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No Credit – Poor
Your credit score is determined largely by your history of whether you make payments on time or not. It also factors in your credit age as well as how many lines of credit you have access to among other factors as well. If you currently have zero credit history or poor history from a troubled past, it can be hard to qualify for most credit cards. This makes the Capital One Platinum Secured Credit Card a good option to help you show lenders you are responsible with credit and start building your score in a lower risk environment.
The card has no annual fee and can help you build credit over time while automatically considered for a higher credit line in as little as 6 months. You can deposit more money before your account opens to get a higher credit line.
The card requires security deposit of $49, $99 or $200 refundable minimum security deposit. Capital One will monitor your account, and as you use it responsibly by doing things like making on-time payments, you may be able to earn back your deposit as a statement credit.
- Build Your Credit
- No Foreign Transaction Fee
- No Annual Fee
- Flexible Security Deposit
- No Rewards
- Put Down a Refundable Deposit
- High APR Rate
Does the Capital One Secured card report payments to all credit bureaus?
Capital One will report your payment activity to all three of the major credit bureaus. Additionally, both provide a platform to monitor your credit score, so you can keep track of any changes as you use the card and work on other ways to improve your credit.
How long should I use the card to improve my credit score?
A good rule of thumb is three to six months. However, Capital One will review your account after six months and Discover after seven months to determine if your credit score has increased sufficiently to upgrade to an unsecured card. So, you should be looking at using the card for at least six or seven months.
Can I add an authorized user?
Yes, the Capital One Secured card allows you to add an authorized user to your account. This will allow a family member or friend to have their own card linked to your account.
How long does it take for card approval?
Capital One offers pre approval, which means that you can get an approval decision in a matter of minutes. If you decide to proceed, there should be a minimal delay and you can expect your new card in seven to 10 days.
Table of Contents
Let’s take a look at the benefits of the Secured credit card and see if it’s the right one for your wallet or not.
The major benefit of getting a secured credit card is to build your credit history and increase your credit score by showing lenders you make payments on time and are responsible with borrowed money.
Secured credit cards give you smaller credit lines to help you build the habits needed to grow your score while keeping the risk level down so you can’t put yourself in lots of credit card debt.
With the Capital One Secured card your credit counts towards all 3 credit bureaus like a normal credit card and you’ll find many different tools on Capital One’s website to help you monitor and grow your score.
You can also increase your credit limit after paying on time successfully for your first 5 payments.
It can be quite risky carrying lots of cash while traveling overseas. It’s an advantage to be able to make purchases with your credit card but most charge transaction fees on foreign purchases.
Luckily, the Capital One Secured credit card has no foreign transaction fees so you can spend money on your credit card outside the country without the stress of extra fees.
Enjoy the benefit of having no annual fees with the Capital One Secured credit card. This can save you $39 to $299 annually considering that is what a lot of credit cards charge for their annual fee.
Instead of an annual fee, however, you’ll have a security deposit to put down but it is refundable so it’s not lost money like an annual fee.
Most credit cards will offer a credit line equal to your security deposit, but with Capital One you can qualify (based on your credit score) to put less down than your credit limit.
For example, you may qualify to put $49 or $99 instead of the full $200 on a $200 secured credit line. Another perk is Capital One will let you pay your security deposit over time in installments if you can’t put it all down upfront at once.
Let’s take a look at the drawbacks of the Platinum credit card and see if it’s the right one for your wallet or not.
Unfortunately, the Capital One Secured card offers no cash back rewards, no sign-up bonus, and no other rewards incentives.
This can be a drawback when you consider alternative secured cards that offer 1% cash back and even 2% cash back in some cases like the Discover It Card.
In order to use the Capital One Secured credit card, you’ll be required to open an account and put down a refundable deposit.
However, the larger deposit you put down, the larger your credit line limit will be up to the amount you are approved for.
With any credit card, the goal is to pay off your balance every month. However, life happens and sometimes you may not be able to pay off your statement balance in full.
If this happens with the Capital One Platinum Secured you’re going to feel the sting as you get hit with a 30.49% (Variable) APR which is high compared to other secured credit cards.
How To Apply For Capital One Platinum Secured?
Visit the Capital One Platinum Secured home page, and click on “Apply now”.
This takes you to the next page, where you can fill in your “Personal Information” such as your Names, date of birth etc.
Next is your contact and financial information.
Lastly, ensure you read through the important disclosure page to know your eligibility, fees, costs, rates, etc.
Then click on “continue” to complete the process.
Is the Capital One Platinum Secured Right for You?
The Capital One Platinum Secured Card is one of the best secured credit card options available for building credit.
You can put a minimal security deposit down payment compared to most cards and get access to a credit line larger than the security deposit which is rare.
Your line can also increase once you’ve made 5 successful payments which helps your credit score by lowering your credit utilization ratio.
It’s a good option to increase your credit responsibly before moving up to a rewards card once you can qualify.
Compare The Alternatives
There are several credit cards that could serve as an alternative to someone with average, poor, or no credit.
Like the Capital One Platinum Secured Card, these secured credit cards offer a chance to build credit responsibly with minimal security deposits. Let’s take a brief look at them and see if one is a better option for you.
There are no minimum income requirements. The Capital One Platinum Secured card is suitable for those with poor credit, so your income is simply one factor the card issuer will assess to determine if you qualify for the card.
Capital One has a pre approval option. You can check if you qualify for the cards in a matter of minutes with a simple online form, without impacting your credit with a hard credit pull.
The Capital One initial credit limit requires a deposit of $49 to $200, depending on your creditworthiness. However, you can deposit more to increase your credit limit up to a maximum of $1,000.
The top reason not to get the Capital One Secured is if you’re looking for a card that offers rewards. This is a very basic secured credit card that aims to help you build or rebuild your credit, but there are no other major benefits.