Capital One Secured Credit Card Review: Is It Worth It?

If you have been declined due to a low credit score when applying for credit cards, then the Secured Mastercard® from Capital One® card may be for you.

This is a secure card that requires a deposit that will act as your credit limit and offers a flexible due date.

There is no annual fee, and your account will be reviewed periodically to see if you qualify for an unsecured credit card.

Secured Mastercard® from Capital One® Pros and Cons

Pros:

• Secured Mastercard® from Capital One® has a $0 annual fee.
• Since Secured Mastercard® from Capital One® is a secured card, no credit history is needed.
• A flexible refundable deposit of $49, $99, or $200 acts as your credit limit.
• You can change your due date.
• After five monthly payments, you are eligible for a higher credit line.
• Secured Mastercard® from Capital One® will periodically review your account to see if you qualify for an unsecured card.
• You can pay your deposit in installments if needed.
• Well-qualified applicants may receive a higher credit limit than their initial deposit.
• You can add an authorized user to your Secured Mastercard® from Capital One® card.
• The Secured Mastercard® from Capital One® card reports your payments to all three credit bureaus.
• You can monitor your credit for free with CreditWise.

Cons:

• Secured Mastercard® from Capital One® does not offer cash back, points, no miles.
• The regular APR is 22.99% on the Secured Mastercard® from Capital One® card.
• There is no intro APR.
• There is no welcome bonus.

What Is the Secured Mastercard® from Capital One®?

The Secured Mastercard® from Capital One® card is a $0 annual fee secured credit card which means you need to put a deposit down to have a credit line.

You can then use your card anywhere Mastercard is accepted. One of the perks of the Secured Mastercard® from Capital One® is that your account will be reviewed periodically to see if you qualify for an unsecured (no deposit needed) credit card.

Furthermore, your account is eligible for a credit limit increase after 5 on-time payments. Your payments will also be reported to the three credit bureaus to help increase your credit score.

How Does the Secured Mastercard® from Capital One® Work?

Getting started is easy. You will need to complete and submit your application for a Secured Mastercard® from Capital One® card.

Upon approval, you will be notified of the security deposit needed. Once you make your deposit, you will receive your card in 2 to 3 weeks.

When you receive your card, activate it by following the instructions on the card. You are now able to use your Secured Mastercard® from Capital One® card anywhere Mastercard is accepted!

Secured Mastercard® from Capital One® Review

Here is a quick review of the fees, requirements, and rewards of the Secured Mastercard® from Capital One® card.

• Annual Fee: There is no annual fee for the Secured Mastercard® from Capital One® card.
• Regular APR: The regular APR is 22.99% variable on the Secured Mastercard® from Capital One® card.
• Security Deposit Requirements: You either need to deposit a refundable $49, $99, or $200 to establish a credit limit on the Secured Mastercard® from Capital One®. Well-qualified members may receive a higher credit limit than their deposit.
• Rewards: Unfortunately, the Secured Mastercard® from Capital One® does not offer any rewards.
• Sign-Up Bonus: There is no sign-up bonus on the Secured Mastercard® from Capital One® card.

Secured Mastercard® from Capital One® Features and Benefits

Here are some of the features and benefits of the Secured Mastercard® from Capital One®.

Straightforward Way to Build Credit

Using your Secured Mastercard® from Capital One® card anywhere Mastercard is accepted, and making your payments on time, is the best way to raise your credit as the Secured Mastercard® from Capital One® card payment activity is reported to all three credit bureaus.

Refundable Deposit

You have two ways you can get your deposit back on the Secured Mastercard® from Capital One® card. First, you can earn back your deposit as a statement credit by using your card responsibly, or second, Secured Mastercard® from Capital One® will refund it when you close your account and pay your balance in full.

Upgrade Cards Overtime

Your account with Secured Mastercard® from Capital One® will be periodically reviewed to see if you qualify for an unsecured credit card via Capital One.

No Annual or Foreign Transaction Fees

You will not pay an annual fee or Foreign Transaction fee with your Secured Mastercard® from Capital One® card.

