Capital One Secured MasterCard: Good Choice for Bad Credit
Capital One® Secured MasterCard®
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 $0. The 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.
on Capital One's
on Capital One's
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.
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.
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