Security Credit Card like Capital One Secured MasterCard is relatively easier to get approved for than unsecured credit cards, making it a thoughtful alternative if you want to build or rebuild your credit.
Secured MasterCard by Capital One is a good choice among secured credit cards since it does not charge you an Annual Fee. You can start building credit with a security deposit of as low as $49.
The initial line of credit for you may be as low as $200, but you should keep in mind that the main objective of this card is to help you improve your credit score. This will increase your credit score, thereby enabling you to switch to better credit cards. You should also note that the deposit of $49, $99, $ 200, is held as collateral against your borrowing, and you will get it back once you pay off and close your account.
If your credit score isn’t good enough or you haven’t yet initiated building your credit, the Secured MasterCard from Capital One is what you need to turn around your situation upside-down.
What’s Ahead
- Key Highlights
- Pros & Cons of Secured Master Card from-Capital One
- Why might you want to go for this Secured Master Card from Capital One?
- Why might you want to go for-a different Card?
- Secured MasterCard from Capital One Vs. Discover It -Secured
- Secured MasterCard from Capital One Vs. Citi Secured MasterCard
- Is Secured MasterCard from Capital One the best card to build your credit?
Key Highlights
- No Credit Score is needed for your approval of this card.
- No Cashback Rewards.
- No Hidden Fees are Applicable.
- No Annual Fees is Chargeable.
- Using the Secured MasterCard from Capital One can be helpful for you if you are building or rebuilding your credit history.
- You can put down a security deposit of $49 to avail an initial credit line of $200.
- You can even earn your security deposit in the form of a statement credit when you are using your card responsibly and making payments timely.
- No Foreign Transaction Fee is Applicable.
- No Introductory APR is offered to the new cardholders.
- The Regular APR of 26.99% is applicable on purchases and balance transfers made by you.
- You may be automatically considered for a higher credit line within 6 month without any additional security deposit.
- $0 Fraud Liability for unauthorized transaction.
- Monitor your credit with Credit-Wise from Capital One.
Pros & Cons of Capital one secured card
Pros
- Credit Limits can be higher than the amount of your security deposit.
- Ease of building or rebuilding your credit score.
- Low Maintenance Cost
- MasterCard Perks
- Relatively Lower Deposit Requirement
- No annual fee
- No foreign transaction fees
- Reported to all major credit bureaus.
Cons
- Lack of Introductory APR
- No Cashback Rewards
- Requires minimum deposit with saving and checking account.
Full Review
Here are the full review about Secured Mastercard from Capital One.
Rates & Fees
| TYPES | RATES ($) |
|---|---|
| Joining Fees | None |
| Annual Fees | None |
| Balance Transfer Fees | 3% of the amount of each transaction. |
| Cash Advance | Either $10 or 3% of the amount of each cash advance, whichever is greater. |
| Foreign Transaction Fees | None |
| Late Payment | Up to $40 |
| APR for Cash Advances | 26.99%. |
| Regular APR for Purchases & Transfer | A regular APR of 26.99% is applicable on all purchases and Balance Transfers made by you. The APR are subjected to Prime Rate. |
Why might you want to go for this Secured MasterCard from Capital One?
(1). Credit Limits can be higher than the amount of your security deposit
As a rule, secured credit cards are supposed to offer you an initial credit line of the security deposit amount paid by you before you get the card. That might be the case for some of the new cardholders of Capital One Secured MasterCard; they are required to deposit $200 to be allotted the initial $200 credit limit for the card. Other cardholders with better qualifications might only need to deposit $49 or $99 to be allotted a similar credit line.
(2). Ease of building or rebuilding your credit score
As a secured Credit Card, this card eases up the process of building or rebuilding your credit score since you can get approved for it even with a credit score of 500. In addition to that, even if you do not have a credit history, you are still eligible for this card.
Moreover, the security deposited by you can be redeemed back as Statement Credits if you use your card responsibly by making payments punctually. The more you use this card responsibly, the more your credit score increases, enabling you to switch to the cards with better returns.
(3). Low Maintenance Cost
The Capital one secured card is a Low-Maintenance Cost Card that helps you build or rebuild your credit history. It does not charge you any Annual Fee, Foreign Transaction Fee, Balance Transfer Fee. This makes the process of credit building or credit improvement a very cost-efficient process.
