Customers unsatisfied with their credit card options have a new technology with which to experiment.
On Monday, McLean-based Capital One introduced its Card Lab, which allows individuals to build their own credit cards according to their own particular preferences.
“We wanted to play to the emerging trend of a shift of control from companies to consumers,” said Capital One spokeswoman Pam Girardo.
Individuals who use the Card Lab can customize such things as their base rewards (whether they use miles, points or cash), their reward bonuses, interest rates, introductory offers, annual fees and design of the actual cards. But that doesn’t mean customers can just choose the cheapest option or best bonus for every category, Girardo said. Once someone chooses no annual fee, they may not, for example, be able to get as low of an interest rate.
“If you’re building a home and want a pool in your backyard, you’re going to have to give up some of the lawn,” Girardo said. “We think it’s really neat that consumers get to see the tradeoffs that are required to build the card that works for them.”
Consumers do not need a better credit score to apply for a build-your-own-card than they do for a traditional one, according to Girardo.
After visiting the Web site at www.capitalone.com/cardlab and building a card, consumers then complete an online application for approval.
“You know credit card companies have the ability to build these cards in so many different ways,” said Justin McHenry, research director for IndexCreditCards.com “This is a way of throwing it all out there online, so that customers can make the choices themselves, and they don’t have to guess what’s going to motivate you.”
Dennis Moroney, a senior research analyst for TowerGroup, said the venture will likely most appeal to a specific demographic, such as Web-savvy cardholders in their thirties.
“Capital One is a creative marketing company,” Moroney said. “If it catches on, you will see other issuers following their lead.”
