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- Capital One Secured Review
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When it comes to secured credit cards, the Capital One® Secured Mastercard® is without a doubt one of the very best on the market today. This card boasts no annual fees and a deposit requirement as low as $49, making it a top pick if you want to open a secured card account without breaking the bank. In the Capital One® Secured Mastercard® review below, I'll explain why I believe this card is one of the best secured cards out there.
Capital One® Secured Mastercard®
Rating image, 4.5 out of 5 stars.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor.
What We Like About The Card
Build your credit responsibly with this top-of-the-line secured credit card. It comes with a low initial security deposit and no annual fee, making it a top pick if you want to open a secured card account without breaking the bank.
Rewards
N/A
Annual Fee
$0
Intro APR
Purchases: N/A
Balance Transfers: N/A
Ongoing APR
26.99%, variable
Welcome Bonus
N/A
Highlights
- No annual fee, and all the credit building benefits with responsible card use
- Unlike a prepaid card, it builds credit when used responsibly, with regular reporting to the 3 major credit bureaus
- Access to an authorized bank account is required to make your $49, $99 or $200 refundable security deposit
- Make the minimum required security deposit and you'll get an initial credit line of $200. Plus, deposit more money before your account opens to get a higher credit line
- Get access to a higher credit line after making your first 5 monthly payments on time with no additional deposit needed
- Easily manage your account 24/7 with online access, by phone or using our mobile app
- It's a credit card accepted at millions of locations worldwide
Full Capital One Secured review
Top perks
No annual fee: This card already has a big leg-up on many of its peers because it doesn't have an annual fee. Considering that some secured credit cards have annual fees and monthly maintenance fees that can add up to more than $200 per year, the Capital One® Secured Mastercard® is a compelling bargain due to the fact it doesn't have either of these things.
Low deposit requirement: The Capital One® Secured Mastercard® has three different deposit requirements, depending on your creditworthiness. To get a $200 credit limit, you will have to deposit $49, $99, or $200, depending on your income and credit score. Many other secured cards require you to deposit an amount equal to your credit line ($200 for a $200 credit line, for example) regardless of your creditworthiness. The potential to get started with a smaller deposit than other cards makes this a top choice.
You can graduate to an unsecured card: With as few as five on-time payments, your credit limit on your Capital One® Secured Mastercard® can be increased above $200. In addition, you may be eligible for graduation, which happens when the card issuer returns your security deposit, thus turning your secured card into an unsecured credit card. This card could easily be one that you have for the rest of your life, enabling you to eventually have years of positive credit history buoying your credit report.
What could be improved
No 0% intro APR period: Given that you have to make a security deposit to get a secured credit card, it would be nice if that secured card offered a 0% intro APR period on purchases. Admittedly, this feature is rare with secured cards, so it's hard to criticize the Capital One® Secured Mastercard® for not offering it.
No cash-back rewards: I don't consider rewards to be a make-or-break feature for secured cards, considering so few actually have rewards programs, but a cash-back rewards program would be a welcome addition to the Capital One® Secured Mastercard®.
No free FICO® Score: Unlike some other secured credit cards, the Capital One® Secured Mastercard® doesn't offer free access to a true FICO® Score. Capital One offers an app known as CreditWise®, which allows you to see a simulated credit score that may differ from your true FICO® Score, although it’s still useful. A free FICO® Score would add a lot of value to this card.
Suggested credit score
Even if you have no credit history or bad credit (a score below 500), it's likely you can qualify for a secured credit card. The deposit you put up to open a secured credit card protects the card issuer in the event you fail to repay your balances. Your income may be the only limitation to getting approved, as the terms and conditions for the Capital One® Secured Mastercard® state that your monthly income must exceed your monthly rent or mortgage payment by at least $425.
Alternatives to consider
- If you want a secured credit card that earns rewards: It can be very difficult to find a secured credit card that offers any sort of rewards program, but the Discover it® Secured card does. It earns 2% cash back at gas stations and restaurants on up to $1,000 in purchases each quarter and un unlimited 1% cash back on everything else. However, this card does come with a minimum deposit requirement of $200.
- If you want a credit-building credit card that doesn't charge a security deposit: The Petal® 2 "Cash Back, No Fees" Visa® Credit Card is another credit card designed for building credit that doesn't charge an annual fee or require a security deposit. Petal looks at more than just your credit score -- they may also consider data from your bank account such as income and on-time bills paid. The first step of the application is a pre-approval process that will let you know your chances of qualification without any impact on your credit history. This card also offers cash back.
As of Jan. 05, 2021
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| Discover it® Secured | Petal® 2 "Cash Back, No Fees" Visa® Credit Card |
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Rating image, 5.0 out of 5 stars.
5.0 stars
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. |
Rating image, 4.5 out of 5 stars.
4.5 stars
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. |
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Apply Now
On Discover's Secure Website. |
Apply Now
On Petal's Secure Website. |
| Read Full Review | Read Full Review |
| Rates & Fees | |
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Credit Rating Requirement: |
Credit Rating Requirement: |
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Welcome Bonus: Dollar-for-dollar match of all cash back earned the first year |
Welcome Bonus: N/A |
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Rewards Program: Cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter. Unlimited cash back on all other purchases - automatically |
Rewards Program: 1.5% cash back after making 12 on-time monthly payments. 1% cash back on purchases right away |
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Intro APR: Purchases: N/A Balance Transfers: 10.99%, 6 months |
Intro APR: Purchases: N/A Balance Transfers: N/A |
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Regular APR: 22.99% Variable APR |
Regular APR: 12.99% - 26.99%, variable |
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Annual Fee: $0 |
Annual Fee: $0 |
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Highlights:
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Highlights:
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Apply Now
On Discover's Secure Website. |
Apply Now
On Petal's Secure Website. |
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This credit card is right for you if:
Used correctly, a secured card can help you build toward excellent credit. But used irresponsibly, a secured card can harm your credit score and result in costly fees and interest on your balances. If all of the following statements apply to you, then the Capital One® Secured Mastercard® should make the short list of credit cards to apply for:
- You have bad credit or no credit and/or limited income.
- You have $49 to $200 to open an account.
- You will always pay on time and in full.
- You won't overspend.
About the Author
Elizabeth is a personal finance writer specializing in credit cards, debt repayment, and small business. Her work has appeared on The Motley Fool, MSN Money, Yahoo! Finance, and Business Insider. She’s an avid credit card points collector and perpetual traveler currently living in Costa Rica.
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