5 Capital One Secured Mastercard Alternatives

The Capital One Secured Mastercard is a no-annual-fee credit card you can use to build credit. It’s worth checking out if you’re a student or a newcomer to Canada with limited credit, but it’s far from the only option if you need extra cash. From other secured credit cards to interest-free cash advance apps, keep reading to compare five alternatives to the Capital One Guaranteed Secured Mastercard.

Costs	Loan Amount	Loan Term
KOHO
Finder Rewards Exclusive KOHO Cover	0% + monthly fee from $2	$20 - $250	Flexible	ENDS SOON! $75 DIGITAL VISA CARD REWARD 1 Join Finder 2 Open & fund a KOHO account 3 Get a digital Visa card from Finder on or before June 16 Ends by. T&Cs apply.	Go to siteView details Compare product selection Compare	loading	Why we like it KOHO is best known for its hybrid chequing/savings account, but it also offers cash advances with KOHO Cover. There are no credit checks or minimum income required to qualify for an advance, and you don't need to provide a security deposit either. Best of all, you won't pay any interest on the money you borrow. And with the flexibility to repay the advance at any time, Cover is well worth a look when you need a small loan to help you avoid bank overdraft fees. Pros & cons Pros Apply without a credit check Get instant access to funds You don't need to meet an income requirement to qualify No interest charges Cons Won't help you build credit You can only borrow up to$250 Monthly Cover subscription fee from $2 plus monthly KOHO subscription fee (waivable on some plans)
Nyble
Nyble Credit Line	0%	$30 - $250	31 days, extendable	Use code CFIND1J to get 500 extra points and a $5 higher approval. T&Cs apply.	Go to siteView details Compare product selection Compare	loading	Why we like it Like the Capital One Secured Mastercard, Nyble can help you build credit. But Nyble isn't a secured card—instead it offers interest-free cash advances of up to $250. There are no credit checks, so bad or limited credit won't stop you getting funded, and the 31-day repayment period is extendable if needed. And because Nyble reports to the credit bureaus, making on-time payments will help you build credit. This perk is available for all Nyble borrowers, regardless of whether you've signed up for a premium subscription or not. Pros & cons Pros Can help you build credit history No interest charges Apply without a credit check No late payment fees Cons Small maximum loan amount of $250 Making late payments could hurt your credit score Monthly membership fee applies if you want instant funding and other perks
Bree
Bree Early Pay	0%	$20 - $750	Next pay cycle	Refer a friend and get a $20 credit limit increase on your next withdrawal. T&Cs apply.	Go to siteView details Compare product selection Compare	loading	Why we like it Bree is another app that offers zero-interest cash advances, but of up to $750. It doesn't report to the credit bureaus, however, so it won't help you build credit. But what it will do is let you apply online or via a mobile app, get funded without a credit check, and get your advance without having to pay any fees. You'll get an instant decision too, and if you don't mind paying extra fees, instant funding is also available. Pros & cons Pros Apply in a matter of minutes No credit checks You can get funded and pay no mandatory fees No interest charges to worry about Lots of positive customer reviews Cons Monthly subscription fee for instant transfers and other perks A transfer fee also applies to instant transfers Doesn't report payments to the credit bureaus

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Welcome Offer	Rewards	Annual Fee
Neo Secured Mastercard
Neo Secured Mastercard	N/A	Average of 5% cash back	$95.88	Go to siteView details Compare product selection Compare	loading	Why we like it The Neo Secured Mastercard is a direct competitor to the Capital One Guaranteed Secured Mastercard. Offering a credit limit of up to $10,000, the card can be used anywhere Mastercard is accepted. You'll earn 1% cashback on gas and grocery purchases, plus take advantage of cashback offers at over 10,000 partners. And because your payments are reported to Equifax and TransUnion, the Neo secured credit card can potentially boost your credit score. Pros & cons Pros Can help you build credit;Instant virtual card Earn 1% cashback on gas and groceries Manage your card via a highly rated mobile app Cons APR of 19.99%-29.99% on purchases $7.99 monthly fee for Build membership (waivable) Monthly spend limit applies to cashback
Home Trust Secured Visa
Home Trust Secured Visa	N/A	N/A	$0	View details Compare product selection Compare	loading	Why we like it Like the Capital One Secured Mastercard, the Home Trust Secured Visa is well worth checking out if you need to build credit. With payments reported to the credit bureaus, you can use this card to build your credit history and improve your credit score. Credit limits can reach up to $10,000, paired with a competitive 19.99% rate and no annual fee. Alternatively, if you'd prefer an even lower 14.90% interest rate on purchases, you can opt to pay a $59 annual fee. Pros & cons Pros Competitive interest rate of 19.99% No annual fee Could help improve your credit score You can get a lower interest rate by paying an annual fee Cons Minimum deposit of $500 Doesn't pay cashback

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How does the Capital One secured card work?

The Capital One Guaranteed Secured Mastercard requires you to provide a security deposit, which then becomes your credit limit. You can then use your card to pay for purchases anywhere that Mastercard is accepted.

The Capital One Secured Mastercard has no annual fee, but an interest rate of 29.9% (21.9% in Quebec) applies to purchases, balance transfers and cash advances. The card also provides added benefits like purchase assurance, extended warranty, travel accident insurance and baggage delay insurance.

