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If your credit score isn’t the best, and you’re looking to change that, a secured credit card is usually one of the best options available. However, these cards typically require a security deposit that is equal to your credit line. The card_name is a notable alternative, as it may let you put down less in collateral than your credit limit.
Capital One Platinum Secured Credit Card
Capital One Platinum Secured Credit Card
Pros & Cons:
- Security deposit of $49, $99, or $200 to get a $200 credit line.
- No annual fee or foreign transaction fee.
- You may qualify even with bad or limited credit.
Cons:
- Doesn’t earn rewards.
- No welcome offer.
- High ongoing APR.
- Size of security deposit depends on creditworthiness.
TIME’s Take
The card_name extends a credit line starting at $200 with security deposits as low as $49 for those who qualify. Otherwise, you may qualify with a security deposit of $99 or $200. There’s annual_fee_disclaimer annual fee, and those with bad or limited credit may be eligible for the card. Additional benefits are limited, and the ongoing annual percentage rate (APR) is high at reg_apr,reg_apr_type. But the card is a decent option if you’re looking to get around the typical security deposit requirements.
Capital One Platinum Secured: Pros and cons
Pros:
- Security deposit of $49, $99, or $200 to get a $200 credit line.
- No annual fee or foreign transaction fee.
- You may qualify even with bad or limited credit.
Cons:
- Doesn’t earn rewards.
- No welcome offer.
- High ongoing APR.
- Size of security deposit depends on creditworthiness.
Who is the Card for?
This card’s standout feature is the ability to get a $200 credit line with refundable security deposits as low as $49. This makes it best for those who want to build their credit but don’t have the $200 typically required to open a secured credit card.
Somewhat counterintuitively, the lower deposits of $49 and $99 are available based on your creditworthiness. If your credit score is on the low end, you may still have to cough up $200 to open this card. However, if your credit is only slightly damaged you may qualify for a lower deposit, making this an attractive option.
Capital One doesn’t indicate a specific credit score required for this card, but it does say it’s for people whose credit level is “rebuilding.” It defines this as one of the following:
- I’ve defaulted on a loan more than once.
- I’ve been declined for a credit card in the last three months.
If either of these applies to you, your credit score probably isn’t the best. In this case the card_name might be the right choice to build your credit.
Features
While the card_name is a little light on features, it does have a few extras that make it worth a look.
Security deposits are refundable
The need to lock up your money isn’t ideal, and many secured credit cards don’t have an upgrade path. This means you’ll have to keep your security deposit with the credit card issuer as long as you have the card.
Happily, this isn’t the case for the card_name. Security deposits are refundable, as you can upgrade to an unsecured Platinum card later. Capital One says this is possible with responsible credit card use.
Credit Bureau Reporting
Given that the card_name is meant for people who are rebuilding their credit, Capital One reports on-time payments to the three major credit bureaus: Experian, TransUnion, and Equifax. With responsible credit card use, you can build your credit score.
However, keep in mind that Capital One also reports late payments and delinquent accounts. Therefore, only making your payments on time will give you the best chance of raising your credit score.
Minimal Fees
Some secured credit cards charge excessive fees, such as annual fees and even credit-line–increase fees. The card_name is reasonable about fees, with no annual fee and no foreign transaction fee. What’s more, there are no additional fees that will nickel-and-dime you.
Credit line increases possible
You can increase your credit limit from the initial $200, and there are two ways to do so:
First, you can increase your credit line by depositing more, up to a maximum of $1,000. Capital One also allows you to increase your deposit in increments as low as $20.
Second, you can automatically be considered for a credit line increase after six months with responsible credit card use. The latter requires no additional security deposit.
The fine print
- Annual fee: annual_fee_disclaimer.
- Purchase intro APR: intro_apr_rate,intro_apr_duration.
- Balance transfer intro APR: balance_transfer_intro_apr,balance_transfer_intro_duration.
- Regular APR: reg_apr,reg_apr_type.
- Cash advance fee: cash_advance_fee.
- Balance transfer fee: balance_transfer_fees.
- Foreign transaction fee: foreign_transaction_fee.
- Late fees: Up to late_payment_fee.
- Returned payment fee: $0.
Additional hidden perks
The card_name provides a basic set of hidden perks:
- $0 fraud liability. You won’t be held responsible for unauthorized charges if your card is lost or stolen.
- Card lock. Lock your card in the Capital One mobile app if it’s misplaced, lost, or stolen.
- Digital assistant. Capital One’s digital assistant, Eno, can send you important alerts. These include for unusual activity or when there is a potential mistake or unexpected charge on your account.
- CreditWise. Gets alerts when there is a change detected on your TransUnion or Experian credit report.
- Mastercard ID Theft Protection™. Available from Mastercard, this service will monitor your credit file and alert you about suspicious activity. You can also get assistance from a resolution specialist.
While these are standard benefits and don’t set this card apart from the competition, it’s good to see some additional protections are available to cardholders.
What Could Be Improved
One of the biggest areas of improvement for this card is its regular APR. At reg_apr,reg_apr_type, carrying a balance on this card could be costly. And some other secured credit cards have significantly lower APRs. For instance, the OpenSky® Secured Visa® Credit Card has a 22.64% variable APR. Or consider the card_name, which charges no interest at all.
Another thing that could be improved about this card is its lack of rewards program. While that isn’t exactly standard for secured credit cards, the card_name earns cash back in several common spending categories. It would be nice to see Capital One extend this to the card_name.
Lastly, this card doesn’t come with a welcome offer or introductory APR. Cardholders could benefit from earning some free cash back or transferring balances with a low APR. As it stands, those features aren’t available with this card.
Card alternatives
| Description | $49, $99, or $200 | |
|---|---|---|
| APR | reg_apr,reg_apr_type | reg_apr,reg_apr_type |
| Annual fees | annual_fees | annual_fees |
| Credit score | credit_score_needed | credit_score_needed |
Bottom line
The card_name is a welcome option for credit builders who don’t have the funds available for a $200 security deposit. Fees are minimal, and there’s a possibility to qualify for a credit line increase or upgrade to an unsecured card later. However, there may be better options if you want a lower APR, a welcome offer, or to earn rewards on your purchases.
Capital One Platinum Secured Credit Card
Capital One Platinum Secured Credit Card
Pros & Cons:
- Security deposit of $49, $99, or $200 to get a $200 credit line.
- No annual fee or foreign transaction fee.
- You may qualify even with bad or limited credit.
Cons:
- Doesn’t earn rewards.
- No welcome offer.
- High ongoing APR.
- Size of security deposit depends on creditworthiness.
Frequently asked questions (FAQs)
What is the credit limit on the card_name?
The card_name starts with a $200 credit line. You can increase your credit line up to a maximum of $1,000 by adding to your security deposit. Alternatively, you may be eligible for a credit limit with responsible credit card use in as little as six months. No additional security deposit is required if you qualify for a credit line increase.
How long does it take for a card_name to become an unsecured card?
Capital One says there is no set timeline for upgrading from a secured card to an unsecured one. However, the card issuer says you will receive a notification if you become eligible for an upgrade.
What are the best unsecured credit cards?
The “best unsecured credit cards” means largely the same thing as the best credit cards in general, as most credit cards are unsecured. There are many excellent credit cards from which to choose. Popular cards include the card_name, card_name, and the card_name.
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