Capital One Secured Review: Good Choice for Bad Credit

Pulling together the money for a security depository can be a major hurdle in getting a secured credit poster, one of the best tools for build up or rebuilding your credit rating. The Capital One Platinum Secured Credit Card makes deposits a small less daunting, and that’s a big argue why it ‘s one of NerdWallet ‘s front-runner secured cards. With an annual fee of $ 0 and a handful of features of special interest to people working on improving their recognition score, the Capital One Platinum Secured Credit Card is a firm option for build credit.

Capital One Platinum Secured Credit Card

: Basics

Card character : Secured.

annual tip : $ 0. sake rate : The ongoing APR is 26.99 % variable APR. depository requirement : Get a $ 200 credit wrinkle with an initial down payment of $ 49, $ 99 or $ 200, for those who qualify. You can deposit more money before your history opens to increase your credit limit up to a maximal of $ 1,000. Rewards : none. extraneous transaction fees : none.

Why you might want the

Capital One Platinum Secured Credit Card

Flexible security deposit

Like all secured recognition cards, the Capital One Platinum Secured Credit Card requires a refundable security deposition. With most plug cards, your accredit restrict will be equal to your deposit, but the Capital One Platinum Secured Credit Card allows for a lower deposit for those who qualify. Your deposit may be $ 49, $ 99 or $ 200 for a starter credit lineage of $ 200. You can increase your terminus ad quem up to $ 1,000 by making more than the minimal lodge before activating your report. Best of all, if you can ’ deoxythymidine monophosphate pay your security deposit upfront, Capital One will let you pay it in installments of at least $ 20, arsenic long as you provide the full sum within 35 days of blessing. This is a bang-up benefit for those on a fasten income.

Access to a higher credit line

Make your monthly payments on meter, and you could get access to a higher credit restrict in deoxyadenosine monophosphate little as six months without having to deposit more money. A higher credit limit gives you increased flexibility, but more significant, it can help your credit by reducing your credit rating utilization, a key factor in your accredit score. The lower your utilization, the better. If you have a $ 200 credit restrict and a balance of $ 60, your credit rating use is 30 %, which is about american samoa high as you want it to go. If your credit line gets bumped up to, say, $ 500, your use drops to 12 %.

Freedom from fees

citation cards for people with bad credit or no credit are ill-famed for high fees. That ‘s one of the reasons NerdWallet recommends secured credit cards for building citation : You have to put down a security deposit, but you get that money back when you close the account in dear standing or upgrade to a regular unbarred card. The best batten cards charge reasonable fees. The Capital One Platinum Secured Credit Card keeps things lighter with an annual tip of $ 0. Like all Capital One cards, it does n’t charge foreign transaction fees, so you can take it with you if you ‘re traveling abroad. The tease does charge a late tip of up to $ 40 if you do n’t pay your bill by the due date, but such fees are easily evitable.

Upgrade potential

capital One is one of the few major issuers offering credit cards for people in all credit grudge ranges. Its guarantee calling card is for people who are building credit. Its popular rewards cards, like the Capital One Venture Rewards Credit Card and the Capital One Quicksilver Cash Rewards Credit Card, are for people with good or excellent credit. But it besides has excellent products for people in the middle, with fair or “ average ” credit. These include the Capital One Platinum Credit Card and the Capital One QuicksilverOne Cash Rewards Credit Card. As you use your card to establish a good payment history and build your credit, you may be able to upgrade your history.

Drawbacks and alternatives

High APR

Like most guarantee cards, the Capital One Platinum Secured Credit Card charges a high interest rate. The ongoing APR is 26.99 % varying APR. however, that does n’t have to affect you : Pay off your balance wheel every calendar month, on time and in full, and no interest will accrue. There ‘s no basic 0 % APR period, but most credit cards for bad credit don ’ deoxythymidine monophosphate offer one anyhow, so you ‘re not missing anything.

No rewards

Like most fasten cards, the Capital One Platinum Secured Credit Card does n’t offer rewards. There are a few secured cards that do offer rewards, though, like the Discover it® Secured Credit Card. This card pays 2 % cash bet on on up to $ 1,000 spent per quarter on dining and natural gas, and 1 % binding on all other purchases. It has an annual tip of $ 0. There ‘s even a bonus for new cardholders : presentation offer : Unlimited Cashback Match – only from Discover. Discover will mechanically match all the cash bet on you ’ ve earned at the end of your foremost class ! There ’ mho no minimum outgo or utmost rewards. Just a dollar-for-dollar match. however, there ‘s a minimum security system deposit of $ 200 for the Discover it® Secured Credit Card, much higher than the Capital One Platinum Secured Credit Card ‘s $ 49 or $ 99 options for those who qualify. Unlike the Capital One Platinum Secured Credit Card, the Discover it® Secured Credit Card provides a credit rating specify equal to your security deposit in all cases — and not a penny more. To see more likely poster options for build or rebuilding your credit, take a search at our best credit cards.

Bank account and credit check required

To qualify for the Capital One Platinum Secured Credit Card, you must have a check or savings account and Capital One could check your credit and employment history. That can present a hardship for applicants without a depository financial institution history or a recognition history. The OpenSky® Secured Visa® Credit Card does n’t perform a credit check when you apply, and you can pay your security lodge via a money order or Western Union if you don ’ t have a bank bill. There is a $ 35 annual fee, however. The Green Dot Visa® Secured Credit Card doesn ’ triiodothyronine require a thoroughly credit or a bank account, either. You can make cash deposits at participating retailers, including 7-Eleven, CVS, Dollar General, Rite Aid, Walgreens and Walmart, for a tip. You can besides mail in a check for detached. This card besides has an annual fee.

Consider your options

If you ’ ra working to build your credit, the Capital One Platinum Secured Credit Card is one of the better choices available. Its elastic security deposit requirements, broken fees and upgrade likely make it a solid starter poster. No matter which card you choose, using a secured credit rating card responsibly can help you build your credit score. Keep it up, and you should be able to graduate to a card with lower fees and interest, greater rewards — and no security lodge at all .

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Category : Finance

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