First Credit

Capital One Secured MasterCard Review

If you have a poor credit score or no credit history at all you may be used to being turned away when applying for regular credit cards. If so you should stop damaging your credit worthiness further by having multiple failed checks against your name, and look into getting a secured credit card to boost your rating. Secured credit cards report to the three major credit bureaus (Experian, Transunion, and Equifax), meaning there will be solid proof of your improvements if you keep up with payments, and do not go over your credit limit. As you steadily improve your credit score you will be able to apply for more traditional unsecured cards.

Capital One is one of the biggest credit card lenders in the USA, and their Secured MasterCard gives the cardholder the chance to rebuild their credit score. The card is one of the very best on offer and has virtually nothing going against it, making it a shrewd choice for those looking to get back on to the borrowing ladder.

Like all secured credit cards, the amount of credit you receive is directly linked to the amount of money you deposit, let’s say you pay a $500 deposit, the credit will be $500. Credit limits range from a minimum of $200 to a maximum of $3000, while there is a minimum refundable security deposit of $49, $99, or $200 depending on conditions in the application process.

Being one of the country’s leading lenders means that Capital One is FDIC insured, meaning that in the unlikely event the bank goes into bankruptcy, you will be able to claim your deposited money back in full from the government.

The Capital One Secured card carries MasterCard meaning that the card can be used in any country or retail destination that takes MasterCard. This accounts for almost all major retailers and outlets in most of the world’s nations, as MasterCard is a worldwide name.

There are no application fees on this card, where as some secured credit cards hit you in the application process, with the Capital One Secured MasterCard you will pay no opening fees.

If you can display good credit behaviour as a card holder, then you may be eligible to move to a regular card in the Capital One range and not be subject to any additional charges.

There are a few issues with this card however. Such as even though there is no fee for balance transfers, there is a high APR of 22.9%. There is an annual fee of $29, and although it is never nice to pay any annual fee, for the sector the Capital One Secured MasterCard fares very well. Many secured credit cards will charge high annual fees, sometimes in excess of $100.

With so much to offer the Capital One Secured is a very good choice for those wishing to improve their credit worthiness, while some of the options light a path to being able to get a regular unsecured card in the future. The card is far from perfect, but still proves to be one of the better secured credit cards available. See also Bad Credit Credit Cards.