Capital One offers new cash-back credit card

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Capital One is offering a new rewards credit card that pays 1.5% cash back and has very few strings attached.

Its Capital One Cash MasterCard (www.capitalone.com) gives you 1% of your purchases back in cash right after you charge them. Then on the anniversary of the day you opened the account, you’ll receive an additional 50% of the total cash you’ve received in the prior year.

So if you activate a new card on Sept. 1 and use it for $24,000 in purchases for the next 12 months, you’ll earn $240 during that year. Then on Sept. 1, 2012, you’ll get an extra $120 added to your refund.

There aren't any minimums or limits on how much cash back you can collect, and the rewards don't have an expiration date. Plus, there's no annual fee for the card and, like all Capital One cards, no foreign transaction fees.

Cardholders have a range of options for claiming rewards -- you can request cash back whenever you like, either a check or as a credit on your monthly statement.

Besides the regular rewards, you'll also receive a $100 bonus if you spend $500 in the first three months.

As a World MasterCard user, you also get access to benefits like preferred tickets for entertainment and sporting events, and special offers from hotels and retailers.

The Cash MasterCard offers an introductory APR rate of 0% through August 2012. After that, you'll pay a variable 11.9%, 14.9% or 17.9% APR (that's the prime rate of 3.25% plus 8.65%, 11.65% or 14.65%) based on your credit standing.

The catch?

The only one we see is that the Cash MasterCard is for "for people with excellent credit."

That typically means a FICO credit score in the high 700s or above.

Also, Capital One’s website states that it requires: No payments were made 60 days or more late on any type of loan or medical bill in the last year; a credit history without any bankruptcies or defaults; a loan or credit card that is at least three years old with a limit above $5,000.

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