A lot of credit card holders want their cards to work for them, so they opt for one of the many rewards cards available on the market. Capital One has made it even more difficult to choose among rewards cards with the introduction of its new Quicksilver Card that tries to simplify the way cardholders can earn cash back rewards.
Capital One, the fifth largest credit card issuer in the U.S. by purchase volume according to The Nilson Report, already offers a number of rewards cards, but the company says this Quicksilver card takes away many of the restrictions to rewards that other cards impose. The card offers 1.5 percent cash back on every purchase, with no restrictions or spending caps on different categories. Cardholders also don't need to sign up for particular spending categories throughout the year in order to take advantage of the cash back rewards.
The card also offers an opening bonus to qualified new cardholders who have excellent credit. These people can earn a $100 bonus if they spend $500 on the card within the first three months of opening the account.
"A flat rate of 1.5 percent earn rate on all purchases from this new Quicksilver card is a very compelling value proposition," said Ben Woolsey, director of consumer research at creditcards.com, in a statement. "Combined with no category sign-up requirements and no foreign exchange fees, this should make Quicksilver among the most straightforward and best cash back card options for consumers."
Capital One designed this card in response to consumers' frustration with other rewards cards. In an online survey about rewards restrictions that was conducted in December 2012, over half of consumers who had a cash rewards credit card responded that having to constantly activate their card every quarter in order to earn bonus cash rewards on specific categories would be frustrating.
Some credit card companies, such as Discover, do have this process, where every quarter, certain spending categories, such as restaurants or home repair, earn bonus cash back rewards. However, the bonus amount is contingent on the cardholder registering their card for the promotion every quarter.
"When we talk with consumers, we hear over and over how dissatisfied they are with the complex structure of their cash rewards cards," said Mike Wassmer, executive vice president of US Card at Capital One, in a statement. "What we've found is that people want a card that offers rich cash back rewards without having to keep up with where they spend and doesn't limit how much cash back they earn."
The Quicksilver card also has no annual fee, and because it is a Visa Signature card, it offers additional benefits, including a concierge service, special access to events, shopping discounts, $0 fraud liability, auto roadside assistance and rental insurance, travel perks and travel accident insurance, and an extended warranty program.
This particular card is meant for those consumers that Capital One has deemed to have excellent credit, meaning they have never declared bankruptcy, have never defaulted on a loan, have not made payments over 60 days past due for any credit card, medical bill or loan in the last year and have had a loan or credit card with a credit limit over $5,000 for at least three years.
Those with average credit can qualify for Capital One's QuicksilverOne Cash Rewards card, which is a MasterCard Platinum card. It has an annual fee of $39. It also doesn't include the one-time bonus cash back offer. Quicksilver One's zero percent introductory APR ends in June 2014, rather than September, and it has a higher purchase APR. The card includes MasterCard Platinum benefits such as $0 fraud liability, 24-hour travel assistance for lost or stolen cards, 24-hour roadside assistance, an extended warranty program, auto rental insurance and travel accident insurance.