(4).Relatively Lower Deposit Requirement
Capital one secured card charges you a Lower Minimum Deposit amount of $49, $99, $200. Other Credit Cards in the same segment (including Discover It Secured Card, Citi Secured MasterCard) charges you a relatively higher Deposit Amount of $200. Cardholders with limited incomes can be a sigh of relief due to the availability of a lower amount.
Moreover, the Capital One Secured MasterCard also offers you additional leverage by allowing you to pay in installments since you can pay the same amount in installments of $20.
(5). MasterCard Perks
As a MasterCard, the Capital One Secured Card offers you various MasterCard Perks that can significantly help you in times of need. These include the following:
A. Travel Accident Insurance covers you in case of injury or death while Traveling.
B. Secondary Automobile Rental Insurance covers you in case of loss or theft of Automobile.
C. 24×7 travel assistance services.
D. Warranty Extensions extend your warranty up to 2-3 years if a US-based manufacturer offers you a warranty period of fewer than two years.
E. Fraud Coverage covers you as it covers you in case of Fraudulent Transactions made on your account. Moreover, you are not held liable for them.
F. Emergency Replacement Card covers you in case of loss or damage to your card. Moreover, you are also given the free replacement of your lost or stolen card.
Other Card Benefits
Why might you want to go for a different Card?
(1). Lack Of Introductory APR
Like many secured cards, the Capital One Secured MasterCard does not offer you an introductory APR. Introductory APR offers you a sigh of respite from the hefty interest rates.
For Example, the Discover It Secured Card offers you an introductory APR of 10.99% for 6 Months. After that, it charges you the Regular APR of 22.99%.
On the other hand, Capital One MasterCard does not offer you an Introductory APR, which implies that you will have to pay the regular APR of 26.99% right from the beginning.
The Regular APR of Capital One is relatively higher than the Regular APR of Discover It (which charges you the regular APR of 22.99%) and Citi Secured MasterCard (which charges you the regular APR of 22.49%).
(2). No Cashback Rewards
Like many secured credit cards, the Capital One Secured MasterCard does not offer you any Cashback Rewards. A few of the credit cards in this segment offer you some form of Cashback Rewards, including Discover It Secured.
Discover It Secured offers you a 2% Cashback reward on purchases made worth $1,000 each quarter. After that, it offers you an endless 1% cashback reward on all the purchases made by you.
Cashback rewards are always better than no Cashback Rewards.
(3). High APR
Most of secured credit card present in industry, charges you high interest rate on purchases. The capital one secured credit card is not an exception, they also charge 26.99% Variable APR. However, it may not affect you, if you pay all your balance every month, on time and in full, so there will be no interest.
(4). Bank account and credit check may be required
If you have have a checking or savings account along with credit and employment history, then approval odds of Capital one secured credit card are excellent, since Capital One check these list for approval. However, if you do not have Bank account and credit, then you might face hardship for getting approval.
READ MORE : U.S. Bank Cash Plus Visa Signature Card Review 2021
Quick Comparison
What are the better alternatives of Capital One Secured MasterCard ?
We have analyzed a variety of credit cards that can provide you with a better value for your money spent. These include the following:
- Discover It Secured Credit Card.
- Citi Secured Master Card
Secured MasterCard from Capital One vs. Discover It Secured
| FEES & RATES | Secured MasterCard from Capital One | Discover It Secured |
|---|---|---|
| Welcome Bonus/Sign-up Bonus | None | Introductory Cashback Reward of 2% on purchases made worth $1,000. After that, an unlimited 1% cashback is applicable. |
| Cashback Rewards | None | 2% Cashback on purchases made worth $1,000 (within each quarter). After that, an unlimited 1% cashback is applicable. |
| Intro APR | None | Introductory APR of 10.99% is applicable on Balance Transfers for the first 6 months of Account Opening. |
| Regular APR | 26.99% | 22.99% |
| Annual Fee | None | None |
| Foreign Transaction Fees | 0% | 0% |
| Balance Transfer Fee | None | 3% introductory Balance Transfer Fee, then Balance Transfer Fee of 5% is applicable. |
Cashback Reward Rate.
