As secured cards go, the Capital One Secured MasterCard for Young Adults one isn't bad. But do you really need a secured card at your age?
Who the Capital One Secured MasterCard For Young Adults Is For
- Young 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 for Young Adults
Pros
- Automatic reporting to credit bureaus.
- Ability to earn credit line increases without additional deposits.
- No balance transfer fees.
- Free enrollment in CreditInform program.
Cons
- High annual fee.
- High APR.
- Security deposit required (minimum $200).
Rewards
- None.
APRs
- 19.8 percent variable on purchases and balance transfers.
Fees
- Annual fee: $24.
- Late payment fee: $19.
- Returned payment fee: $39.
Capital One Secured MasterCard for Young Adults Card Review
Although this card is aimed at students, it has the exact same terms as the Capital One Secured MasterCard. So it's not bad as far as secured cards go. The $24 annual fee and 19.8 percent APR are both modest compared to other secured cards. You must post a minimum of $200 as a security deposit, which is your credit limit.
But if you're a young person considering a secured credit card, ask yourself: Why exactly do you need a secured card at this stage of your life? Secured cards are for people who are trying to rebuild their credit and are desperate to get a credit card. Chances are your situation is not as bad as you think.
While it's sad but true that many young people are already in bad financial straits, they shouldn't be that desperate to get a credit card. There are other alternatives to secured cards, such as prepaid cards. Or try applying for an unsecured card. Don't give up so easily!
This card features automatic reporting to the three major credit bureaus and free enrollment in Capital One's CreditInform credit-tracking product. It also offers credit line increases if you demonstrate good credit behavior, without requiring any additional deposits.
As with any other secured card, it's important to remember that your security deposit doesn't mean you don't have to pay your bill when it comes; you always have to pay at least your minimum balance, hopefully a lot more. And make sure you never miss a payment or be late.
Recommendation
Before you resort to a secured card, ask yourself if you really do need a credit card that badly, and if a secured card is your only alternative. Try getting an unsecured card first.