break free of your zone and fly anywhere in the contiguous US it will actually cost you 25,000 miles.
Here is the cost of some other popular destinations:
- Mexico/Caribbean: 35,000
- Alaska/Hawaii: 40,000
- Europe: 50,000
- Africa/Middle East: 80,000
- Around the World: 150,000
How do the Miles One Rewards compare to other Miles Reward Card Programs?
Well, as an overview, most (not all) miles programs require in the vicinity of 25,000 miles for a round trip ticket within the contiguous US. Many cards are limited to a certain airline. Most other cards have black out dates. Many other cards have lower maximums on the allowable miles earned per year and shorter expiration dates on those miles. Almost all the other cards have significantly higher APRs and annual fees.
It's definitely worth doing your own personal comparisons based on your estimated annual usage and if you have preferred destinations or airlines to get the miles program that will work the best in your own lifestyle.
Are there any other benefits on the Card?
Yes.
• Travel Insurance
The card has common carrier accident insurance of up to $100,000. This is a rather low amount of coverage for a platinum card. Most other cards are $500,000 to $1,000,000. The insurance is automatic as long as you charge the full purchase price of your ticket on the card.
• Purchase Protection
Be sure to save your receipt, because if your purchase is stolen or broken within the first 30 days you may be covered for up to $1,000 per occurrence. Additionally, when you charge an item on your card, you may be entitled to double manufacturers warranty for up to an additional year.
• Year End Summary
This is very useful, especially if you are using the card for business expenses. Your charges are broken out into individual categories (such as restaurants, department stores, and travel) for better record keeping and tax time convenience.
• MasterCard Emergency Services
MasterCard provides a full compliment of emergency services including emergency card replacement at home and abroad.
• Supplemental Rental Auto Insurance
Designed to save you from that extra charge the auto rental company tries to tack on your bill. As long as you pay for the complete cost of your rental car using the card, you are covered for up to $50,000.
How is the Customer Service?
Cap One does not have the greatest reputation for service. They are a fast growing company and have been known to stumble in this area on occasion, especially outside of their secured card niche. I have not personally experienced bad service with this company, nor has my dentist who also uses this card. He runs the bulk of his office charges through his Miles One card and takes his family on vacations with his rewards.
The representatives I have spoken with have all been courteous and professional. They tend not to know all the specific answers to my questions and sometimes try to answer as best they can in generalities. When pressed for more exact information, I end up on hold listening to classical music for a while, but they usually manage to come back with most of my requested information. If it's a very important question, I might call back and ask someone else for the same information just to confirm it.
Cap One has 24-hour customer service and a fairly comprehensive web site that will answer many account questions. Additionally, the intuitive and clearly designed website can be used to get specific account information, as well as to pay your bill online.
In Conclusion
The MilesOne platinum card has a great APR and lower fees than other miles rewards credit card programs. Because of Cap One's reputation for catering to the subprime market, those with good credit may have tended to overlook this bank in the past. It's time to include Cap One in your credit card comparisons... MilesOne may be just the card you're looking for.
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• Need a Secured Credit Card? Go with the Pro: Capital One
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Recommended:
Yes
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netKat
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Member: Kat
Location: Maryland
Reviews written: 166
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About Me:
Analytically inclined mom, bank officer, freelance writer, and internet addict.
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