Whether you have a low credit score because you made some financial missteps in the past or because you just haven’t established your credit yet, there are still credit card options available. One of the best is the Captial One Secure MasterCard.
Because it’s a secured card, you have a much better chance of receiving credit approval, as Capital One doesn’t need to take the same risk it would with its unsecured cards. The Capital One Secured MasterCard has several helpful features that allow you to build your credit or rebuild credit responsibly. Learn more about how you can get it and its many benefits.
The Capital One Secured MasterCard at a Glance
The Captial One Secure MasterCard has the following key features:
- A variable annual percentage rate (APR) or 24.99 percent
- A $200 initial credit limit
- No annual fee
- Unlimited access to CreditWise from Capital One
Although the APR is higher than many credit cards, keep in mind that this card is intended for you to rebuild credit responsibly, not to carry around a balance for extended periods of time. For the best results, you should use it and pay off the balance in full every month. This will steadily build your credit. Since this is a secured credit card, it requires a security deposit.
The initial credit limit is always $200, but the amount of your security deposit will depend on your creditworthiness. You may need to pay the full $200, or Capital One may require you to pay only $49 or $99. If your first five monthly payments are made on or before the due date, Capital One will automatically raise your credit limit, and it won’t require you to pay any more money towards a security deposit. You can get your security deposit back by paying off the balance and closing your card, but a better option is asking Capital One to refund the deposit and switch you to an unsecured card after you’ve demonstrated responsible use of this card. Capital One’s CreditWise service is a helpful tool to keep track of your credit profile. You can track your credit score with and make sure you’re on the right track.
Additional Card Benefits
As a Platinum MasterCard, this Capital One secured card also has these benefits:
- Rental car insurance covering collision and theft
- Travel accident insurance covering loss of life or limb
- Extended product warranties
- Price protection that reimburses you if the lower price is found for an item you purchased within 60 days
- 24/7 travel assistance, which includes an emergency credit card replacement and a cash advance
- 24/7 roadside assistance if you end up locked out of your car or if it breaks down
For auto rental insurance, travel accident insurance, extended warranties and price protection, you must pay for those purchases with your Capital One card to qualify for the coverage. Through Capital One, you have $0 Fraud Liability in the event of a lost or stolen credit card. You won’t pay for any fraudulent purchases as long as you report the lost or stolen card in a timely fashion. Capital One allows you to select your payment due date and offers three convenient payment options – online, by mail with a check or at a Capital One location. There’s 24/7 customer service available by phone and through the Capital One mobile app.
Getting and Using Your Card
If you’ve decided this Capital One MasterCard is right for you, there are multiple application options available. The most convenient is going to the Capital One site and filling out an online application. You can also go into a Capital One location and complete an application with a representative there. Expect to provide all the standard credit card application info, including your full name, address, Social Security number and current income. Capital One will run a hard credit check on you, but since this is a card intended for those who want to rebuild credit responsibly, a low credit score typically won’t disqualify you.
After you receive credit approval and get the card, you just need to keep a few things in mind to build your credit. Using the card and then making your payments on time are the most important habits for a higher credit score. You should also keep your credit utilization under 30 percent at all times. That means when you first get the card and have a $200 credit limit, never let the balance get above $60. If you need to get control of your credit and you haven’t had any luck applying for other credit cards, this secured MasterCard through Capital One is an excellent option. After five months of using the card responsibly and making your payments on time, you can get a higher credit limit. More importantly, you’ll be raising your credit score.