• Annual Fee: $0
  • Max Late Fee: $40
  • Recommended Credit Score: Bad
  • Regular APR: 26.99%
  • Credit Line: $200

2021's Capital One Secured Mastercard Reviews [Pricing & Alternatives]

  • Annual Fee: $0
  • Max Late Fee: $40
  • Recommended Credit Score: Bad
  • Regular APR: 26.99%
  • Credit Line: $200

Best For

Flexible Deposit Payments

STRENGTHS

  • No annual fees or foreign transaction fees
  • Qualify with limited bad credit
  • Report to all three major credit bureaus to help you build your credit
  • The security deposit can be paid in smaller installments
  • Opportunity for increased credit
  • Excellent customer service
  • $0 fraud liability

WEAKNESSES

  • No reward programs or special benefits
  • Low credit limit
  • Applicants are required to have an already established savings bank account

Capital One is a full-service bank holding company that offers an array of different products to its customers. Founded in 1994, its financial products include auto loans, checking, and savings accounts, and credit cards.

As seen from many Capital One Secured Mastercard reviews, their $0 annual fee credit card with a $200 credit line has become quite popular for those struggling with bad credit.

In this review we will consider the following:

  • Product Overview
  • Product Features and Stand-Out Features
  • Application Process and How to Use the Product
  • Rates and Fees
  • Pros and Cons
  • Alternatives and Competitors
  • Capital One Secured Credit Card Reviews and Testimonials
  • FAQ

Capital One Secured Mastercard Product Overview 

Specifically designed for customers with bad credit, the Capital One Secured Mastercard helps you build and rebuild your credit. Therefore proving to be one of the best credit repair companies in the US. It’s known as a secured credit card because upon approval you have to provide collateral in order to use it.

Compared to other loaning companies that require collateral in the form of a vehicle or a mortgage, Capital One asks customers to provide a refundable security deposit with no interest charged on it.

If you make a Capital One secured card deposit on a regular basis and repay the balance in full, your credit score will improve and your security deposit will be returned.

How Is The Capital One Secured Mastercard Different?

The Capital One Secured Mastercard has many standout features when compared to other credit card providers.

  • It needs a much lower upfront cash deposit than other secured cards. It’s refundable and is either $49, $99, or $200 depending on your eligibility.
  • The security deposit serves as collateral.
  • This deposit can also be paid in partial payments over the course of 35 days.

The Capital One Secured Mastercard is different from a typical prepaid card in that it reports to the three major credit bureaus. Since a prepaid card acts as a debit card, it doesn’t help you build your credit. If you manage your secured card from Capital One well, however, it can act as a credit builder to secure future loans.

Here is a list of other standout features:

  • Free use of the membership mobile app
  • Access to the Eno Capital One 24/7 assistance
  • 24/7 Capital One Secured Mastercard customer service
  • $0 annual fee
  • $0 transaction fees
  • Flexible security deposit ranging between $49 and $200
  • 24/7 travel assistance services and accident insurance

How Does a Capital One Secured Mastercard Work? 

Unlike some Capital One Secured Card reviews that say the process is complex, we’ve found that the product is pretty straightforward once you start using it. If you want to know how to get out of debt with no money and bad credit, then you should definitely consider applying for this secured Mastercard. Let’s take an in-depth look at how it actually works.

Application

First, you should fill in the short Capital One Secured Mastercard application form on the company’s website. You are required to provide your full name, surname, contact information, Social Security number, and information on your income and other bank accounts. When writing our Capital One secured review, we’ve found that the application process only takes a few minutes, and the company typically replies within a day.

Making a Deposit

Upon approval, Capital One will inform you of the deposit amount required. This deposit should be paid in full within 35 days before the card can become active. When your security deposit is paid, you can receive your card within the next 2-3 weeks.

Deposit amounts should be $20 or more and can only be paid through direct deposits, no cash.

Once the full security deposit has been made, your card will be active and you’ll receive the minimum Capital One Secured Mastercard credit limit of $200.

Using Your Capital One Secured Mastercard

While using your card, you are still required to make a minimum monthly payment to build your credit score. There is an option of a Capital One secured card credit limit increase when you pay a larger security deposit than initially required. Credit lines can be increased up to $1,000. Increases on your limit can also be made based on your creditworthiness and payment history.

While using your card you can also benefit from expert guidance and advice on what bad credit scores are and how you can improve them. The most important part of using your new credit card is to stick to making monthly payments on time. This will ensure a credit score improvement in the future.

