Capital One's New Dining Credit Card: Should You Apply?
Capital One just launched a brand new cash-back credit card with a big focus on food. The Premier Dining Rewards From Capital One card offers cash back rewards for all transactions, with extra incentives for dining and grocery purchases. If you're frequently spending at restaurants, bars and grocery stores to get your grub on, this card might be right for you.
What Perks Does the New Capital One Card Provide?
The new Premier Dining card is a cash back card with competitive rewards rates. Cardholders earn 3% cash back on all dining purchases, 2% cash back on groceries and 1% cash back on all other purchases. Cash back rewards are unlimited and have no expiration date, and they're redeemed in the form of statement credits or checks.
Right now, Capital One is offering a $100 cash-back bonus when you spend $500 in the first three months of becoming a cardmember, which should be pretty easy to do if you're frequently dining out.
The card comes with a number of other benefits. There are 24/7 concierge services to assist with travel bookings, reservations and shopping. Capital One even provides travel perks that can include free room upgrades and early check-in or late check-out times at eligible hotels.
Plus, they cover up to $1,500 in travel reimbursements if your trip is cancelled or cut short, and they provide price protection for eligible items if you find a lower price within 60 days of the date of purchase.
What Will the Card Cost Me?
The Premier Dining card has no annual fee. The annual percentage rate (APR) on purchases and balance transfers is a variable 15.24%, 20.24% or 24.24% based on creditworthiness. There's also no balance transfer fee or foreign transaction fee.
It should be noted that this card is intended for people with excellent credit, so if you don't know where your credit stands, you'll want to check before applying. You can get your two free credit scores, updated every 14 days, here on Credit.com.
Consumers who can qualify for the lowest available APR will be getting a decent interest rate.
Why Should You Apply for This Card?
If the majority of your credit card spending occurs at bars, restaurants and grocery stores, this card is a great option. While we've seen higher cash back rates on dining, they often apply to rotating spending categories that don't last forever. The 3% cash back is a great permanent cash back rate for dining, and the 2% cash back for groceries is a decent supplement.
If you pay your balance off in full each month, this card will deliver its best value. There's no annual fee, so if you can successfully avoid interest charges, you're essentially earning money back on your purchases.
It's also a good card for balance transfers and foreign transactions, as both will incur no additional fees.
Why Shouldn't You Apply for This Card?
If you spend more on other purchase types than you do on dining and groceries, you may be leaving cash on the table by choosing this card. Many other cash-back rewards cards offer greater rewards for all purchases, and if your spending is more diverse, you'll likely earn more by choosing a card with a better overall rewards rate.
You'll also want to avoid this card if you're looking for a great signup bonus. The $100 cash back bonus isn't very exciting, and a consumer with excellent credit should be able to qualify for cards with far better signup offers.
Note: It's important to remember that interest rates, fees and terms for credit cards, loans and other financial products frequently change. As a result, rates, fees and terms for credit cards, loans and other financial products cited in these articles may have changed since the date of publication. Please be sure to verify current rates, fees and terms with credit card issuers, banks or other financial institutions directly.
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