Capital One ® Secured Mastercard ®

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Capital One Secured MasterCard Review (Updated 2016)

Secured mastercard from capital one

The Capital One Secured MasterCard is a secured credit card designed for those who would like to rebuild their bad credit rating. Secured credit cards are very effective at helping individuals to both improve their credit score, as well as to establish a credit score for those who do not have any credit established. The following review will provide an in depth analysis of the Capital One Secured MasterCard.

Things We Like About The Capital One Secured MasterCard

  • No annual fee: This card does not charge an annual fee, which is great because most secured credit cards feature an annual fee, which can be as high as $100.
  • Reports to the 3 main Credit Bureaus: Your activity on this card will be regularly reported to the 3 main credit bureaus (Equifax, Experian, and TransUnion)This will allow you to improve or establish your credit score if you make all your payments on time.
  • Doesn’t always require a security deposit: The best thing about this card that differentiates itself from the competition is, you can qualify for a credit line without having to put down a security deposit. If your credit is decent with a good payment history, you might not have to put down a deposit. Also, depending on your score, you might only have to put down a portion of what your credit limit will be. For example, you might only have to put down $500 to get a $1500 credit limit.
  • Credit limit up to $3000: If your credit score is damaged, your credit limit will be based on the amount you put down as a security deposit. So if you put down $3000, your credit limit will be $3000. The credit limits range from $200 to $3000.
  • Increase credit limit: If you constantly make your payments on time, you will receive a credit limit increase without you having to add another security deposit.
  • Flexible Security Deposit Options: You can make your security deposit all at once, or over time. You will have 80 days to make your security deposit in full. You can make your security deposit online, or even over the phone.
  • No application fee: This card does not charge an application fee, while many other secured credit cards will charge you an application fee.
  • No balance transfer fee: You will not be charged a fee if you transfer balances from another credit card over to this card. Some other secured cards will charge a balance transfer fee, but not this one.
  • No foreign transaction fee: This card will not charge you a fee when you use your card in other countries, or when you use it to pay for any foreign currencies. Most secured cards do charge a foreign transaction fee, but not this one.

Things We Do Not Like About The Capital One Secured MasterCard

  • No interest on security deposit: You will not earn any interest on your security deposit, this really is not to big of an issue, as the interest earned is usually very minimal anyway. However, some secured credit cards do allow you to earn interest on your security deposit which is placed in a savings account.
  • High interest rate: The A.P.R. on this card is 24.99%, most secured credit cards do have higher interest rates then normal credit cards, however there are some with a lower A.P.R. such as the Open Sky Secured Visa card. You can avoid this high interest rate all together by making your payments on time.

Who The Capital One Secured Card Best Suits

  • Those with bad/limited credit looking to build their credit score, as this card reports regularly to the three main credit bureaus.
  • Those who cannot qualify for a traditional, non secured credit card because of their credit score.

How The Capital One Secured MasterCard Compares To Similar Cards

Open Sky Secured Visa Credit Card

This is another secured credit card that is very easy to qualify for. You can literally qualify for this card in minutes as the bank does not run a credit check, making this card ideal for individuals with bad credit and no credit yet established. This card is easier to qualify for then the Capital One Secured card. Like the Capital One card, this card also regularly reports your credit score to the 3 major credit bureaus allowing you to build you credit if you make your payments. This card does have an annual fee of $35, while the Capital One card does not. Like the Capital One card you credit limit can range anywhere from $200 to $3000, as your credit limit will be equal to your deposit. The A.P.R. on his card is 17.39%, which is quite lower then the 24.99% seen on the Capital One Card. Overall the cards are very similar, although we would have to give the edge to this card as it has two big differences, being the Open Sky card is easier to qualify for, and has a lower A.P.R.

This is another secured credit card that has some differences then the Capital One Secured Card. This card allows you to move up to a regular, non secured credit card within 12 months if you continually make your payments, while with the Capital One card, it might take a longer time to move to a regular card. Furthermore, this card has a lower A.P.R. at 19.24%. This card has an annual fee of $29 which isn’t to expensive. The credit limit for this card ranges from $300 to $5000, which will be the amount you put down as the security deposit. This card also pays interest on the security deposit, as your deposit is kept in an savings account that pays interest. This card also regularly reports to the 3 main credit bureaus. The downside to this card is it can be difficult to qualify for, especially if you have a lot of debt in unpaid balances, bankruptcies, or a high debt to income ratio. Overall this card has some better features then the Capital One Secured credit card.

Wells Fargo Secured Visa Credit Card

This secured credit card has a very high credit limit, as the credit limit ranges from $300 to $10 000, which is the highest out of all the secured credit cards. It has a decent A.P.R. at 18.99%. This card has an annual fee of $25. You can qualify for this card with limited/bad credit, just like the Capital One Secured Card. This card allows you to potentially upgrade to a regular, non secured credit card if you make your payments regularly. This card also reports to the 3 main credit bureaus. This card does not charge a penalty A.P.R., while the Capital One card does. Overall this card is very similar to the Capital One Secured card, with the biggest difference being the lower A.P.R.. and the high credit limit of $10 000.

Should You, Or Shouldn’t You, Our Final Verdict

This is a high quality secured credit card that will help you improve/establish your credit score. It does not have any annual fees or applications fees, making it a low cost card allowing you to build your credit. This is a well balanced credit card with the only problem being the high interest rate of 24.99%. However if you make your payments in full you will have not to pay any interest at all, which you should always do especially with a secured credit card. The best feature this card offers that makes it the first choice for many is the fact you can qualify for a credit line without putting down a security deposit. None of the other secured credit cards in this article offer this feature. The high A.P.R. with this card is basically offset due to the fact it virtually has no fees associated with it, this is especially the case if you will make the payments on time together.