Getting Back Your Deposit

There are two different ways in which customers can get back their security deposits:

  • The amount is refunded when the Capital One Secured card is paid in full and the account is closed
  • It can be earned back when you use your credit card responsibly and stick to the payment schedule

Eligibility

To make sure that our Capital One Secure review gives you a complete overview, we have to look at the eligibility requirements for potential customers. Here is a list of requirements you’ll need to be able to apply for a secure Mastercard:

  • Should be a citizen of the United States
  • Monthly income isn’t exceeded by monthly expenses
  • Have a valid Social Security number
  • Need to be a debit or savings cardholder
  • Over the age of 18
  • Have no past due Capital One credit cards
  • Have an unresolved bankruptcy

Those with bad credit are guaranteed approval to a credit loan when they meet the minimum requirements.

Rates and Fees

Capital One Secured Mastercard reviews are very positive about the company’s transparency on rates and fees. This card has no annual fees attached to it, but an APR rate of 26.99% will apply. There are also no foreign transaction fees applied. No late payment fees will be charged within 25 days after the billing cycle. Any payments later than that will have a penalty fee of up to $40.

Interest will be charged on cash advance (usually $10 or 3%) and on transfers when the previous balance hasn’t been paid.

Pros and Cons

For our Capital One secured card review, we’ve found the following notable benefits and disadvantages:

PROS

  • No annual fees or foreign transaction fees
  • Qualify with limited bad credit
  • Report to all three major credit bureaus to help you build your credit
  • The security deposit can be paid in smaller installments
  • Opportunity for increased credit
  • Excellent customer service
  • $0 fraud liability

CONS

  • No reward programs or special benefits
  • Low credit limit
  • Applicants are required to have an already established savings bank account

Capital One Secured Mastercard Reviews 

There are over 13,500 reviews on Capital One’s website alone. Reviews are managed and supported by Bazaarvoice anti-fraud technology to make sure all of them are authentic. Out of the thousands of Capital One Mastercard Secured credit card reviews on the site, the company scores a 4.4-star rating with 91% reviewers recommending the product.

Privacy and Security Policy

Capital One highly values its customer’s privacy. They have implemented security alerts to help detect any suspicious activity. Capital One also uses other safety features like the card lock and account alerts from Eno, as well as alerts from CreditWise.

Alternatives and Competitors

Some of Capital One’s strongest competitors are Chime and Discover. Let’s see how they compare:

Capital One vs Chime

Both companies provide bad credit customers with low-cost options to build up their credit profiles. There are quite a few differences between the two. Chime doesn’t have a minimum security deposit amount but does have a credit limit of $200. Compared to Capital One who has a minimum security deposit of $49 with the option of increasing the Capital One Secured Mastercard limit in the future.

Capital One vs Discover

Discover requires its members to pay a $200 minimum security deposit, making it higher than Capital One’s. The higher security deposit allows for a higher credit limit of $2,500. Capital One hasn’t got any rewards, whereas Discover provides its clients with a 2% cashback on gas and restaurants as well as 1% cashback rewards on all other card purchases.

Wrap Up

With a $0 annual fee and low credit deposits, this product is perfect for people who want to apply for future loans but need a better credit score to do that. There are no hidden costs, and reviews state that the APR rates are competitive and transparent.

Looking at numerous Capital One secured Mastercard reviews it is evident that the product comes with many benefits, including an increase in credit line limits when payments are made frequently. Take your time and choose a secured credit card that best fits your needs; Capital One is definitely worth considering.

FAQ

How Does a Capital One Secured Mastercard Work?

The process of getting a Capital One secured card is pretty straightforward. If you meet the eligibility requirements of the company, you can apply for a card. Upon approval, you should pay the credit deposit in full. Then you’ll receive your card within 2-3 weeks.
It reports on a monthly basis to all three major credit bureaus. This means that if you keep up with payments, you will slowly build up your credit score.

How Long Does it Take for a Capital One Secured Card to Become Unsecured?

With time, if you’ve kept up with the payments, you’ll get your deposit back, and the card will become a regular unsecured card.

Is The Capital One Secured Mastercard Good?

This product comes highly recommended by hundreds of positive Capital One Secured Mastercard reviews. It’s especially useful for those with a bad credit score. If you want to improve your FICO score and build credit, this is definitely a product to consider.

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