Secured capital one credit card review
Capital One® Secured MasterCard® Editor#39;s Rating: 3 / 5
Are you looking to improve your credit with a secured credit card? Enter the Capital One® Secured MasterCard®, the quintessential card for people looking to rebuild credit or establish new credit. With no annual fee, this card has some attractive features that distinguish it from other secured cards. Find out why you may want to use this card over others to improve your credit.
In this review, you#39;ll find:
- 0.1 Capital One #174; Secured Mastercard #174; Overview
- 0.2 What It Looks Like in Real Life
- 0.3 Should You Get This Secured Credit Card
- 1 Capital One Secured Credit Card Overview
- 2 Capital One® Secured Mastercard® Review
- 3 Capital One Secured MasterCard
Capital One #174; Secured Mastercard #174; Overview
With the Capital One #174; Secured Mastercard #174; , you#39;ll have an opportunity to get a secured credit card with a $200 limit by making a refundable security deposit. The amount you pay ($49, $99 or $200) will be based on your current credit score, and if you want a higher limit than $200, you must make a higher deposit, up to $3,000. This card reports to the major credit bureaus, so keep your balance a small percentage of you limit (less than 25 percent) and make on-time payments to improve your credit over time.
No annual fee. While some secured cards charge an annual fee, this card does not.
Improve your credit score. This card reports to the three major credit bureaus, something that#39;s essential in building or rebuilding your credit.
Track your credit. Gain free unlimited access to your credit score, what-if simulator, and other tools with Capital One® Credit Tracker.
High APR. With a 24.99% variable APR, you do not want to carry a balance on this card.
You may not qualify. If you have really bad credit, this card does not guarantee approval, even with a deposit. If you#39;re worried about getting approved, try one of the Primor® secured credit cards, which guarantee approval under certain conditions. Otherwise, take your chances with this card, but be prepared for disappointment if you#39;re not approved.
What It Looks Like in Real Life
Building back your credit takes time. Apply for this card with a $200 deposit and anywhere up to $3,000 for a higher credit line. Then, keep your charges on this card to less than 25 percent of your limit ($100 for a $400 limit). Make your payments on time and slowly, your credit score will improve.
Should You Get This Secured Credit Card
Capital One #174; Secured Mastercard #174; is meant for people trying to rebuild their credit, but it#39;s more discerning than some other secured credit cards when it comes to approval. If your credit is really bad and you don#39;t want to risk rejection, check out something like the Primor® Secured Visa Gold card. On the flip side, if your credit is better than bad, but not quite good, you may qualify to pay less of a deposit with this card.
Capital One Secured Credit Card Overview
Your credit is an important part of your financial situation. It follows you through your life and impacts so many aspects of what you do, from purchasing a car, a house, and in some cases, what type of job you can get. Building your credit safely and securely starts with making smart decisions. One way you can help build your credit safely is with a secured credit card. Chase is one credit card company that offers a secured credit card so you can build your credit, whether you are just starting out with little to no credit history.
Capital One is a very diverse financial institution that offers a wide array of financial services and products to consumers, from individuals to businesses and commercial patrons. Capital One is one of the most well-known names in the financial business, and one of the most trusted. They are a Fortune 500 company and although a lot of their business is offering credit through credit cards and other services, they do have branch locations in select states.
About Capital One credit cards
Living life strictly on cash is difficult. So many things in life require the use of a credit card, but if you are just starting out and trying to build your credit, or your credit score has taken a hit for one reason or another, it can be difficult to attain a credit card. Many creditors do not see you credit worthy or consider you a high risk for them to issue you a card. Today, there is another option to the traditional credit card that allows you to build your credit with no risk to credit card companies as well as it gives you more control over your credit.
Capital One offers a variety of credit cards with different limits, restrictions, APRs, perks and rewards. Depending on what your needs are, there is a credit card that fits your situation and your life. One card Capital One offers, has become a popular card over the years because it has the benefit of being easier to obtain if you have little to less than perfect credit. It is known as a secured credit card.
