Capital One Secured MasterCard: If you are looking for a credit card which will help you rebuild you rebuild your credit score? Then I have just the answer for you. Capital One Secured MasterCard allows you rebuild your credit score without paying an annual fee. It also requires no much barrier or entry fee while registering.
The Capital One Secured MasterCard is a strong option for people who are recovering from bankruptcy or otherwise have bad credit. Unlike many secured credit cards, it’s possible to qualify for a credit limit that exceeds the amount of your security deposit. There’s no annual fee associated with the Capital One Secured Master Card.
Capital One Secured Master Card has a lot to benefit to individuals, as a well popular card looking at it from all angle so as to help you make the right decision. And giving you in full details what it has to offer to you. Read on.
Capital One Secured Master Card Review
Rates & Fees
- Regular APR: 26.99% (variable)
- Annual Fee: None
- Balance transfer fee: None
- Foreign transaction fee: None
- Cash advance APR: 26.99% (variable)
- Cash advance fee: $10 or 3% (whichever is greater)
- Late payment fee: Up to $39
- Penalty APR: None
- Returned payment fee: None
This card is best for people who can’t get approved for traditional credit cards, and who want to improve their credit score. This card is also good for people who don’t have a lot of money saved to put down for a deposit.
I also recommend this card for people who are able to pay their bill in full each month. Not only will this help your credit score, but you’ll also avoid paying the high-interest charges that come with this card.
On the other hand, the Capital One Secured Master Card has a high APR, no promotional APR, no bonus for new card members, and no rewards program to pay you back for spending.
- Capital One MasterCard has no annual fee
- Partial security deposit for some cardholders
- Qualifying is easy with a security deposit, even if you have poor or limited credit
- Pick your own monthly payment
- Potential to access a higher credit limit than your security deposit
- Reports to all three major credit bureaus (Experian, Equifax, and TransUnion)
- Capital One has No signup bonus
- No opportunity to earn rewards
- High interest rate
- No 0% introductory APR
What The Capital One MasterCard has to Offer
Capital One has some significant credit-building benefits over other secured cards, including the chance to earn a credit line higher than the collateral pledged as well as some travel perks. Here are some of the biggest benefits;
Credit Limit Increases
The Capital One Secured Credit Card offers provides an initial credit line of $200, but your deposit amount may be either $49, $99, or $200 depending on your creditworthiness. This means some cardholders will actually start with a higher credit line than their collateral, which isn’t common with secured cards.
Cardholders also have the option to make an additional deposit before the account opens to get an even higher credit line. After demonstrating responsible card use by making five on-time monthly payments, the card issuer will review your account for another credit line increase.
A larger credit line is good for your credit score, as credit utilization is one of the most important factors in determining your score.
The Secured MasterCard from Capital One offers travel perks that can be found with some unsecured cards. Some of these perks include:
- 24/7 travel assistance
- Car rental insurance
- Travel accident insurance if you use your card to charge your trip
- No foreign transaction fees
- You’re never liable for charges made if your card is lost or stolen.
Enjoy additional warranty protection for free on eligible items purchased with the card. This benefit also reimburses you the price difference on eligible items when you find a lower price within 60 days from the date of purchase.
Comparisons to Other Cards
Capital One Secured MasterCard vs. Discover it Secured
Annual fee: The Capital One Secured MasterCard and the Discover it Secured have an annual fee of $0.
Rewards: The Capital One Secured MasterCard has no rewards system. While, Discover offers 2% cash back at restaurants and gas stations on up to $1,000 in combined purchases each quarter. The Discover it Secured offers unlimited 1% cash back on all other credit card purchases.
Sign-up bonus: The Capital One Secured MasterCard does not have a sign-up bonus. While Discover will automatically match all cash back new cardholders have earned dollar for dollar at the end of the first year.
Benefits: The Capital One Secured MasterCard offers benefits including fraud coverage, personalized payment plans, 24-hour customer service, auto rental insurance and extended warranty. While Discover gives users free access to a monthly FICO credit score to keep track of their credit history.
Capital One Secured Mastercard vs. SDFCU Savings Secured Visa Platinum Card
Annual fee: The Capital One Secured MasterCard and the SDFCU Savings Secured Visa Platinum Card charge an annual fee of $0.
Rewards: The Capital One Secured MasterCard has no rewards system; while the SDFCU Savings Secured Visa Platinum Card has a Flexpoints reward program that earns one point per dollar.
Sign-up bonus: Neither the Capital One Secured MasterCard nor the SDFCU Savings Secured Visa Platinum Card has a sign-up bonus.
Benefits: Capital One Secured MasterCard cardholders have access to a price protection plan, a fraud coverage plan and 24/7 customer service; while SDFCU offers an auto rental collision damage waiver, lost luggage reimbursement and card-based life insurance.
After knowing all of that about Capital One Secured MasterCard, below are some basic point to note while using the card;
- Make all payments on time to avoid incurring penalty fees.
- Consider increasing your initial credit line by making a higher-than-required security deposit.
- Avoid taking cash advances, the fees for which can quickly increase your total amount owed.
- Pay your regular balance in full every month to avoid accruing higher-than-average interest charges.