Capital One Secure Mastercard Review

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“It takes money to make money” is sometimes an inevitable truth. This is especially true if you are a newcomer credit or you need to fix a bad credit score.

Fortunately, the Capital One® Secured Mastercard provides an accessible option to improve your credit history, with required deposits as low as $ 49, depending on the terms of your application.

Below, CNBC Select details the rewards, benefits, and fees associated with Capital One Secured to help you decide if it’s the right card for you.

Capital One Secure Mastercard Review

  • How is Capital One Secured different from other secured credit cards?
  • How to report your responsible use of credit to the credit bureaus
  • Additional advantages
  • Fresh
  • At the end of the line

Capital One Secure Mastercard®

Capital One Secured Mastercard® information was independently collected by CNBC and was not reviewed or provided by the card issuer prior to publication.

  • Awards

    This card does not offer cash back, points or miles

  • Welcome bonus

  • Annual subscription

  • Intro APR

    N / A for purchases and balance transfers

  • Regular APR

    26.99% variable on purchases and balance transfers

  • Balance transfer fees

  • Foreign transaction fees

  • Credit needed

Benefits

  • No annual fee
  • Refundable deposit of $ 49, $ 99 or $ 200
  • Access a higher line of credit after making your first five monthly payments on time
  • No fees charged on purchases made outside of the United States
  • Flexibility to change your payment due date

The inconvenients

  • High variable APR of 26.99%
  • No rewards program
  • After you apply and submit your deposit, it takes 2-3 weeks to get your card
  • Capital One periodically examines your account to see if you can switch to an unsecured card, but unlike the Discover it® secure card, there is no clear timeline for when this will happen.

How is Capital One Secured different from other secured credit cards?

Traditionally, secured credit cards are intended for people who have no credit history or need repair their credit score. The limits of secured credit cards are determined by the amount of money a cardholder deposits on deposit. This is done to protect a lending institution when the consumer it lends to has little history to prove that it is a reliable borrower. The deposit is fully refundable since your balance is refunded when you close the account. Typically, secured credit card deposits range from $ 200 to $ 2,500.

The Capital One Secured card comes with a $ 200 credit limit, with options to increase once you prove you’re a borrower who pays your bills on time and spends within your means. But unlike other cards that require you to deposit the exact amount of your credit limit, with a Capital One Secured card there is some flexibility on how much a consumer must deposit to be eligible for a limit. $ 200 credit. According to the Capital One website, your deposit amount is determined by your request and can be $ 49, $ 99, or $ 200, and one of them will give you an initial credit limit of 200. $.

As with most Capital One cards, after making your first five consecutive payments on time, you may become eligible for an increased credit limit. For this reason, in addition to the possibility of having to deposit only $ 49, the Capital One Secured card is one of the choices of CNBC Select for best credit cards to build credit.

Report your responsible use of credit to the credit bureaus

Unlike a prepaid or debit card, using a secured credit card gives you the opportunity to improve your credit score as your on-time payments will be reported to the three major credit bureaus – Equifax, Experian, and TransUnion. . This good behavior will show up on your credit report and help you become a stronger candidate for better credit cards with more exciting rewards.

Additional advantages

One of the most important factors in get a good credit score make your payments on time. The Capital One Secured card makes it easy by giving you control over when your payments are due.

For example, if you get paid on the 15th of each month, you can set your due date on the 16th to prepare for the funds.

There is also an option to set up personalized email and SMS reminders that notify you of upcoming payments.

Fresh

Like all Capital One cards, the Capital One Secured credit card has no overseas transaction fees, and there is no annual fee either.

The variable APR for the Capital One Secured card is 26.99% on purchases and balance transfers, which makes it important for you to pay your balance in full each month.

At the end of the line

the Capital One® Secure makes building better credit accessible, but you can’t be in a hurry. While you can apply for this card without any credit history, there is no clear timeline for when consumers will become eligible for an unsecured credit card.

There are no rewards or benefits with the Capital One Secured card, while other options, such as the Discover it® secure credit card, offer a value comparable to popular rewards cards with cash back. With the Discover it® Secure Credit Card, you can earn 2% Cash Back at gas stations and restaurants up to $ 1,000 in combined purchases each quarter, then 1%. Cardholders also automatically earn unlimited 1% cash back on all other purchases. There is also a clear timeline for when you can switch to an unsecured card: starting eight months after opening the account, Discover will automatically examine your credit card account to see if it can transfer you to a line. unsecured credit and return your deposit.

But if you don’t have $ 200 for a security deposit, the Capital One Secure Credit Card is one of the best secured credit cards because you can potentially qualify for a limit of $ 200 with only a deposit of $ 49.

Our methodology

To determine which secure cards offer the best value for a range of consumers, CNBC Select analyzed popular secure credit cards offered by the biggest banks, financial companies and credit unions that allow everyone to buy their money. to register.

We compared each card on a range of features including: annual fee, minimum security deposit, credit limit, rewards program, introductory and standard APR, welcome bonuses, and transaction fees at. overseas, as well as factors such as required credit rating and customer reviews when available. We also took into account how easy it is to upgrade the card from secure to unsecured and how quickly you can get your security deposit back.

Since it’s unusual for secured credit cards to have strong rewards programs, we haven’t analyzed how many reward points you can earn in the first year. For cardholders looking to rebuild their credit, adopting good credit card habits – spending within your means, paying off your balance on time and in full – is more important than trying to maximize your balance. of points.

Information about the Capital One® Secured Mastercard® was independently collected by CNBC and was not reviewed or provided by the card issuer prior to publication.

For pricing and fees for the Discover it® Secure Credit Card, click here.

Editorial note: Any opinions, analysis, criticism or recommendations expressed in this article are the sole responsibility of the editorial staff of Select and have not been reviewed, endorsed or otherwise approved by any third party.

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