Difference between secured and unsecured credit
Secured credit is different from unsecured credit. What are the differences between the two?
Unsecured – With unsecured credit, a creditor is giving you a line of credit to use with the expectation that you will repay what you use on a monthly basis. You will usually have an interest charge attached to the payment for the use of the money they loaned you for your purchase. You may or may not have an annual fee attached to the card as well.
Secured – Secured credit helps you build credit but gives the creditor more security in knowing they will not be out any money, or as much money, should you default on making your payments, this is because with a secured credit card, it is required that you make a security deposit to the account before you are able to use the card. The amount of security deposit will vary depending on your creditworthiness, but typically ranges from $49 to $200. Once the security deposit is made, you are able to make charges on the card. Each creditor has different card usage terms and regulations attached with their secured credit card so you will want to know all the details about the card before you apply, to make sure it meets your needs and expectations.
About Capital One Secured Credit Card
Capital One’s terms and regulations are straight forward when it comes to their secured credit card. Once you are approved for the card, this is what Capital One will expect of you as part of the terms agreement and the benefits you can expect from a Capital One secured credit card:
In order to use your credit card, Capital One will require you to make a security deposit. The amount will vary on your credit history and credit rating. The amount will either be $49, $99 or $200.
Once you have made your deposit, no matter what the amount was, your credit line of $200 will be open to use. You may get an increase in your credit line after you have successfully made an on-time payment for five straight months without having to make an additional deposit. The amount of increase will also vary from person-to-person and their credit status.
You can always check on your account status by using one of the convenient connections to your account, 24 hours a day. Check on your account by phone, online or use the Capital One mobile app.
- Regular reporting to credit bureaus
Capital One regularly reports to the three major credit bureaus which can help boost your credit score. As you make your regular monthly payments on time, this goes on file with the credit bureaus and will help your credit score climb.
One of the best benefits of using a Capital One secured credit card is that you won’t have to worry about vendors not accepting it. Capital One is one of the most widely accepted cards of any. It is accepted at millions of locations and by millions of businesses worldwide which means using your card is hassle-free.
There is an annual percentage rate attached to the card which is set at 24.99%. This means that when you make a charge on your card, there will be a 24.99% interest charge attached to it. If you use your card for a cash advance, you will have an interest charge of 2.99% attached.
Building or rebuilding your credit doesn#8217;t have to be painful or hard to do when you have the right creditor helping you along. Capital One is a highly trusted name in credit and they want to help you live the life you want by giving you a head start in building your credit safely and securely with as minimal risks to both you and them, as possible,
Capital One® Secured Mastercard® Review
- $0 annual fee
- Security deposit starts at $49
- No annual fee, and all the credit building benefits with responsible card use
- Unlike a prepaid card, it builds credit when used responsibly, with regular reporting to the 3 major credit bureaus
- You will get an initial $200 credit line after making a security deposit of $49, $99, or $200, determined based on your creditworthiness
- Get access to a higher credit line after making your first 5 monthly payments on time with no additional deposit needed
- Easily manage your account 24/7 with online access, by phone or using our mobile app
- It's a credit card accepted at millions of locations worldwide
Capital One® Secured Mastercard® is a go-to credit card for people dipping their toes in to building their credit histories, mostly due to the card's low initial security deposit and $0 annual fee. We believe people shouldn’t need to pay to build their credit and that’s one reason why cardholders with bad credit or building a tarnished credit history may want to consider applying for Capital One® Secured Mastercard®. We picked it as one of the best secured credit cards for reasons we'll cover in more depth below.
- Cardholders must first make a refundable deposit before using the card for purchases.
- Available credit is limited to the deposited amount.
- Secured credit cards are true credit cards and cardholders will incur interest charges when carrying balances month to month.