Capital One also reports your account activity to the Equifax and TransUnion credit bureaus. So if you can stay within your credit limit and make on-time payments, you’ll be able to build credit.

What is the limit of the Capital One Secured Mastercard?

The credit limit of your Capital One Secured Mastercard varies depending on the security funds you deposit. The minimum deposit is $75, while the maximum credit limit is $2,500. So even if you provide more than in security funds, your credit limit will stay at $2,500.

What do Capital One secured credit card reviews say?

The Capital One Guaranteed Secured Mastercard has an average rating of 4.3/5 from over 7,500 reviews on the Capital One website.

Positive reviewers praise factors such as the card’s credit building capabilities, Capital One’s helpful customer service and the provider’s mobile app that makes it easy to manage their card.

Negative reviewers mention issues such as low credit limits, the lack of rewards and poor customer service.

What do cash advance app reviews say?

Popular cash advance apps have picked up plenty of positive feedback online. For example, Nyble has an average rating of 4.8/5 stars based on 8,600+ Trustpilot reviews, while Bree has an average of 4.8/5 based on 7,300+ Trustpilot reviews.

People who leave positive reviews mention factors such as the quick and easy access to funds, user-friendly apps and being able to access funds to cover emergency expenses.

Negative reviewers complain about fees, smaller loan amounts than advertised and poor customer service.

How do cash advance apps compare with secured credit cards?

There are a few key differences between cash advance apps and secured credit cards:

• Security funds. While secured credit cards require you to provide a security deposit, cash advance apps do not.
• Credit checks. You will typically need to undergo a credit check to get a secured credit card, but cash advance apps do not carry out credit checks.
• Credit limit. Secured cards offer credit limits of up to $10,000, but cash advance apps have much lower maximum loan amounts of $250 – $750.
• Interest. Cash advance apps don’t charge any interest on the money you borrow, while secured credit cards commonly charge interest ranging from 19.99% – 29.99%. However, you can avoid interest charges if you pay off your card balance during the interest-free grace period.
• Fees. Some secured credit cards have annual fees, others don’t. Cash advance apps don’t have setup fees and don’t charge late fees, but you may need to pay a subscription fee to get instant transfers.
• Credit building. Secured credit card providers report your card activity and payments to the credit bureaus, allowing you to build credit. Nyble also reports to the credit bureaus, but other cash advance apps do not.

Which Capital One secured credit card alternative should I choose?

The best Capital One Secured Mastercard alternative for you depends on why you’re considering applying for a card in the first place.

If your main goal is to build credit, you’ll need to compare secured credit cards with the Nyble cash advance app. Consider interest rates and the cost of borrowing when making your choice.

But if you just want a small loan to help cover an unexpected cost, and to qualify for funding without a credit check, an interest-free cash advance may offer a more affordable solution.

Bottom line

There are several options worth checking out if you’re searching for an alternative to the Capital One Secured Mastercard. The right choice for you will depend on your financial needs and goals, so compare secured credit cards and cash advance apps to find the product that’s right for you.

Frequently asked questions

• Does the Capital One secured credit card build credit?

  Yes, the Capital One Guaranteed Secured Mastercard can help you build credit. If you're approved for and use this card, Capital One will report details of your spending and repayments to the credit bureaus. So if you don't exceed your credit limit and you ensure that you make on-time payments, you'll be able to build credit history and potentially improve your credit score.

• Does the Capital One Secured Mastercard offer guaranteed approval?

  Capital One says approval is guaranteed if you meet the following requirements:

  • You're the age of majority
  • Your credit profile isn't frozen
  • You're not prohibited from accessing credit for legal or regulatory reasons
  • You don't already have a Capital One account (or a pending application for one)
  • You haven't applied for a Capital One account more than once in the last 30 days
  • You haven't had a Capital One account that was not in good standing in the last 12 months
  • You aren't in legal recoveries with Capital One

• Does the Capital One Secured Mastercard provide any insurance coverage?

  Yes, this Capital One secured credit card comes with purchase insurance, extended warranty coverage, car rental collision/loss damage waiver insurance, common carrier travel accident insurance and baggage delay insurance. It also offers a Price Protection Service, which offers a refund of up to $100 when an item you buy with your card is discounted within 60 days of your purchase.

• What is the best cash advance app for me?

  Nyble, Bree and KOHO Cover all offer interest-free cash advances with no credit checks. However, the maximum loan amount, fees, eligibility criteria and repayment terms vary between apps, so the best provider for you will depend on your personal circumstances and needs. See how these cash advance apps stack up against one another in our Nyble vs Bree vs KOHO guide.

To make sure you get accurate and helpful information, this guide has been edited by Leanne Escobal as part of our fact-checking process.

Written by

Tim Falk

Writer

Tim Falk is a freelance writer for Finder. Over the course of his 20-year writing career, he has reported on a wide range of personal finance topics. Whether you're investing in stocks and ETFs, comparing savings accounts or choosing a credit card, Tim wants to make it easier for you to understand. When he’s not staring at his computer, you can usually find him exploring the great outdoors. See full bio

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