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Capital One Platinum Secured Credit Card Review
The Capital One Platinum Secured Credit Card is a credit card for those looking to rebuild their credit. Put down a refundable security deposit starting at $49 to get a $200 initial credit line, which will be regularly reported to the three major credit bureaus. Full, on-time payments can help cardholders increase their line of credit and improve their credit score.
This card comes with $0 annual fee. After you’re approved and you make your security deposit, you’ll receive your card in as few as two weeks to start making purchases and building your credit.
- Fraud Coverage – You’re covered by $0 Fraud Liability if your card is ever lost or stolen
- Emergency Card Services – If your credit card is lost or stolen, you can get an emergency card replacement and a cash advance, subject to available credit
- Mastercard ID Theft Protection™ – Available to help should you become the victim of Identity Theft
|Card||Ongoing Purchase APR||Annual Fee||Intro Bonus||Credit Needed||Key features|
|Capital One Platinum Secured Credit Card||26.99% Variable||$0||None||Limited, Bad||Credit-building|
What we like about it
For people who can’t get approved for cards requiring higher credit scores, the Capital One Platinum Secured Credit Card provides an entry to building up credit, as long as payments are made on time. The required refundable security deposit means you’re likely to be approved. No interest is applied to the security deposit. As long as you’ve paid off your entire balance, you’ll receive it back once you close your account.
Even though this is a secured credit card, you still get similar benefits to Capital One unsecured credit cards. You can choose a personalized monthly due date and payment method, including online, by check or at a local branch. Better yet, just sign up for the Autopay feature so your payments are automatically deducted from your savings account. You can get personalized mobile or email reminders that help you stay on top of your account so you can make on-time payments.
Have an issue? Capital One cardholders get 24/7 customer service. Security features include notifications of potentially suspicious transactions, $0 fraud liability and the ability to pay with virtual card numbers online. If your card does happen to get lost or stolen, you can lock your card in the mobile app.
The Capital One Platinum Secured Credit Card also features a great travel benefit such as no foreign transaction fees.
Things to Consider
It’s to be expected with a secured credit card, but the initial credit limit of $200 for a $49 security deposit for the Capital One Platinum Secured Credit Card is pretty low. Some cardholders who have reviewed the card mentioned increasing the limit is slow to non-existent.
Cardholders who are late with payments will have to pay a fee of up to $40 for each late payment.
This card comes with no rewards program, as well. For some, simply being able to rebuild credit is rewarding in itself, but those who want a rewards program with a secured credit card have at least one option, the Discover it® Secured card.
Capital One Platinum Secured Credit Card credit building details
To qualify for Capital One Platinum Secured Credit Card, cardholders must make the minimum required security deposit of $49 to get an initial credit line of $200. Depositing a higher amount of $99 or $200 will give cardholders access to a higher credit line.
Cardholders will also be automatically considered for a higher credit line in as little as 6 months with no additional deposit needed. For cardholders using this card who want to get the highest credit line possible, it’s best to make a $200 deposit and make all of the monthly payments on time.
Cardholders can avoid fees and the high APR by making all payments on time, in full. During the credit-building process, it’s best to only use the credit card for purchases that can be paid on time. That will require discretionary spending and budgeting, but a result of a higher credit score and line of credit may be worth it.
Capital One Platinum Secured Credit Card fees
Late payments require a fee of up to $40. For a cash advance, the fee is 3% of the amount of the cash advance, but not less than $10. These fees are fairly standard, especially for unsecured credit cards.
A benefit with the Capital One Platinum Secured Credit Card is that there are no annual fees, no foreign transaction fees and no transfer fees. As long as cardholders use the card responsibly, they can avoid late payment fees as they build their credit.
How does it compare to other credit-building cards?
If you want to build credit with a secured credit card, you have additional options. The Discover it® Secured credit card also requires a refundable security deposit that affects how high your credit line is. A $200 deposit gives cardholders access to a $200 credit line, while a $500 deposit gives cardholders access to a $500 credit line.
The Discover it® Secured credit card enables cardholders to earn 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases every quarter, automatically. Plus, earn unlimited 1% cash back on all other purchases. If you’re able to afford a higher minimum deposit, you can get a lower APR and better rewards with this card compared to the Capital One Platinum Secured Credit Card.
Please Note: Information about the Discover it® Secured has been collected independently by TheSimpleDollar.com. The issuer did not provide the details, nor is it responsible for their accuracy.
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