Secured MasterCard from Capital One Review
When it comes to fixing or establishing your credit, the Secured MasterCard from Capital One is a decent choice. It comes with several perks that are unusual for a secured credit card for their cardholders to enjoy. If you’re curious whether or not the Capital One Secured MasterCard is a good fit for you, read on. We’ll list the good and the not so good that comes with this card.
Benefits of the Secured MasterCard from Capital One
Easy Account Monitoring
The Capital One Secured credit card has easily accessible account monitoring. You’ll get online account access. You can log in through the app or through the website. This allows you to monitor your account 24 hours a day, seven days a week. You’ll be able to log in and check your balance, bills, and any purchases. You can also call in and contact support with any questions or concerns.
Regular Credit Reporting
The Capital One Secured card helps you build or rebuild your credit. As long as you use it responsibly, should see your credit increase. It regularly reports to all three credit bureaus. This is great if you have a very thin credit history. Lenders will be able to look and see you making on-time payments and using your card responsibly. This can make them more comfortable to work with you.
Lower Initial Deposit
Normally when you get a secured card, your deposit amount is your credit line. However, the Capital One Secured card deposit it different, and this makes it stand out. The deposits start at $49, and this can get you a credit line of $200. The total amount will depend on your creditworthiness. If you want a higher credit limit, your Capital One Secured card deposit can range from $99 to $200.
CreditWise and Monitoring Tools
On top of 24/7 account access, Capital One gives cardholders more tools to succeed. Cardholders will enjoy CreditWise, and this is a free monitoring app. It lets you see your credit score improving. It’ll also show you your payment and credit history in real time. CreditWise monitors your account for suspicious activity as well. Finally, you can set up an alert system to warn you of upcoming payments. It’ll email you if you’re too close to your credit limit as well.
Access to a Higher Credit Line
The Secured MasterCard from Capital One lets you get a higher credit line quickly. When you open the account, all you do is make your first five payments on time. If you do this, Capital One may offer you a higher credit line. This higher credit line gives you a little more freedom with your purchases. It also gives you a chance to continue to learn to be financially responsible.
No Annual Fees
Some secured cards have annual fees, but the Secured MasterCard from Capital One has no annual fee. No annual fees allow you to focus on building your credit and your credit history. You won’t have to worry about having extra money around to pay your annual fee. This is great news for people who don’t have a lot of money, to begin with. It gives you the flexibility to plan for your expenses as well.
No Additional Deposit for a Credit Increase
Usually, when you apply for a higher line of credit, you pay an additional deposit. This isn’t the case with the Capital One Secured credit card. Capital One will monitor how well you’re doing with your card. Show them that you can use it responsibly and your credit is doing better, you can get a credit increase. If your credit is doing well enough, you won’t pay an additional deposit.
MasterCard is one of the more popular credit card brands. It’s been around since 1966, and most vendors accept it. You can use it at restaurants, for entertainment, shopping, and more. You can also use it online or in person, and this makes it easy to build up a solid foundation for your credit. Just make sure that you can pay off your balance each month and avoid sliding into debt.
Flexible Payment Options
A lot of cards have one specific due date, and you have to work around it. The Secured MasterCard from Capital One has a fluid payment due date and options. When you get the card, you can pick the due date that suits you. You can also choose how you’d like to make your payment. You can pay by check, at a local branch, or online. Whichever way you choose to pay is free, and you won’t pay an additional fee.
Another thing that sets the Secured MasterCard from Capital One apart is the authorized user feature. You can register another person to use your card. Once you do, you can monitor their activity through CreditWise. You may not want to do this because it’s a smaller credit line, but the option is there.
Drawbacks of the Secured MasterCard from Capital One
The Capital One Secured Card has no reward system. You won’t earn any reward points or cash back when you use the card. This is fairly typical of secured credit cards. It allows you to focus on fixing or building up a solid credit history. You can always graduate to a rewards card once you build up your credit score. However the Discover it® Secured Credit Card does offer cash back rewards from day one.
If you usually carry a balance from month to month, you want to break this habit with this card. The Capital One Secured MasterCard has a higher APR. For each month you carry a balance, you’ll pay an additional APR of 24.99%. This rate can stack up very quickly, and it’s a fast way to get into debt. If you’re having trouble paying your balance, it’s time to scale back your spending.
Lower Maximum Security Deposit
Although it’s nice that you’ll pay less for a security deposit, it has a lower maximum amount. The highest security deposit you can pay for this card is $1,000. This restricts how high your final credit line amount is. Other secured credit cards offer maximum security deposits ranging from $2,500 to $4,900.
Have to Have a Savings or Checking Account
In order to open this card, you have to have either a checking or a savings account. You can’t open the card without one, and this can make it difficult. It is relatively easy to open one of these accounts though. It also doesn’t have to be through Capital One. You can open one at the bank of your choice, and it’ll work. If you do not have a bank account then the OpenSky® Secured Visa® Credit Card is a good option.
This card comes with a few other restrictions as well. If you’re an existing customer, you can only have two other Capital One accounts. They also have to be in good standing and show a history of responsible use. If you’ve recently had a credit card discharged, you won’t be eligible for this card. It’s important to know these restrictions before you apply for this card.
Lower Initial Credit Limit
Whether you pay a $49, $99, or $200 security deposit, your initial credit limit is $200. You’ll have this credit limit for at least the first five months you have the Secured MasterCard from Capital One. Once the five months is up, you may be eligible for a higher line of credit.
No Graduating to an Unsecured Card
A lot of secured cards have a graduation process. After you build up your credit, they’ll offer you an unsecured card. However, this card doesn’t offer that option. If you want an unsecured card from Capital One, you have to apply for it. You may get pre-qualification offers from the company when your credit fits their requirements.
Bottom Line Secured MasterCard® from Capital One®
The Secured MasterCard from Capital One has several great benefits and a few drawbacks. So it’s a good tool to use to fill out your credit history. As long as you use it responsibly, it’ll work for you. Finally, if you’re considering trying to build your credit, it’s worth looking into this secured card.
CreditFast has reviewed the best secured credit cards on the market. Some of the credit card offers are from our advertising partners. CreditFast has objectively reviewed the features and benefits of each secured credit card. We have chosen credit card offers based on our editor’s recommendations.