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Buy Power Capital One Card Review

Note: See also How to Choose a Credit Card for tips on finding the right credit card for you. Our partner site CardRatings.com also has articles to help you find the right card be it a cash back credit card or balance transfer credit card. Their Credit Card Comparison Table also allows you to easily search dozens of current credit card offers.

Thinking of using a credit card for more than cash rewards or a free hotel stay? What if a credit card could help you save for something more substantial, like a new car or a flexible lease?

It is possible. The BuyPower Card from Capital One® card gives users 5% back on their first $5,000 worth of purchases without any opt-ins or rotating categories and then 2% thereafter. You can redeem rewards against the lease or purchase of a Chevrolet, Buick, GMC or Cadillac car or truck.

[See a full review on CardRatings.com]

There are other perks that make this a card to consider for anyone in the car market: 0% intro APR on purchases for the first 12 months.

Let’s dive in:

The Pros

  • Rewards never expire. This is a big deal because you can really take advantage of the fact most people plan their new car purchases well in advance. Expect to buy sometime in the next five years? This could be a good addition to your wallet if you plan to use it frequently.
  • No rotating categories, no limit on how much you can earn or redeem, and no required opt-ins, which can pose a problem for someone who forgets to check on such things. With those cards if you forget to opt-in you miss out on that quarter’s reward.
  • There are actually several car makers to choose from: Chevrolet, Buick, GMC or Cadillac. GM is the #1 car maker in the U.S. currently according to data from Edmunds.com.
  • No annual fee
  • No foreign transaction fee
  • You can combine your Buy Power rewards with dealer offers, which could be lucrative if you are willing to shop around. You can use your rewards at any dealer in the country.
  • A great card for General Motors brand loyalists.

The Cons

  • If you don’t use your card very often, the rewards might not be all that impressive. Ditto if you are in the market for a car in a hurry – you’ll need to use the Buy Power card for a while to really bulk up on the rewards.
  • For example, you spend $5,000 out of the gate and earn the full 5% — that’s only $250. But then you put an additional $3,000 a month for the rest of the year on your card at the 2% unlimited, and net another $720. Perhaps not enough to take you from base model to completely tricked-out, but plenty to justify a fancier navigation system or higher-end finishes.
  • This is not the card for balance transfers. There is an initial 0% on purchases, but not balance transfers. That APR is quite high considering the great zero balance transfer options for those with solid credit, such as with the Chase Slate. The cards says balance transfers receive a variable rate of 13.15%, 17.15%, 20.15% or 23.15%, based on your creditworthiness. Same for cash advances – which you should never use a credit card for anyway – are around 25%. Also good to know: If you are a part of the GM Employee Purchase Program, earnings from the card don’t count against that program.

The Takeaway

Capital One has made the Buy Power a strong addition to their existing line-up of cards, which are generally positively reviewed for their customer service.

Some consumers have questions about what credit score you need in order to be approved for this card. In general, this card is tiered toward those with good to excellent credit. That is generally considered to be around a 660 FICO score or higher, but your credit score is not the sole factor in credit decisions.

Rich Blog experts recommend you pay attention to your credit health and get your free report yearly to check for any mistakes.

Related content: A step-by-step guide to getting your free credit report online

GRS is committed to helping our readers save and achieve their financial goals. Savings interest rates may be low, but that is all the more reason to shop for the best rate. Find the highest savings interest rates and CD rates from Synchrony Bank, Ally Bank, and more.

Disclaimer: This content is not provided by any company mentioned in this article. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by any such company.