Capital One Secured Card Review
- October 22, 2018
- Posted by: Jeff Gitlen
- Category: Credit Cards
- $200 - $3,000 credit line available
- Security deposit required ($49, $99, or $200 depending on creditworthiness)
- No annual fee
- Cash Advance APR: 28.24%
- Credit line improvements with good credit practices
For consumers with good or excellent credit history, there is a wide variety of credit card packages and deals available that reward good credit practices. These enticing deals create avenues towards better credit and consequently better rewards; however, there are some who do not possess a reliable history with credit scoring.
These potential cardholders, with their bad credit or unreliable history, are essentially cut off from every obtaining a card with rewarding benefits, but there are still options to start building credit available. Capital One offers such an option to potential cardholders in need of an opportunity to salvage their credit score. This option, known as the Capital One Secured Mastercard, helps provide a solid base for consumers in need of strict guidelines leading to a better credit score.
Security Deposit and Credit Line
The main headline on the card is the promise of an established credit line that inspires responsible spending; the credit line is determined by the security deposit upon application.
Like most secured credit cards, the Secured Mastercard from Capital One does not offer any special benefits on par with any of its other credit cards; its sole purpose is to provide a landing ground for cardholders who have lost their footing in bad credit history.
With the minimum security deposit paid, the cardholder automatically qualifies for a $200 credit line; however, if the cardholder opts to pay extra and add more than the initial security deposit, then a higher credit line is available. A possible maximum credit line of $3000 is available which is only attainable through confirmation of responsible credit building or a high initial security deposit. Credit score progress is always available on the handy CreditWise®, the free program that allows Capital One members to view credit scores with ease.
Aside from the lack of special benefits, the Capital One Secured Mastercard comes with the full list of perks offered to all Capital One members. Any fraudulent activity on the card account costs the cardholder nothing with 100% fraud coverage; this is supplemented with 24/7 customer service which is accessible online or by phone.
The Secured Mastercard includes an extended warranty on eligible goods with a manufacturer warranty in the event of damage. Car rentals are covered when renting with the Secured mastercard, so the user need not worry about signing an insurance waiver with the rental company. If there is ever an accident while on board a plane, train, or ship, the cardholder is covered with travel accident insurance in case of loss of limb or life. Several 24/7 assistance services are available in the event of a lost card, malfunctioning vehicle, or any other mishap.
Rates and Fees
$5 or 3%
Since this is a secured credit card, it is only natural that the Secured Mastercard is accompanied by above average interest rates and fees for any practice of misconduct in credit building. In order to apply for the Secured Mastercard from Capital One, the potential cardholder must drop a security deposit of either $49, $99, or $200 depending on the standing of the applicant's credit (naturally, the worse credit the higher the security deposit).
In spite of this security deposit, there is no annual fee associated with the Secured Mastercard which is unusual for a secured card, so cardholders can enjoy some respite in the midst of credit rebuilding. There is a $10 or 3% transaction fee on all cash advances with the rate decision deriving from whichever produces the higher value. Late payments garner a fee of up to $35 with any lower value as a possibility.
There are high annual percentage rates (APR) with this package due to the usual strict terms that follow with secured card membership. The APR for regular purchases is 24.99% (variable) which will not be charged lest there is a late payment on a billing statement. Similarly, the APR for any balance transfers is also set at 24.99% (variable). If there is ever a need for a cash advance, an annual percentage rate of 24.99% is assessed to the total cash advance amount.
The Secured Mastercard provided by Capital One definitely does not qualify as a heavy reward based credit card, but this is not the intention of the card nor does it target a consumer with a good credit score. This is a basic credit card meant to inspire good credit building responsibilities with the possibility of graduating in a way to better cards with rewarding benefits.
Not satisfied? Check out some of the best Capital One credit cards that we have reviewed.