How Does the Secured Mastercard® from Capital One® Compare to Other Secured Credit Cards?

Now that you know a little more about the Secured Mastercard® from Capital One® card, here are some alternative options.

#1. Discover it® Secured Credit Card vs. Secured Mastercard® from Capital One®

As the name states, the Discover it® Secured Credit Card is also a secured card. However, with the Discover it® Secured Credit Card, you can earn 2% cash back at gas stations and restaurants, up to $1,000 per quarter, and an unlimited 1% cash back on all other purchases.

Discover it® Secured Credit Card is also reported to all three credit bureaus to help you build your credit score.

#2. Petal® 2 “Cash Back, No Fees” Visa® Credit Card vs. Secured Mastercard® from Capital One®

Petal® 2 “Cash Back, No Fees” Visa® Credit Card is an unsecured credit card. With their higher credit limits, up to $10,000, individuals with higher credit scores will only be approved for this.

Petal® 2 “Cash Back, No Fees” Visa® Credit Card does offer a 1% cash back on all purchases, and after you make 12 on-time payments, your cash back percentage can increase to 1.5%.

Petal® 2 “Cash Back, No Fees” Visa® Credit Card offers periodical specials where cardholders can earn 2% to 10% at select merchants.

#3. BankAmericard® Secured Credit Card vs. Secured Mastercard® from Capital One®

BankAmericard® Secured Credit Card that requires a minimum of a $300 deposit with a maximum of $4,900 to open an account. You will have access to your FICO score on a monthly basis.

Your account is also reviewed periodically to see if your deposit can be returned to you while you still use the BankAmericard® Secured Credit Card, essentially becoming an unsecured credit card at that time. The standard APR rate is 22.99%, with no annual fee.

Capital One Secured Credit Card FAQs

Here are some frequently asked questions about the Secured Mastercard® from Capital One® card.

What is the Credit Limit on the Capital One Secured Card?

The credit limit on your Secured Mastercard® from Capital One® card is the amount you put down as a deposit. However, well-qualified members can be issued a higher credit limit than their deposit.

You can also deposit additional money prior to your account being opened to increase your credit limit. Furthermore, periodically, Secured Mastercard® from Capital One® reviews your account to see if you qualify for a credit limit too.

Is the Capital One Secured Credit Card Good?

If you need a secured credit card, Secured Mastercard® from Capital One® card provides deposit flexibility, periodical reviews on your account for credit limits, access to your FICO score, no annual fees, and reports your payments to all three credit bureaus to help build your credit score.

Does the Secured Mastercard® from Capital One® Help You Build Credit?

Yes, the Secured Mastercard® from Capital One® card helps you build your credit in a number of ways. The most straightforward is by reporting your payments to all three credit bureaus.

However, increases in your credit line also can have a positive impact on your credit score. Secured Mastercard® from Capital One® also gives you access, via CreditWise, to your FICO score so you know your number and are alerted if anything changes.

Does the Secured Mastercard® from Capital One® Have An Annual Fee?

No, the Secured Mastercard® from Capital One® card does not have an annual fee.

What Credit Score is Needed for the Secured Mastercard® from Capital One®?

You do not need to have a good credit score since the Secured Mastercard® from Capital One® card is a secured card that requires a deposit. However, members with higher credit scores are eligible to receive a higher credit limit than their deposit.

Bottom Line: Secured Mastercard® from Capital One® Review

If you have been turned down due to your credit score when applying for credit cards, you may want to give Secured Mastercard® from Capital One® card a try.

Since it is a secured credit card, you will need to put a deposit down. There are no annual fees, and they provide multiple ways to monitor and increase your credit score.

However, if you are looking for a card that has great rewards, then Secured Mastercard® from Capital One® card is not for you as they offer almost nothing in rewards, including no welcome bonus, which most cards offer.

You will have access to your FICO score monthly, and Secured Mastercard® from Capital One® does report your payments to all three bureaus.

Therefore, if you need to use the Secured Mastercard® from Capital One® card as a rebuilding tool before getting another card, that may be the best idea.