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
- 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).
- High interest rates.
- Security deposit required (minimum $200).
- 22.9% variable on purchases and balance transfers.
- 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.