Required Security Deposit
The Secured Mastercard from Capital One is a secured credit card, so you must make a security deposit of $49, $99 or $200 to start using it. The deposit can be made in a single payment or multiple installments of at least $20 in whole-dollar increments. Capital One only accepts security deposits through electronic funds transfer from your bank account.
Your security deposit must be paid in full within 35 days of approval. Capital One won’t issue your credit card until the deposit requirement has been met.
Providing a security deposit and access to an authorized bank account gets you an initial credit line of $200. If you deposit more money before your account opens, you can get a higher credit line equal to the amount you deposit, up to $1,000. After six months, you’ll be automatically considered for a higher credit line based on your payment history and creditworthiness.
The security deposit cannot be used to pay your balance. It’s used as collateral for your account and will be fully refunded if the account is upgraded to an unsecured card or if you close your account, provided your balance is paid in full.
Increasing Your Credit Limit
The Secured Mastercard from Capital One comes with a minimum credit line of $200, but you can increase this credit limit before activating the card by depositing more money or possibly over time with responsible use.
To increase your initial credit line, all you need to do is deposit more than the required minimum security deposit within 35 days of approval and before activating your card. Your credit limit will be raised by the amount of your additional deposit, up to $1,000.
You can also be considered for a credit line increase after activating your account based on your payment history and creditworthiness without needing to deposit more money. Card users are automatically considered for a higher credit limit in as little as six months after account opening.
The Secured Mastercard from Capital One offers several benefits for users trying to build their credit history:
Credit reporting: The primary benefit is that your credit standing, such as if you’re making your minimum payment in full and on time, will be regularly reported to the three major credit bureaus.
Payment features: You can choose your monthly due date and make payments by check, online or in-person at a local branch.
Account alerts: You can set up account alerts via email or text and autopay to help you stay on top of your account. You can manage your account online or via the Capital One Mobile app, which lets you lock your credit card if it’s lost or stolen.
Fraud coverage: Cardholders also have $0 fraud liability, so you never have to pay for unauthorized charges. To help you protect your account further, you can use virtual card numbers, which let you pay for online purchases with a pseudonymous credit card number instead of your real number.
The Secured Mastercard from Capital One has an APR of 26.99% (Variable) on purchases, balance transfers and cash advances. Late payments won’t increase this APR, but the APR is variable like most other cards, so Capital One may increase your APR if market conditions change. You’ll be notified in writing of any APR changes. If your rate is raised for any reason other than a change in the prime rate, the higher APR will only apply to new transactions made after Capital One notifies you of the rate increase.
The Secured Mastercard from Capital One doesn’t charge an annual fee. It also has no balance transfer fee or foreign transaction fees.
Other card fees include the cash advance fee, which is 3% with a $10 minimum. The card also charges a late payment penalty fee of up to $40.
Is the Secured Mastercard from Capital One Worth It?
You won’t pay an annual fee to get the Secured Mastercard from Capital One, but you do need to make a refundable security deposit to get started. If you need help building your credit and can’t get approved for an unsecured credit card, putting down that deposit could be worth it for you. When you make on-time payments, you can improve your credit and potentially upgrade to an unsecured card so you can get your deposit back.
Should You Get a Secured Mastercard from Capital One?
The Secured Mastercard from Capital One may be a good option if you:
- Are trying to build or rebuild your credit.
- Want a card with no foreign transaction fee.
- Are OK making a security deposit.
- Plan to make at least the minimum payment on time each month.
Other Cards to Review
Compare the Secured Mastercard from Capital One to other cards with similar features.
Rewards: The Secured Mastercard from Capital One has no rewards system. The Discover it® Secured Credit Card offers 2% cash back at restaurants and gas stations on up to $1,000 in combined purchases each quarter. The Discover it® Secured Credit Card offers unlimited 1% cash back on all other credit card purchases.
Sign-up bonus: The Secured Mastercard from Capital One does not have a sign-up bonus. The Discover it® Secured Credit Card will automatically match all cash back new cardholders have earned, dollar for dollar, at the end of the first year.
Benefits: The Secured Mastercard from Capital One offers benefits including fraud coverage and emergency card services. The Discover it® Secured Credit Card gives users free access to a monthly FICO credit score to track their credit history.
Annual fee: The Secured Mastercard from Capital One and the SDFCU Savings Secured Visa Platinum Card charge an annual fee of $0.
Rewards: The Secured Mastercard from Capital One has no rewards system. The SDFCU Savings Secured Visa Platinum Card has a Flexpoints reward program that earns one point per dollar.
Sign-up bonus: Neither the Secured Mastercard from Capital One nor the SDFCU Savings Secured Visa Platinum Card has a sign-up bonus.
Benefits: Secured Mastercard from Capital One cardholders have access to fraud coverage and emergency card services. The SDFCU Savings Secured Visa Platinum Card offers an auto rental collision damage waiver and lost luggage reimbursement.
FAQs About the Secured Mastercard from Capital One
Q: How does Secured Mastercard from Capital One work?
A: The Secured Mastercard from Capital One is a secured credit card designed to help users build or rebuild their credit history with responsible use. Once you are approved for the credit card, you’ll be notified of the security deposit you must make to activate your account. Minimum security deposits can be $49, $99 or $200, depending on your creditworthiness. You’ll get a unique customer number to include when you make your security deposit either online or over the phone.
You can pay your security deposit all at once or in installments, but your card won’t be mailed to you until you’ve made your security deposit in full. This deposit cannot be used to make payments on your credit card but is returned to you upon account closing, provided your balance is paid in full.
As you use your card, Capital One will report your card status, including if you make your minimum payment in full and on time each month, to the three major credit reporting bureaus. In this way, the Secured Mastercard from Capital One can help responsible users build their credit history.
Q: Does Capital One offer secured credit cards?
A: Yes, Capital One does offer secured credit cards; the Secured Mastercard from Capital One is one of them.
Q: How long does it take to receive a Secured Mastercard from Capital One?
A: After you’ve made your security deposit, you’ll receive your Secured Mastercard from Capital One in two to three weeks.
Q: Is Secured Mastercard from Capital One good?
A: The Secured Mastercard from Capital One can be a good option for consumers looking to build or rebuild their credit with responsible use. With no annual fee, the card lets you build your credit even if you barely use it. Plus, the ability to increase your credit limit before and after account opening means this is a card that can grow with you over time.
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