1. Money
You can opt-out at any time. Please refer to our privacy policy for contact information.

Capital One Secured MasterCard Credit Card Review

Higher Fees and Rates, But Lower Minimum Deposits

About.com Rating 3 Star Rating
User Rating 2 Star Rating (11 Reviews)

By

Capital One has raised the annual fee and APR on its secured card, but lowered the minimum deposit you have to put up.

Who the Capital One Secured MasterCard Is For

People who don't have a credit history, been turned down for credit card or are rebuilding their credit.

Credit Rating Required

  • Poor or Bad (Below 660)

About the Capital One Secured MasterCard

Pros

  • Automatic reporting to credit bureaus.
  • Modest security deposit required.
  • Ability to earn credit line increases without additional deposits.
  • No balance transfer fees.
  • Free enrollment in CreditInform program (costs $8.99 per month regularly).

Cons

  • High interest rates.
  • Security deposit required (minimum $200).

Rewards

  • None.

APRs

  • 22.9% variable on purchases and balance transfers.

Fees

  • Annual fee: $29.
  • Late payment fee: $19.
  • Returned payment fee: Up to $35.

Capital One Secured MasterCard Credit Card Review

Capital One raised the APR on the Secured MasterCard by 3%, to 22.9%, and the annual fee by $5, to $29. However, they no longer require you to deposit the entire amount to get the minimum credit line of $200 if you qualify. Depending on your credit history, you may have to deposit only $49 or $99 to get a $200 credit limit; if your credit is bad, you'll have to deposit the full $200. You can increase your credit limit up to $3,000 by depositing more money.

The Capital One Secured Credit Card automatically reporting to the three major credit bureaus. And there is free enrollment in the CreditInform credit monitoring service, which is normally $8.99 per month. If you demonstrate good credit behavior, you may be eligible for a credit line increase without making any additional deposits, or graduate to a card with no fee and lower rates.

Capital One is one of the few banks that doesn't charge for balance transfers; most other banks charge 3-5% of the balance, which they take right off the top and add it to your balance. That can be a big expense if the balance is big enough. However, you're probably not going to transfer many balances to this card unless the rate on your other balances is in the stratosphere.

As with any other secured card, it's important to remember that your security deposit doesn't mean you can skip your minimum payment. Don't ever miss a payment or be late, even once.

Recommendation

This card isn't the cheapest secured card, but it's far from the most expensive. See if you qualify for one of the lower priced cards, such as those offered by Orchard Bank or Wells Fargo.

User Reviews

Reviews for this section have been closed.

 1 out of 5
Thinking about getting a Capitol One Secured Card?, Member Alcina11

From my experience, you should think again if your possibly going to give your hard earned money to this company. I listened to the great reviews, and sent them 49.00 from my account, and because I was a little short that week, my boyfriend/husband of 20+ years offered to put up the other 50.00 from his account, since upping my credit would help us buy a house quicker. Now, they took the money, sent me a card, but wont let me use it because part of the money came from a different account, and they asked us to fax a copy of the statement from his account showing where the money had been deducted, we did so and they still will not open the card, or return the money, which is what I now want! I have clipped the card, will never use it, but they wont return our money, oh and the best part of all, I have received two bills for payment on a card I cant and wont use. I think they have quite a scam going. If all the money must come from your own account, they need to let you know this ahead of time. Anyone else have problems with Capitol One ?

1 out of 6 people found this helpful.

See all 11 reviews

©2014 About.com. All rights reserved.