Designed for those who have bad or no credit, the Capital One Secured Mastercard doesn’t come with any bells or whistles. Nor does it cost anything to carry. It can help build your credit with responsible use.
*Check out Capital One bonuses for Checking & Savings accounts.
| Bonus available | No introductory offer. |
| Ongoing rewards/benefits | Access a higher credit line when you make your first 5 monthly payments on time. Regular reporting to the 3 major credit bureaus. Get an initial $200 credit line after making a security deposit of $49, $99, or $200. |
| Foreign transaction fees? | No |
| Annual Fee | $0 |
PROS
- Designed for poor or no credit
- No annual fee
- Access a higher credit line
- No foreign transaction fees
CONS
- Deposit required
- No welcome bonus
- No rewards
- High APR
Capital One Secured Mastercard Top Features
All secured credit cards require a security deposit which sets your credit limit. Unlike most secured cards, the Capital One Secured Mastercard might let you deposit a smaller amount, depending on your creditworthiness.
For the minimum credit line of $200, your required deposit may be $49, $99 or $200. If you want a higher limit (up to $3,000), make a bigger deposit before you activate your account.
If you can’t pay your deposit all at once, Capital One allows you to pay in installments. You just have to pay the full amount by a certain time frame after you’ve been approved.
Your deposit will be placed in an interest-bearing, secured, savings account. When you close your account, you’ll receive a deposit refund plus interest.
Credit cards designed for people with poor credit often come with low limits. With the Capital One Secured Mastercard, you’ll be rewarded with a higher credit line if you make your first 5 monthly payments on time.
In comparison, most cards will make you wait an average of 12 months before you can request an increased limit.
You won’t have to pay any annual, balance transfer or foreign transaction fees. However, I would advise against transferring any credit card debt to your Capital One Secured Mastercard, because of its high APR. Unless, of course, you’re currently paying a higher penalty APR.
Bottom Line
The Capital One Secured Mastercard doesn’t offer any welcome bonuses, rewards or value-added perks. But it’s still an excellent option if you need to build your credit with its low minimum security deposit and very few fees. Use it responsibly to help build a solid credit history, so you can be open to more rewarding credit cards in the future.
But be careful. Don’t carry any debt with this card because of its high APR. As with all credit cards, make sure to pay your balance in full and on time.
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Disclaimer: These responses are not provided or commissioned by the bank advertiser, credit card issuer, hotel, airline or other entity. Responses have not been reviewed, approved or otherwise endorsed by any of the entities included within the post. It is not the bank advertiser's or any other entity's responsibility to ensure all posts and/or questions are answered.