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.
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.
Apply without a credit check
Get instant access to funds
You don't need to meet an income requirement to qualify
No interest charges
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)
Costs
0% + monthly fee from $2
Loan Amount
$20 – $250
Loan Term
Flexible
Credit Check
No
Turnaround Time
Immediately
Requirements
KOHO account—access higher loan amounts over time by using KOHO for everyday spending, repaying your monthly fees and using its other services
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.
Can help you build credit history
No interest charges
Apply without a credit check
No late payment fees
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
Costs
0%
Loan Amount
$30 – $250
Loan Term
31 days, extendable
Credit Check
No
Turnaround Time
1-30 minutes with a paid membership or 1-3 business days with a free membership.
Requirements
You must be 18 years or older and have a minimum monthly income of $1,000.
Bree is another app that offers zero-interest cash advances, but of up to $500. 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.
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
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
Costs
0%
Loan Amount
$20 – $500
Loan Term
Next pay cycle (90 days max)
Credit Check
No
Turnaround Time
Receive funds within 5 minutes with express delivery (the fee is based on the advance amount) and within 1 to 3 business days for standard delivery.
Requirements
You must have a bank account with regular income deposits and a Visa or Mastercard debit card with a CVV
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.
Can help you build credit
Instant virtual card
Earn 1% cashback on gas and groceries
Manage your card via a highly rated mobile app
APR of 19.99%-29.99% on purchases
$7.99 monthly fee for Build membership (waivable)
Monthly spend limit applies to cashback
Annual Fee
$96
Purchase APR
Cash Advance Rate
22.99%-31.99%
Balance transfer APR
N/A
Welcome offer
N/A
Rewards
The Neo Secured Credit Card lets you earn cash back at Neo food, clothing, footwear and homeware retailers partners. Earn 1% cash back on gas and groceries (3% cash back with a $5K+ Neo Money account balance or 4% with a $10K+ balance). Premium members earn an additional 2% cash back on gas and groceries. Pay $7.99 per month for the standard or Premium plan.
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.
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
Minimum deposit of $500
Doesn't pay cashback
Annual Fee
$0
Purchase APR
19.99%
Cash Advance Rate
19.99%
Balance transfer APR
N/A
Welcome offer
N/A
Rewards
N/A
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 7,800+ Trustpilot reviews, while Bree has an average of 4.7/5 based on 6,400+ 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 – $500.
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
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.
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
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.
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.
Tim Falk is a freelance writer for Finder. Over the course of his 15-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.
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