To get a Capital One Secured card security deposit refund, you will either need to close your account and pay your balance in full, or you can earn it back as statement credit by using your card responsibly and graduating to an unsecured card. Capital One Secured deposit refunds are sent to you as checks in approximately two billing cycles. If you have an unpaid balance or owe any fees, Capital One will deduct the amount owed from your deposit refund.
Capital One may also refund a secured card deposit if the card graduates to an unsecured card. Capital One periodically reviews accounts and upgrades select Capital One Secured accounts to unsecured Capital One Platinum Credit Card accounts. In this case, your deposit refund will be credited directly to the unsecured card account within two billing cycles. You will also receive an email or letter informing you that you have been upgraded to an unsecured Capital One Platinum account.
First, once your credit has improved and you’re ready to move on from your secured card, you can close the account and your full deposit will be returned to you as long as you’ve paid your balance in full.
The second scenario is when Capital One feels as though your credit situation has improved and you are ready for an unsecured product. They may automatically upgrade your card to the Capital One Platinum Credit Cardand refund your deposit.
Capital One may increase your Capital One Secured credit limit after you make several consecutive payments on time. If you continue to pay on time and keep your account in good standing, Capital One may also refund your deposit and automatically upgrade you to an unsecured card. The deposit is refunded to you in the form of a credit on your account though.
There are two ways to get a Capital One Secured credit limit increase: Depositing more money than required and consistently paying your monthly bill on time. The first option is available prior to account opening and the second after your account has been open for at least five months. I’ll walk you through both below.… read full answer
Here are the Capital One Secured credit limit increase options:
Over-deposit before getting your card
If you get approved, Capital One will require you to place a security deposit of $49, $99 or $200 to actually open your account. The deposit amount you’re assigned depends on your overall credit standing, but everyone starts with a $200 credit limit – unless you deposit more than is required, that is. Any amount you deposit above what’s required will boost your spending limit by the same amount. For example, if you’re required to place a $49 deposit and you put down $149, your credit limit will be $300 instead of $200.
Pay on time for 6+ months
After account opening, the only way to get a Capital One Secured credit limit increase is to pay on time for 6 months. If you do, Capital One will likely raise your credit limit during the 7th month. By how much, though, is completely up to them. If you pay on time but other aspects of your credit get worse, you might not get an increase.
It’s also possible that Capital One will eventually return your deposit and transition you to an unsecured credit card with a higher credit limit. But that depends on how financially responsible you are.
Different secured cards have different rules regarding security deposits and spending limit increases. You can usually increase your limit by depositing more money, often at any time. But you generally can’t just call and ask for more spending power without giving the credit card company something in return.
The only absolute chance you have to get yourself more credit is at the very start when you send in extra money on top of your deposit. Otherwise, you’ll have to speak with your actions by paying on time until Capital One raises the limit themselves.
The Capital One Secured card may graduate to an unsecured card automatically after a cardholder has demonstrated a history of responsible use. In that case, Capital One will refund the security deposit, which will effectively turn the Cap 1 Secured card into an unsecured card with a regular credit limit. The timeline to graduate to unsecured varies depending on the cardholder’s payment history.… read full answer
There’s no guarantee when, or if, Capital One will graduate the Secured card to unsecured. But you don’t have to wait for an automatic graduation to unsecured to find out. Call customer service at 1 (800) 227-4825 to see if you’re eligible. At a minimum, you should have made your first five monthly payments on time. The longer your track record of timely payments, the better your chances of graduation from secured to unsecured.
When the Capital One Secured card graduates to an unsecured card, it’s not considered a new account. That means no hard pull is required and there’s no effect on your credit score. Keep in mind also that upon graduation to a secured card, your security deposit refund will be applied as a statement credit on the unsecured account.
You can close a Capital One Secured through your online account or by phone. To close the account online, log in to your account and click "I Want To…" at the top of the page. From there, select "Close Account" from the Account Services menu and confirm you want to close the account. To close a Capital One Secured account by phone, call … read full answer(800) 227-4825 and enter the card number to connect to a customer service representative. Be firm in your intent to close the account as the representative may offer you incentives such as a higher credit line or a lower interest rate to keep the account open.
Once you close your Capital One Secured credit card, the account is no longer active. Any pending activity on the account before you closed the card will still post. But no new transactions will be allowed. You’re responsible for making at least the minimum monthly payment on any unpaid balance until it’s gone. You’ll continue to receive statements until the balance reaches zero.
You should properly dispose Capital One Secured credit card after closing the account. Cut the card in as many small pieces as possible, either with a pair of scissors or a document shredder that’s able to shred plastic credit cards.
Keep in mind that closing the Capital One Secured may lead to a slight drop in your credit score. Even credit cards with zero balance can help build your credit score by reporting positive information to credit bureaus. So keeping a card with zero balance and no annual fee has no drawbacks. There are several steps you can take to close a credit card account without hurting your score.
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