Average credit score and in the market for a rewards card? Here's one that may be perfect for you. | CreditShout

Average credit score and in the market for a rewards card? Here’s one that may be perfect for you.

By Kevin / August 17, 2009


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Rewards credit cards are quickly becoming the most popular type of credit card on the market. What’s more, of all the forms of rewards programs available cash back cards top the list. Unfortunately for many individuals, rewards credit cards are generally only targeted at people with excellent credit scores that are 720 and above. This leaves so many people unable to find a worthy rewards credit card and they often end up choosing credit cards that charge high fees.

Here’s the good news: if you have at least average credit (about 600 and up) you can still qualify for a good rewards credit card that can earn up to 2% unlimited cash back. The Capital One No Hassles Rewards card is a great choice for individuals out there that don’t have the best credit and really want to start earning rewards on their credit card purchases. Here’s a guide to this credit card that goes over all the great benefits you can get.

Probably the best news for many people is this: there is no limit to the cash back you can earn with Capital One’s No Hassles Rewards card. Also, your points never expire and you can request your cash back whenever you want. That means no waiting for a set amount, like $25 or $50. There’s also a low annual fee for the credit card ($29) and you can qualify for a 0% introductory APR until November 2010. After the introductory period your APR will be a variable 19.8%, although the point of a rewards card is never carrying a balance.

The rewards you earn with the No Hassles card are very generous considering the credit score required. You earn 2% for all purchases at gas stations and grocery stores. All other spending earns a flat 1%. Capital One’s website gives a sample of monthly and yearly spending and shows you how much you can earn:

Special Purchases per month

  • Food ($75)
  • Gas ($75)

Regular purchases per month

  • Drug store ($25)
  • Clothing ($25)
  • Entertainment ($50)

Other purchases per year

  • Shoes ($50)
  • Stereo ($250)
  • Bicycle ($300)

Yearly total: $3,600

2% back on gas & groceries ($36)

1% back on purchases ($18)

Total cash back earned: $54

Your spending may be similar to this but most likely you spend more each month on food and groceries, as well as entertainment. This example also shows that the $29 annual fee can easily be made up and surpassed with modest credit purchases.

As always, no matter which credit card you use, especially for rewards, remember the importance of paying your balance in full each month. With cash back cards you never want to be paying any APR, no matter how low it is, because it will surely be higher than your rewards.

While many cash back credit cards earn much more than the No Hassles card, few are available to those with average credit. This card also has a great feature: no rewards expirations or caps. If you’re looking for a great starter rewards card that can help you save more money each year take a look at the Capital One No Hassles card for those with average credit.

The editorial content on this page is not provided by any of the companies mentioned and has not been reviewed, approved or otherwise endorsed by any of these entities. Opinions expressed here are the author's alone. Additionally, the opinions of the commenters are not necessarily the opinions of this site

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