Capital One credit card

The Capital One credit card seems to be everywhere, with adverts in almost every magazine and special offers frequently popping through your mailbox. It's certainly high-profile, and its Platinum card offers a very low APR of 6.9% - but the Classic card has a staggering APR of 29.9%.

If you haven't heard of the Capital One credit card, you're lucky: it's one of the most advertised cards you can get, with more than 48 million customers worldwide. A quick visit to the site is exciting stuff: while other lenders trumpet about rates of 10 or 11 per cent, the Platinum version of the Capital One credit card has an APR of just 6.9% variable. That could save you a fortune on balance transfers, but you need to be over 21 and earning more than £10,000 per year. There's also a no-hassle Capital One credit card with the same APR, but be wary of cash advances: they'll incur interest of 20.5% APR.

The other Capital One credit card is called the Classic Card, and its interest rate is utterly terrifying: 29.9% APR variable on purchases, and 31.1% APR on cash advances. The Classic card is clearly aimed at people who won't be able to get a card from other lenders (or qualify for the Platinum card) - the site says "a chance to start rebuilding your credit rating" - but with that APR it's a ridiculously expensive way to get credit.

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