Capitol One Credit Card

Capital One Financial Corp (COF) is one of the biggest credit card providers in the U.S. They are a bank holding company that was founded in 1988 in Richmond, Virginia. They are now headquartered in McLean, Virginia. The company has total assets of $165.91 billion and posts annual revenue of around $15 billion. Capital One employs 31,800 people and besides credit cards, they issue home loans, auto loans, and run bank branches.

The founders of COF are Richard Fairbank and Nigel Morris, who purchased Hibernia National Bank in 2005 and the next year purchased North Fork Bancorporation. Later, Capital One would purchase Chevy Chase bank for a reported $520 million. Although the company released its mortgage platform in 2007, the company still received $3.56 billion from the Emergency Economic Stabilization Act in 2008.

Beginning in 1996, Capital One began international operations by establishing an office in Toronto, Ontario, Canada. Later, the company also opened offices in the U.K., France, Spain, and South Africa.

Capitol One credit cards are a mainstay of the company, and this is what allowed them to rise to the top of their market. Unlike other financial institutions, Capital One started operations dedicated to consumer lending. This was seen as extremely risky because the consumer lending market fluctuates widely and most banks need another source of revenue during down times. Most of the company’s competition who tried to remain a “monoline” bank has failed along the way.

Capitol One credit card success came largely due to an information-based strategy. They used customer data and information to tailor products and direct-mail advertising to potential customers. By 1998, the company had developed the largest customer database in the industry. They remain today, the fourth-largest customer of the U.S. Postal Service. The issuing of the subprime Capitol One credit card helped the company to grow tremendously.

Today, a Capitol One credit card is available for people in four tiers of credit status: excellent, good, average, and limited history. Some of the best Capital One credit cards are as follows:

• Capital One Platinum Prestige – This card is for those with excellent credit. It has a 0% introductory APR that goes to 11.9% and remains variable based on the market. There is no annual fee and transfers incur a 3% fee.

• Capital One Venture Rewards – This card is also for those with excellent credit. It allows the owner to earn double airline miles with every purchase. If the holder spends $1000 in the first three months, they get a 10,000 mile bonus. APR is 13.9% variable, and there is an annual fee of $59.

• Capital One No Hassle Cash Rewards – This card is for those with average credit. It gives 2% back on purchases of gasoline and at major supermarket chains. All other purchases give 1% cash back. The card has an introductory APR of 0% that goes to a 19.8% variable. The annual fee is $39.

• Capital One Student Rewards – The Student Rewards card is specially designed for those with a limited credit history. It offers 2% cash back on purchases from restaurants, for textbooks, or when paying a cell phone bill. All other purchases give 1% cash back. The APR is 24.9% variable, and there is no annual fee.