The Capital One® Secured MasterCard® gives an opportunity for people with bad or limited credit to improve their credit score while having access to a credit card. This card is issued by Capital One Financial, one of the largest card issuers in the U.S. This secured credit card is a credit card that reports to the three major credit bureaus; it is not a debit card which doesn't help build credit. If you have bad or no credit, I recommend that you don't damage your credit further by applying for regular credit cards as you will most likely be turned down.
To find out more about the pros and cons of the Capital One® Secured MasterCard®, read this review first so that you have a better idea of it before you apply.
Things We Like About This Card
No application fees. You can apply for this card without having to first pay a fee which would go to waste if you are not accepted. Some other secured cards actually charge you an application fee, but not this card.
Automatic reporting to the 3 main credit bureaus. As an actual credit card, your payment information will be reported to all 3 credit bureaus in the U.S. (Equifax, Experian and TransUnion). So as long as you make timely payments on your card and not exceed your credit limit, your credit score will improve gradually, which will then enable you to apply for regular unsecured cards that usually comes with a higher credit line and rewards program.
Get up to $3,000 of credit. The amount of credit you can have is based on the security deposit you make, and credit limits from $200 up to $3,000 are available. The minimum refundable security deposit is $49, $99 or $200 depending on your credit score and other application information sent to the card issuer. The minimum security deposit gives you a credit line of $200.
You can make your security deposit all at once or over time. Make sure to make your full minimum deposit within 80 days of being approved. You can make your security deposit online or over the phone. Once your full deposit has been received, you will get your card shortly.
Get a future credit line increase without adding more security deposit. If your payment and credit history improve in the future, you may qualify for this.
Access your credit score for free each month and free access to credit tips to help you improve and maintain your credit score with Capital One® Credit Tracker.
Capital One is FDIC insured, which means that if the bank declares bankruptcy, you can still get back the money that you put as a deposit as that is insured by the US government.
Accepted everywhere MasterCard is accepted, which means that you can use your card to pay for things at practically all stores, since almost all merchants and retailers accept MasterCard.
22.9% variable APR for purchases is quite low for a secured credit card.
No balance transfer fee, which allows you to transfer your existing card balances to this card without paying any fee to do so. Remember that if you do transfer balances from another account to this card, you must still pay the balance transfer APR, which is 22.9% variable APR.
24/7 access to manage your account online, by phone or with the mobile app.
Our Least Favorite Things About This Card
$29 annual fee which must be paid timely every year in order for your account to be considered active. Almost all secured cards charge an annual fee. This $29 annual fee is very low compared to other secured cards which may charge more than $100.
Security deposit does not earn interest. Like many other secured cards, your deposit doesn't earn any interest.
The Capital One® Secured MasterCard® is one of the best secured credit cards in the U.S., and is an excellent choice of card to get for people who would like to improve their credit score or to build a credit history, and also to have access to a certain credit limit which will be useful in many situations.
Credit limits from $200 to $3,000 are available, and if your creditworthiness improves in the future, you may be granted a credit increase without having to increase your security deposit. With a low $29 annual fee and no application or monthly maintenance fees, this card is a low-cost way of building credit. As an actual credit card and not a debit card, it reports to the 3 credit bureaus in the U.S., so if you pay on time every month, your credit score will go up over time.
Remember that this card is mainly to help you improve your credit score, so use it responsibly so that you don't create a balance which you won't be able to pay off in full by the due date each month.
Considering all the benefits of the Capital One® Secured MasterCard®, we at GET.com rate it as the best secured credit card to get in the U.S., and hence would highly recommend it to those of you who want to rebuild or establish your credit.