Secured MasterCard from Capital One does not offer you any Cashback Reward. Discover It Secured offers you an introductory Cashback Reward of 2% on spending $1,000 each quarter. Then onwards, an unlimited cashback of 1% is applicable.
Sign-up Bonus
Secured MasterCard from Capital One does not offer you any sign-up bonus. On the other hand, Discover It Secured offers you a sign-up bonus in the form of 2% Cashback on spending $1,000 within each quarter (throughout the year), then onwards, an unlimited cashback of 1% is applicable.
Annual Fee
Both Secured MasterCard from Capital One and Discover It Secured do not charge you an Annual Fee.
Foreign Transaction Fee
Both Secured MasterCard from Capital One and Discover It Secured do not charge you a Foreign Transaction Fee.
Balance Transfer Fee
Secured MasterCard does not charge you a Balance Transfer Fee. On the other hand, Discover It Secured charges you an introductory Balance Transfer Fee of 3%
Introductory APR
Secured MasterCard from Capital One does not offer you an Introductory APR. On the other hand, Discover It Secured offers you an Introductory APR of 10.99%.
Regular APR
Secured MasterCard from Capital One charges you the Regular APR of 26.99%. On the other hand, Discover It Secured charges you the Regular APR of 22.99%.
Secured MasterCard from Capital One vs. Citi Secured MasterCard
| FEES & RATES | Secured MasterCard from Capital One | Discover It Secured |
|---|---|---|
| Welcome Bonus/Sign-up Bonus | None | None |
| Cashback Rewards | None | None |
| Intro APR | None | None |
| Regular APR | 26.99% | 22.49% |
| Annual Fee | None | None |
| Foreign Transaction Fees | 0% | 3% |
| Balance Transfer Fee | None | $5 or 3% of the Balance Transfer Amount (whichever is higher is applicable). |
Cashback Reward Rate
Both Secured MasterCard from Capital One and Citi Secured MasterCard does not offer you any Cashback Rewards.
Sign-up Bonus
Both Secure MasterCard from Capital One and Citi Secured MasterCard does not offer you any Sign-up Bonus.
Annual Fee
Both Secured MasterCard from Capital One and Citi Secured MasterCard does not charge you any Annual Fee.
Foreign Transaction Fee
Secured MasterCard from Capital One does not charge you a Foreign Transaction Fee. On the other hand, Citi Secured MasterCard charges you a Foreign Transaction Fee of 3%.
Balance Transfer Fee
Secured MasterCard from Capital One does not charge you any Balance Transfer Fee. Citi Secured MasterCard charges you a Balance Transfer Fee of 3%.
Introductory APR
Both Secured MasterCard from Capital One and Citi Secured MasterCard does not offer you an Introductory APR.
Regular APR
Secured MasterCard from Capital One charges you the Regular APR of 26.99%. Citi Secured MasterCard charges you a Regular APR of 22.49%.
Bottom-Line: Is Secured MasterCard from Capital One the best card to build your credit?
[rank_math_rich_snippet id=”s-4fe6d8fb-4ddb-4fe5-a3eb-4129c9d93b12″]Secured MasterCard by Capital One is a low-maintenance card that does not charge you an Annual Fee, Foreign Transaction Fee, Balance Transfer Fee. Moreover, you can deposit a minimum Security Deposit of $49, $99, $200. On the other hand, the Citi Secured and Discover It Secured have a minimum deposit value of $200.
In addition to the low maintenance costs, you also get MasterCard Perks (including Warranty Extension, Identity Protection, Secondary Car Insurance, etc.).
But there are several Downsides to consider before going for this card. These disadvantages mainly include No Introductory APR, Higher Regular APR and No Cashback Rewards. Secured MasterCard from Capital One does not offer you any Cashback Reward on any purchase made by you. Moreover, you are not offered any Introductory APR. Instead, you are charged a high Regular APR of 26.99%.
On the other hand, Discover It offers you an introductory Cashback Reward of 2% on all the purchases made by you (worth $1,000); after that, an unlimited Cashback Reward of 1% is applicable. Moreover, Discover It also offers you an introductory APR of 10.99% for the first 6 months of account opening. After that, you are charged a relatively lower Regular APR of 22.99%. Similarly, Citi also charges you a relatively lower APR of 22.49%.