However with that being said, if you do no mind putting down the full amount as a security deposit, you could benefit from some of the other cards in the form of a lower interest rate, and a higher credit limit. It all depends on your situation. The bottom line is, this is one of the most popular secured credit cards that you should definitely look into if you are looking for a secured credit card, you really cannot go wrong with this card.


Capital One® Secured Mastercard®

  • 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

Secured mastercard from capital one

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secured mastercard from capital one

If you have a bad credit score

You can get a secured MasterCard credit card from Capital One even if you have a bad credit score.

Secured mastercard from capital oneIf you have a bad credit score (FICO below 550) you are likely to be declined when you apply for a normal non-secured credit card. This can be a significant problem for a young person who needs to recover and build up their credit score for the future, because the way you build your credit score up is by having access to credit and using it in a responsible manner. Simply not using credit is rarely enough to “heal” a bad credit score caused by defaulting on more than one loan in the past.

This is where a secured credit card – such as the Secured MasterCard from Capital One – can be of great value. To get a Secured MasterCard from Capital One you must provide collateral by making a deposit ($49 or $99 or $200) that will be held by Capital One.

You are likely to be approved for a Secured MasterCard from Capital One even with a bad credit history, and you can use your secured credit card to gradually build up your credit score. This will not only be of value when you apply for a standard non-secured credit card in the future, but also if you ever want to take out some other form of loan, such as a home mortgage loan.

The secured MasterCard from Capital One is issued by Capital One Financial Corporation.

  • Even though you have to make a deposit, the Secured MasterCard from Capital One is not a debit card or prepaid card. It is an actual credit card, and how you manage your credit will be reported to three major credit bureaus. This means that you can improve your credit score by managing your Secured MasterCard responsibly.
  • There is no annual fee, so you can get this card even if you plan on living really frugally.
  • The minimal required deposit (collateral) for this card will vary depending on your creditworthiness. The three levels are $49, $99 and $200. The deposit will be held as collateral and is only refundable if you close your account and pay you balance in full.
  • If you make the minimum deposit required for you, you will get a $200 credit line. If you make a larger deposit than the minimum, you can get a higher credit line right from the start – up to a maximum of $3,000.
  • To help you in your efforts to build up your credit score, you get free access to the Capital One Credit Tracker Plus. You can see your own credit score and also learn about how different actions will impact it.

You need to make a deposit, since this is a secured credit card.

More information about the Secured MasterCard from Capital One

Secured mastercard from capital oneThis information was obtained in 2016 and concerns the U.S. market. It is always a good idea to visit the Capital One site to make sure you get the latest updates before you make any decision.

  • The APR for your Secured MasterCard will vary based on the Prime Rate. The APR is Prime Rate + 21.49%. This is true for both purchases, transfers and cash advances. APR is updated quarterly and takes effect on the first day of your January, April, July and October billing periods.
  • The cash advance transaction fee is either $10 or 3% of the amount of the cash advance, whichever is greater.
  • Your due date is at least 25 days after the close of a billing cycle. If you pay your balance in full bye the due date, you will not be charged interest in purchases. (Cash advance fees will on the other hand always be charged on the transaction date.)
  • The late payment penalty fee is up to $35.


Capital One® Secured MasterCard Review

Secured mastercard from capital oneMinimum Security Deposit: $49, $99 or $200

Maximum Security Deposit: $3,000

Introductory Interest Rate: None

Foreign Transaction Fees: Not listed

Interest Earned on Security Deposit: No

This review was provided by William Charles, editor of Doctor of Credit.

This offering by Capital One is far from remarkable, there are plenty of better options in the market. Read the full review to find out why below. This card is the only partially secured credit card on the market (security deposit doesn#8217;t necessarily match the credit limit) but this is only available to people who are approved for the $49 or $99 security deposits. Regardless of the security deposit ($49, $99 or $200) the initial credit limit will be $200.

This card comes with an annual fee of $29, other cards are available with no annual fee (either waived for the first year or free every year).

This card has an APR of 22.90% which is very high for a secured card (these cards have lower APRs than regular cards as the lender is taking less risk as they have a security deposit for the credit limit of the card).

This card reports to all three credit bureaus (TransUnion, Equifax Experian), it doesn#8217;t report as a secured card which is useful for manual reviews of credit reports when applying for other credit.

It#8217;s possible to add funds to the security deposit which will increase the credit limit on this card. It takes approximately one week from the funds being taken to see the credit limit increase. We#8217;re unsure if adding funds results in a hard or soft pull.

UPGRADING TO AN UNSECURED CARD

Capital one no longer does graduations to an unsecured card, they also do not unsecure the security deposit. This means that if card holders want their original security deposit back they#8217;ll need to cancel the card which hurts their average age of accounts. This is another reason why the CapOne secured card is not a good option for those wanting to build or rebuild their credit.

Capital One will approve most applicants for their secured card product. We#8217;ve seen reports of people with recent bankruptcies on file still be approved for this product. If you apply and are rejected, it#8217;s worth calling their reconsideration line to state your case (explain that you#8217;re on the road to rebuilding your credit).

There are very few reasons to apply for this card, it has an annual fee and no rewards program. Unlike some other credit issuers, this card doesn#8217;t graduate to an unsecured product meaning the funds an applicant puts down as their security deposit are not accessible until they cancel this card (and cancelling cards is the last thing you want to do when you#8217;re trying to improve your credit).

Still want to apply? Use the link found below.