How Does Capital One Secured MasterCard Work?

Does Capital One Secured MasterCard Work?

Capital one secured mastercard

Cards (MP) The Capital One Secured MasterCard maybe the best option if you’re looking to increase your credit score or rebuild credit. There are no hidden charges and a low annual fee of $O. The ongoing APR is 24.9% (Variable), which is a bit high, but even so, it’s one of my favorite secured credit cards. Besides being straightforward, the Capital One® Secured MasterCard® has a few other perks worth talking about, like a low-security deposit, flexible payment options and a line of credit that grows with you.

Please note: The card, rewards, fee satisfaction ratings and cardholder profile are based on responses from current Capital One Secured Mastercard holders. Issuer Satisfaction scores are based on responses from the 1,006 Capital One cardholders that completed the MoneyPacers online survey.

What’s Needed

The Capital One Card requires a refundable security deposit. However, the card determines your limit amount based on your credit score. Your deposit may be $49, $99 or $200 for a starter credit line of $200, but you can increase this up to $3,000 by making additional deposits. Best of all, if you can’t pay your security deposit up front Capital One will let you pay it in pieces, as long as you’ve paid off the full amount within 80 days of your approval. This is a great benefit for those on a fixed income.

Capital One Secured MasterCard’s Highlights

  1. Unlike a prepaid card, it builds credit when used responsibly, with regular reporting to the 3 major credit bureaus
  2. Your minimum security deposit gets you a $200 credit line
  3. Easily manage your account 24/7 with online access, by phone or using our mobile app
  4. It’s a credit card—accepted at millions of locations worldwide

Track your credit score

If you’re interested in building and monitoring your credit, this card offers the Capital One Credit Tracker, which provides a variety of credit tools and information to keep you up to date on your credit score. This service has additional features to guard you against any identity theft.

Balance transfers are accepted

None of the top secured cards allow you to transfer an outside balance, except for the Capital One® Secured MasterCard®. This may be beneficial if you have poor credit and want to transfer an outside balance and start making payments to re-establish your credit at a quicker rate.

Low late payment fee

Capital One only requires a late payment fee of up to $19, which is significantly lower than the $35 standard fee found with many competitor cards. If you find that you are occasionally late with your payments, this may make the Capital One Secured MasterCard a good choice for you.

Don Briscoe
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Don Briscoe

Finance educator, advisor, and leading voice in the global financial literacy movement.Founder and editor of MoneyPacers.com.He lives and enjoys life with his family in New York.
Don Briscoe
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One thought on “Does Capital One Secured MasterCard Work?

  1. Hi, D.Kim, you’re secured deposit is usually rolled over into your unsecured account. So let’s say you started with an $200 unsecured account and six months later Capital gives you an increase to a $600 unsecured credit account. That’s a $400 increase in addition to your $200. You have to ask yourself is an investment of $200 worth having good credit. However, if you closed the account you can get your original $200 investment but you might not want to do that because it can lower your credit score, the thing you’re trying to increase. Just keep your original deposit to amount you can afford and you’ll be fine. Hope this helps.

  2. What happens to your secured deposit after you have had the secured card for awhile and your limit was increased because of good payment history?

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