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 US. 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 Capital One® Secured MasterCard®, read this review first so that you have a better idea of it before you apply.
Things We Like About Capital One® Secured MasterCard®
No annual fee. This card has no annual fee, which is very rare among credit cards for bad credit, as almost all secured cards charge an annual fee. Other secured cards may charge more than $100.
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 US (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 which will give you an initial credit line of $200. After making your first 5 monthly payments on time you can get access to a higher credit line with no additional deposit needed.
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 credit line increase without adding more security deposit. If your payment and credit history improve in the future, you may qualify for this.
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.
24.99% variable APR may seem high, but it's actually 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 24.99% variable APR.
24/7 access to manage your account online, by phone or with the mobile app.
Our Least Favorite Things About Capital One® Secured MasterCard®
Security deposit does not earn interest. Like many other secured cards, your deposit doesn't earn any interest.
How Other Cards Compare With Capital One® Secured MasterCard®Discover it® Secured Credit Card - No Annual Fee is another great secured credit card option. Unlike Capital One® Secured MasterCard®, this is one of the few secured credit cards that gives you any kind of rewards at all. Earn 2% cash back at restaurants and gas stations (on up to $1,000 in combined purchases in these categories each quarter) and 1% cash back on all your other purchases. Discover automatically matches all the cash back you've earned at the end of your first year as a cardmember (for new cardmembers only). All this with no annual fee!! You get a 23.24% variable APR, which is similar to what Capital One® Secured MasterCard® has (24.99% variable APR). With Discover it® Secured Credit Card - No Annual Fee you can get a credit line of up to $2,500 (compared to a maximum credit line of $3,000 with Capital One® Secured MasterCard®). If you are looking to build your credit while earning cash back and enjoying many benefits (such as free access to see your FICO® Credit Score online, access to Discover Deals, Freeze It® on/off switch, monthly reviews of your creditworthiness to see if you qualify to get your security deposit back, and more) then this card may be the right one for you.
First Progress Platinum Elite MasterCard® Secured Credit Card has an interesting feature that gives you the option to fund your card with your tax refund. Unlike most other cards this card has no long waiting period for it to be processed. After you're approved your card is quickly processed via the new First Progress expedited processing option. No credit history is required to be approved for this card and you don't have to worry if you have a bad credit score as it doesn't need to be good for you to be approved. You can use First Progress Platinum Elite MasterCard® Secured Credit Card to rent cars, hotel rooms or anything else credit cards might be used for. If you have bad credit history and need to work on it First Progress Platinum Elite MasterCard® Secured Credit Card reports monthly to all major credit bureaus so you can establish a good credit history. Just make sure you pay off your balance on time every month. Your credit line is secured by your $200 - $2,000 refundable deposit that you submit with your application. Your online account is accessible 24/7 through the First Progress website. This card has a $29 annual fee which is higher than the Capital One® Secured MasterCard® which has no annual fee and a 19.99% variable APR which is lower than Capital One® Secured MasterCard®.
Capital One® Secured MasterCard® is one of the best secured credit cards in the US, 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 no 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 US, 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 US, and hence would highly recommend it to those of you who want to rebuild or establish your credit.
Katrina Gutierrez is a writer at GET.com. Email: firstname.lastname@example.org.Editorial Disclosure: Any personal views and opinions expressed by the author in this article are the author's own and do not necessarily reflect the viewpoint of GET.com. The editorial content on this page is not provided by any of the companies mentioned, and has not been reviewed, approved or otherwise endorsed by any of these entities. Opinions expressed here are author's alone, not those of the companies mentioned, and have not been reviewed, approved or otherwise endorsed by any of these entities.
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How long do they usually take to look into you before letting you know if you're approved or not?
March 18 2016 at 16:31
I have been looking and can not find anywhere. How do you pay your monthly payments? Do they send you a monthly bill or come straight out of your bank account?
February 24 2016 at 16:51
This card is awesome! Raised my score by 12 points within a month and a half of using it! :D
June 09 2015 at 06:02
If you do not pay anything with it or buy anything with it do you have to pay any fees back???
May 02 2015 at 04:41
Tasha C. Miller-Swanigan
I paid my deposit on 02/05 and received my cars, yesterday 02/20?
February 22 2015 at 07:03
El Compa Beto
I applie for mine Mid December 2014 and got mine first week January 2015. Dont be alarmed look through your emails Capital one will let you know when it ships... I too was concerned good luck on your journey to better credit.
January 17 2015 at 09:30
How long does it take to come in once I've made my initial deposit
January 05 2015 at 20:53
i waiting several days for the card after my deposit , i call my bank and cap one colect the $............. i steel waiting , is to long
December 08 2014 at 22:17
Do they really ask for paper work to be faced over after approved?
October 26 2014 at 18:55