If you’re looking to build your credit while staying on budget, a secured credit card might be just the ticket. A secured card requires a security deposit as collateral; if you don’t pay your bill, the issuer can take your deposit. However, these cards typically have much smaller security deposits than unsecured cards.
To help you understand which of these cards may be best for you, we’ve put together this useful guide to the pros and cons of Capital One-secured credit cards. In it, you’ll find information about the ins and outs of these financial products so that you can decide which one is right for you. Keep reading to find out more!
What Is a Capital One Secured Credit Card?
A Capital One secured credit card is a type of credit card offered by the financial institution getmyoffer.capitalone.com scan code. A secured card requires a security deposit as collateral; if you don’t pay your bill, the issuer can take your deposit. These cards typically have much smaller security deposits than unsecured cards. As the name implies, to qualify for a secured card, you need to make a deposit that serves as your security.
This deposit is usually equal to your credit line. You can use a secured card to build your credit, as long as you make payments on time and maintain a low balance. A secured credit card can be an excellent stepping stone for people who don’t have any credit at all, or for those who have had credit and then fell into hard times and now want to get back into the game.
How to Get a Capital One Secured Credit Card
To apply for a Capital One secured card, you’ll need to go to the Capital One website and fill out a short application. You’ll have to provide your name and address, as well as any other information that’s requested in the application. You’ll also have to give some basic information about your financial situation and current credit situation. If you have a good credit score, you may be able to get a higher credit line than if you have a lower score.
And if you make your deposit in installments over time, you may be able to get a lower deposit than if you make the deposit at once. There are no guarantees, though, so make sure you understand the terms and conditions before you apply.
Capital One Security Review
Capital One was founded in 1994 and is headquartered in Virginia. The credit card issuer is a subsidiary of the Japanese financial services corporation SoftBank Group Corporation. All of Capital One’s credit cards, including its secured credit cards, are available to residents of all 50 states. Capital One has an established history of offering secured credit cards to consumers with low or no credit history.
Over the years, the company has evolved its secured credit card product line to make it easier for consumers to get approved for their credit cards. The company secured its position as a leader in the secured credit card market with a host of different products. Consumers can choose between secured credit cards with low deposits, secured credit cards with high deposits, and unsecured credit cards with low annual fees. In addition to its array of credit cards, Capital One provides many other financial services as well. Customers can manage their accounts online or by phone.
Benefits of a Capital One Secured Card
A good number of cardholders will use a secured credit card to build their credit history. If you’re one of them, a Capital One Secured card can get your credit history and then lead to an unsecured card. If you have a long-term financial goal in mind like buying a house or a car, a secured card can be a stepping stone to help you get there.
You can use a secured card to show that you can be trusted with a credit card and then move on to an unsecured card with a lower credit limit as you improve your credit score. If you have a lower credit score, you may have a harder time getting approved for an unsecured credit card. If so, a secured card can give you a foot in the door with credit card companies.
Costs of a Capital One Secured Card
As we mentioned earlier, the one major drawback to a Capital One secured card is the high deposit requirement. These cards don’t come cheap! The security deposit for a card ranges from $200 to $49,999. The amounts will depend on which Capital One card you choose. For instance, the Capital One Platinum Secured Credit Card requires a $29,995 deposit, while the Capital One Secured MasterCard requires a $200 deposit. When you consider that the typical credit card requires a security deposit of under $200 and that you can get a Capital One card with no annual fee, though, it’s easy to see why so many people choose Capital One.
Final Words: Should You Get a Capital One Secured Card?
We hope we’ve convinced you that a Capital One-secured card is a good choice for building your credit. To recap, these cards are best for people with low or no credit, as well as people who want to buy something expensive like a car, but can’t get a traditional loan. If you’re looking to get a secured card, we recommend you choose Capital One. The company offers a wide range of products designed to meet the needs of almost any cardholder. And with no annual fee, a low minimum deposit amount, and the ease of managing your account online, it’s easy to plan for the future with a Capital One-secured card!