- One way you can establish a better credit history is by making purchases on credit and then paying bills on time. Note, a good payment history is the largest driver to improve your FICO credit score, accounting for 35% of your score.
- Card issuers will review your account after a predetermined period and increase your credit limit and/or remove the deposit requirement.
Let’s review Capital One® Secured Mastercard® now that the essentials are covered.
What we like about Capital One® Secured Mastercard®
- $0 annual fee – We believe cardholders building credit should expect a card without an annual fee, which Capital One smartly ditched for this card.
- Low credit limit – It shouldn’t take a lot of money to build credit and the card's small deposit is among the lowest we’ve come across for popular secured credit cards. Cardholders must make a $49, $99 or $200 deposit, depending on creditworthiness. Other competing cards require a deposit starting as high as $300.
What could be improved for Capital One® Secured Mastercard®
- Free FICO® score – Other secured credit cards offer cardholders access to a free FICO score each month, which is an essential credit building tool. Capital One does offer a credit profile with its proprietary CreditWise® tool. But keep in mind that it’s not a FICO® score, which is used in over 90% of lending decisions. A credit profile doesn't include a score, but does provide a rundown of your credit accounts to help monitor your credit history, so there is value attributed to using CreditWise®.
How to best use Capital One® Secured Mastercard®
- We don’t encourage racking up debt on a secured credit card. Paying off balances each month to avoid interest charges is a savvy move. That way, building your credit history by establishing good credit behaviors doesn't cost money in the form of fees or interest charges.
- Make five on-time payments. Continue to do the same thereafter, of course. Capital One will increase your credit limit after making your first five monthly payments on time, with no additional deposit needed.
- Track your credit profile with CreditWise® to keep tabs on how your credit building efforts are paying off and to monitor your credit report for any errors.
Capital One Secured MasterCard
Not the worst choice, but there are better.
Advertiser Disclosure: This post contains references to products from one or more of our advertising partners.
We give kudos to the Capital One Secured MasterCard for not charging an annual fee and being one of the only secured cards that potentially lets you deposit less than your credit limit.
If you can’t afford a $200 security deposit all at once, Capital One Secured is a great option for its installment plan. This makes the Capital One card a solid choice for someone trying build (or rebuild) their credit history.
This feels like a credit card that is trying to help its users achieve more. Besides its fee and security deposit structure, the Capital One Secured MasterCard also includes access to its CreditWise tool, which allows users to monitor changes in credit over time.
You#8217;ll also be allowed to #8220;graduate#8221; to a higher credit line with no additional deposit after making your first five monthly payments on time.
The annual percentage rate is higher than some other secured cards we#8217;ve reviewed, which could prove a problem if you don#8217;t pay on time.
This is a fine starter card, but in the end we find the Discover it Secured card is a superior choice for a secured card because it offers cash-back rewards for your spending.
If you have bad credit a limited credit history, the Capital One Secured MasterCard is a great first step card to help build up your credit score. If you qualify, you can put down as little as $49 to get a credit limit of $200. Or, if you have to put down $200 to get a limit of $200, this card lets you pay that amount in installments.
If you maintain a good payment history, after five months you can gain access to a higher credit limit. This card also will report regularly to the three major credit bureaus so you can improve your score.
- Start with an initial credit line of $200 and get access to a higher credit line after you make five on-time monthly payments.
- You can pay your initial deposit in installments, unlike most other secured credit cards.
- This card reports to all three of the major credit bureaus so on-time payments can help build up your credit score.
- There#039;s no annual fee.
- You#039;ll earn no rewards.
- This card comes with a high APR, but that’s typical of secured credit cards.
- You#8217;ll pay no annual fee.
- There is no foreign transaction fee on purchases made outside of the United States.
- Purchase APR is a variable 24.99%, which is high.
This card comes with Platinum Mastercard benefits, including travel and auto insurances and protections.
You can increase your credit limit up to $3,000 by making additional deposits up to the amount you want.