Looking for an easy way to improve your credit score? This secured card could be an option.
If you have poor or no credit, a secured credit card could help you establish or rebuild your credit history through responsible spending that includes on-time payments.
The Capital One Secured Mastercard is just one such a card — and it comes with no annual fee. You get a starter credit limit of $200 in exchange for a refundable security deposit of $49, $99 or $200 based on your credit score. If you make a larger deposit before your account opens, you may be eligible for a higher credit limit of up to $3,000.
|Product Name||Capital One Secured Mastercard|
|Balance Transfer Rate (not intro)||24.99% variable|
|APR for Purchases ( Purchase Rate )||24.99% variable|
|Cash Advance Rate||24.99% variable|
|Interest Free Period|
The interest-free period on purchases is the period or number of days you do not have to pay interest on your card purchases. You will be charged interest either from the day you make a purchase or from the statement date, unless you pay the closing balance in full by the due date (or within the interest-free period) on your statement.
|Up to 25 days|
|Foreign Currency Conversion Fee (MC)|
Foreign currency conversion fees are charged when you make a transaction that is converted by a credit card network, such as MasterCard, Visa or American Express, from Australian dollars to a foreign currency. You’ll also incur a currency conversion fee if you make a purchase or obtain a cash advance in Australian dollars while overseas or shopping online with a foreign merchant or financial institution.
|0% of transaction value|
|Minimum Age||18 years of age|
|Min credit limit|
This is the lowest credit card limit that you can request. It is possible to apply for a higher credit card limit but not a lower one than this figure.
|Max credit limit|
This credit limit may not be issued to you immediately on application. This is the maximum credit limit for this card which must be applied for or offered to you after you are approved and have already opened the account.
|Late Payment Fee||$35|
|Cash Advance Fee||$10 or 3% of the amount of each cash advance, whichever is greater|
Is this card for me?
The Capital One Secured Mastercard can offer you many benefits that include:
- Ability to build your credit. The Capital One Secured Mastercard reports to the three major credit bureaus, providing you with the opportunity to build your credit with responsible use.
- No annual fee. You won’t pay a fee to use it.
- No foreign transaction fee. If you’re a frequent traveler, use this card at locations worldwide.
- 24/7 account access. Get the details of your account online, by phone or through Capital One’s mobile app.
How can I make this card’s high APR worth it?
The Capital One Secured Mastercard is a good way to build credit if you use it responsibly. To avoid paying the high 24.99% variable APR on all of your purchases, challenge yourself to pay off your statement balance each month. After you’ve made on-time payments for five months in a row, you could be eligible for other cards that come with lower APRs and even offer rewards.
What to watch out for
The Capital One Secured Mastercard can help you build your credit to meet your financial goals. But you’ll want to spend only what you can afford to pay off each month to avoid its high APR.
- Security deposits. Though you won’t pay an annual fee, you’re required to pay a $49, $99 or $200 security deposit based on your credit score.
- Not intro APR. Once you’re approved, a high ongoing APR applies immediately.
- No rewards. Like most secured cards, this card offers no points or cash rewards.
Compare other Capital One credit cards
How to apply for the Capital One Secured Mastercard
Always consider your options and your financial situation before you apply for a credit card.
To apply for a Capital One Secured Mastercard, you’ll need to provide your:
- Full name and physical address (PO boxes are not accepted)
- Social Security number and date of birth
- Estimated gross annual income
- Checking or savings account information
- Rent or mortgage amount paid each month
Start by visiting Capital One’s website and choosing the Capital One Secured Mastercard from the “Average or Building Credit” card category:
Complete and submit your application for a Capital One Secured Credit Card.
Once approved, Capital One will let you know your required security deposit amount, and you’ll receive your card in two to three weeks.
Your approval for a Capital One Secured Credit Card is guaranteed as long as you:
- Meet the age requirements according to your state.
- Haven’t applied for a Capital One account in the past 30 days or held a Capital One account that was not in good standing in the past 12 months.
- Don’t have an existing Capital One account or a pending application.
I got the card. Now what?
Your card won’t be activated until you make your minimum security deposit. You can pay this amount all at once or over time online or by phone.
Once your account is active, be sure to keep up with your monthly payments through one of five options:
- Online. Set up your online account to make payments from a bank account.
- AutoPay. Schedule automatic monthly payments on a date that works best for you to avoid late payment fees.
- By phone. Call 1-800-955-7070 to make payments at no additional cost.
- Mobile app. Download Capital One’s free mobile app to manage your account safely from your smartphone.
- By mail. If you don’t mind paying for postage to make a payment, mail in a check with the payment coupon attached to your statement.
What customers are saying about the Capital One Secured Mastercard
The Capital One Secured Mastercard gets great reviews, with one consistent complaint being the low credit limit. Capital One in general gets an A+ from the Better Business Bureau; however, they only get 1.5 stars out of 5 from Consumer Affairs.
The capital One Secured Mastercard is a solid choice if you don’t need a high credit limit. There are no hidden fees, and the card has a great reputation with its customers. However, with the high APR of 24.99%, it’s best to only spend what you can afford to pay off each month in order to avoid paying interest.