Capital One Quicksilver Secured Review: A Credit-Building Rewards Card

The Capital One Quicksilver Secured Cash Rewards Credit Card — the secured version of the Capital One Quicksilver Cash Rewards Credit Card — is a competitive and rewarding option for those with poor or limited credit.

The $0-annual-fee card requires a refundable security deposit of at least $200 and earns rewards — the latter of which makes it stand out from other secured credit cards. And because the card reports to all three major credit bureaus and offers a chance to graduate to an unsecured product, it can act as a steppingstone to a regular credit card.

Capital One Quicksilver Secured Cash Rewards Credit Card: Basics

Card type: Secured.

Annual fee: $0.

Security deposit: A minimum refundable deposit of $200 is required. Your deposit will determine your credit line. Cardholders can deposit more to increase their credit line — up to a range of $1,000 to $3,000, within 35 days of being approved and before card activation.

Sign-up bonus: None.

Rewards: Unlimited 1.5% cash back on most purchases, plus 5% back on hotel and rental car purchases through Capital One Travel.

Interest rate: The ongoing APR is 29.99% Variable APR.

Balance transfer fee: None. (3% for any promotional APRs offered.)

Foreign transaction fee: None.

Other benefits:

• Payments are reported to all three major credit bureaus: TransUnion, Equifax and Experian.

• Capital One offers a free credit monitoring tool called CreditWise that can help account holders keep track of their credit scores.

» MORE: NerdWallet's best secured credit cards

Why you might want the Capital One Quicksilver Secured Cash Rewards Credit Card

It earns rewards

With the Capital One Quicksilver Secured Cash Rewards Credit Card, you’ll earn 5% cash back on hotel and rental car purchases through Capital One Travel and an unlimited 1.5% cash back on all other purchases, which is a rarity among other secured credit cards. A rewards program is not paramount when it comes to building credit with a secured card — using your card responsibly should be your main focus. But the ability to earn rewards while also building up your credit is an appealing offer.

Cash back earned with the card can be redeemed, at any time and at any amount, for a variety of options including reimbursement for purchases, statement credit, payments through PayPal, Amazon purchases and gift cards.

There’s an opportunity to upgrade

With responsible cardholding habits that positively impact your credit score, such as consistent on-time payments, holders of the Capital One Quicksilver Secured Cash Rewards Credit Card can graduate to an unsecured rewards-earning Quicksilver card from the issuer like the Capital One Quicksilver Cash Rewards Credit Card. Once you’ve upgraded to a regular card, you’ll get your initial deposit back and all other card features will remain the same.

You can increase your credit limit

Holders of the Capital One Quicksilver Secured Cash Rewards Credit Card will be considered for an automatic credit line increase after at least six months of having the card. A credit line increase will be determined by your payment history as well as your creditworthiness. There’s a maximum credit limit range of $1,000 to $3,000, which will also be based on your credit score and history.

A higher credit line can potentially positively impact your credit score, by lowering your credit utilization ratio, or how much of your available credit you use. It’s advisable that you do not use more than 30% of your available credit.

It doesn’t charge any fees

The card doesn’t charge a yearly fee to carry it, which isn't always the case with secured credit cards. Not having to pay an annual fee can make it easier to focus on making payments on time and building up your credit.

The card doesn't charge a foreign transaction fee either, which means it can be a good option to take abroad.

» LEARN: Our guide to choosing a secured credit card

Why you might want a different credit card

There are more accessible options

The card’s $200 minimum deposit is on par with what most secured cards require. But pulling together the cash for an upfront deposit that high may prove difficult for some. There are secured cards that offer more flexible deposit options.

For example, with the $0-annual-fee Capital One Platinum Secured Credit Card — another secured card from the issuer — you may be able to put down a lower initial deposit of $49 or $99 for a $200 credit line. This makes the card accessible to those who may be unable to pay a large sum upfront. However, the card doesn't earn rewards like the Capital One Quicksilver Secured Cash Rewards Credit Card does.

Even more flexible is the Petal® 2 "Cash Back, No Fees" Visa® Credit Card (issued by WebBank), which doesn't require a security deposit at all. Unlike most other secured cards, you won’t be required to put down an upfront deposit once approved.

Additionally, the card doesn’t always rely solely on credit scores when determining eligibility. Rather, it uses a nontraditional underwriting model that considers things like applicants' expenses, savings, debts and income. This card can potentially earn up to 1.5% cash back on all purchases with on-time payments and charges an annual fee of $0.

There are additional alternative card options that don’t require credit checks or even bank accounts, in some cases.

» SEE: These credit cards don’t run credit checks

It charges a high APR

Like most secured cards, the Capital One Quicksilver Secured Cash Rewards Credit Card charges a high interest rate. The ongoing APR is 29.99% Variable APR.

However, it’s important to note that you won’t be charged any interest if you make your card payments on time and pay in full every billing cycle.

Is the Capital One Quicksilver Secured Cash Rewards Credit Card right for you?

The card is a good deal for those with limited credit. It comes with key features for secured cards — complete credit reporting, an upgrade path and an automatic credit limit review. Plus, holders can earn rewards with the card while building up their credit, which is not a usual benefit among other secured products.

However, if the $200 minimum required deposit poses a challenge, there are alternative and more flexible card options that may be more accessible.