A rare partially-secured credit card, the Capital One® Secured Mastercard® is perfect for building credit at a low cost. In addition to a $0 annual fee and a $0 foreign transaction fee, the Capital One® Secured Mastercard® offers a $200 starting credit limit in return for a refundable security deposit that could be as low as $49. The deposit requirement also could be $99 or $200, depending on each applicant’s creditworthiness. The Capital One Secured Card also reports to all three major credit bureaus each month.
All in all, Capital One Secured is among the very best credit cards for low-cost credit improvement. Below, you can learn everything else you need to know before applying.
Capital One Secured Card Review Highlights:
- Could be partially secured. Depending on your creditworthiness, you will have to make a deposit of $49, $99 or $200 for a $200 spending limit. That means it’s possible for the spending limit you’re assigned to exceed the amount of the refundable security deposit you’re required to place. Bear in mind that you can’t necessarily count on being approved for any unsecured spending power, which might be important if you need an emergency loan. But it would be a pleasant surprise if building credit is your top priority.
- Will help you improve your credit. Like all credit cards, the Capital One Secured Card reports account activity to the major credit bureaus on a monthly basis. As long as you pay your bill on time and avoid maxing out your spending limit, this information will be positive and will lead to credit score gains. WalletHub’s free daily credit score updates will help you track your progress.
- No annual fee helps keep costs low. Whether you need a credit card to (re)build your credit standing or to pay bills that you can’t afford in cash, not having to pay an annual fee will make your job much easier. The same can be said of the Capital One Secured Mastercard’s lack of monthly and one-time fees, which are far too common with credit cards for bad credit.
- Not available to folks with seriously damaged credit. You are not eligible for the Capital One Secured Credit Card if you have a non-discharged bankruptcy, a past-due Capital One credit card or an over-limit Capital One card. Furthermore, you can’t have a Capital One credit card that has charged-off in the past year, and your monthly income must exceed your monthly housing payment by at least $425.
At the end of the day, the Capital One Secured Card is one of the very best credit cards for building or rebuilding your credit standing. It’s one of just a handful of credit cards for people with bad credit that does not charge an annual fee. And it’s one of the only secured cards whose spending limit can be higher than the amount of your refundable security deposit.