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Capital One Secured MasterCard: Good Choice for Bad Credit

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The Capital One® Secured MasterCard® is a good choice if you’re looking to boost your credit score. It has no hidden charges and an annual fee of $0The ongoing APR is 24.9% (Variable), which is a bit high, but even so, it’s one of our 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.

Capital One Secured MasterCard Credit Card
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on Capital One's
secure website

Flexible security deposit with room to grow

Like all secured credit cards, the Capital One® Secured MasterCard® 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 Credit Card

Capital One® Secured MasterCard®

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Pros

  • Qualify with limited / bad credit
  • No annual fee
  • No foreign transaction fee

Cons

  • No rewards
  • High APR

Sign-up Bonus

You may qualify for a credit line increase based on your payment history and creditworthiness - no additional deposit required

Annual Fee

$0

Intro APR Promotions

None

APR

  • APR: 24.9% (Variable)
  • Cash Advance APR: 24.9%, Variable

Card Details

  • No annual fee, with all the credit building benefits
  • Unlike a prepaid card, it builds credit when used responsibly, with regular reporting to the 3 major credit bureaus
  • Get free access to your credit score and learn how everyday decisions can affect your score using Capital One® Credit Tracker
  • Your minimum security deposit gets you a $200 credit line
  • You may qualify for a credit line increase based on your payment history and creditworthiness with no additional deposit required
  • Easily manage your account 24/7 with online access, by phone or using our mobile app
  • It’s a credit card accepted at millions of locations worldwide

Higher-than-average APR isn’t necessarily bad

If you’re approved for the Capital One® Secured MasterCard®, the APR will apply right away — there’s no introductory period with 0% interest. However, most credit cards for bad credit don’t offer a low APR introductory period, anyway. Furthermore, a lower APR doesn’t guarantee you’ll pay less in the long run.

The Orchard Bank® Classic MasterCards has a much lower APR of 7.9%, but its $39 - $59 the first year, $35 - $59 per year thereafter*, which is higher than the Capital One® Secured MasterCard®’s annual fee. The low APR makes the Orchard Bank® Classic MasterCards competitive, but not necessarily a better deal if you make all your payments on time and in full. If you’re doing both of these things, the APR doesn’t matter since you won’t incur interest.

Consider your options

If you have no or bad credit, your choices are limited. If you’re trying to rebuild bad credit, the Capital One® Secured MasterCard® is well known for a low minimum security deposit. Using any secured credit card responsibly will help you build your credit score and allow you to graduate to a card with lower fees and/or a rewards program.

Unsecured Credit Card Secured Credit Card Prepaid Debit Card
Affects credit score?
Upfront Deposit?
Line of Credit?
  • raymond Alex

    I just got approved for a Capital One credit card, I was ask to pay $49.00 so I said no problem you have my permission. Is there anything I should know before using this card?

    • Kh

      Did you get your card yet?

  • vacuumation

    I went through a soft-check ‘Pre Approval’ process on Capital One’s website, yet this card didn’t come up. In fact zero cards did! My FICO score isn’t too bad, in the 645 range, but I don’t have any recent credit history. I’ve thoroughly cleaned up my credit report. About 10 years ago, fresh out of college, I opened several credit cards that later got charged-off — including a $500 CapOne Platinum. This card was then sold to a collection agency over 4 years ago.

    So, would that status of the past charge-off with CapOne hamper my ability to be approved for even this Secured card?

  • vacuumation

    This CapOne Secured card is listed here as having no Annual Fee. How have you been charged for it?

  • vacuumation

    Your #3 says you pay a $29 annual fee for the CapOne Secured card, but here on Nerdwallet we see it’s promoted as not having an Annual Fee. What gives?

  • Happy Dance

    I am being charged 59.00 a year.

  • Brian

    And what is the reason that you aren’t paying attention to your card statement and just letting the bank know you opt-out of such increases? Based on your responses to the other threads, I would love to see that you can indeed opt-in at some point to such reviews and that this all could have been handled and managed by you being just as responsible as you demand your card issuer to be and advise them you do not wish to receive automated increases.

    You are causing a problem for no problem at all. These are the types of non-issues and useless complaints that screw it up for the rest of us.

  • MeMeMe

    Are you in the States? Your laws seem to be different than ours are here. If you read through my comments, then you know that in CANADA, it is illegal….end of discussion!