Just to clarify, the £250 credit limit has to be supplied by you, not Capital One.

They supply you with the plastic but you have to pay £250 into the account which acts as your credit limit.

Fundamentally you are lending yourself £250 to spend and keep up the payments, which C1 watch and whey up the risk of them lending you the extra money to spend with.

Once they can see you are paying it back and their risk factor goes down then they will add £250 to your limit giving you £500 limit and so-on.



Good luck



Have you not thought about going to Halifax and asking them to buy you out of your other loan, they are usually prepared to do this if you have 6 months or so clear payment history.