The Capital One Secured credit card works like a regular credit card except that the customer must put down a security deposit to open the account. The minimum deposit amounts are $49, $99 or $200, based on your credit. The security deposit is fully refundable when you close the account and pay off the entire balance.
Typically, the amount of a secured credit card’s security deposit determines its credit limit. However, the two amounts don’t always match with the Capital One Secured card. Even with a $49 or $99 security deposit, you’re guaranteed at least a $200 credit limit. Not everyone is approved for one of the card’s lower security deposits, though.
Everyone can increase their limit up to $1,000 by adding funds to their deposit, however. Just deposit additional money (up to $800) within 35 days of being approved and get a spending-limit boost equal to the extra amount you deposit. Capital One may also increase your credit limit with no increases to the security deposit. You become eligible after making your first five payments on time.
After you pay the security deposit in full, you can use the Capital One Secured card for purchases, just like a regular credit card. You won’t earn rewards on your purchases, as the Secured card’s primary purpose is to help you establish or rebuild credit. Capital One Secured reports to the major credit bureaus every month.
Once you’ve built a solid credit profile with the Secured credit card, Capital One may graduate the card to an unsecured account. You will receive your deposit refund as a statement credit which will be applied to the unsecured account balance. You may also close the Secured card account and apply for an unsecured card on your own.
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