Capital One Secured MasterCard Credit Card Review

By Dan Rafter / August 21, 2015
Capital One Secured MasterCard Review

Capital One® Secured MasterCard

Capital One Secured MasterCard Review

CreditShout Rating

Features:

  • $49, $99 or $200 Security Deposit - Depending on Creditworthiness
  • $200 - $3,000 Credit Line, plus opportunity to earn an unsecured line
  • Reports to all 3 credit bureaus
  • MasterCard benefits like extended warranties, price protection, and car rental insurance
  • $0 Fraud Liability
  • 24/7 Customer Service
  • Credit Score Tracking

Fees:

  • $0 Annual Fee
  • 24.99% APR on Purchases, Transfers and Cash Advances
  • Purchase APR commences 25 days after closing of your billing cycle
  • Cash Advance Fee is greater of $10 or 3%
  • Late Payment Fee is up to $35
  • All APRs listed are variable based on the Prime Rate

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Verdict: If your credit scores are low, you may struggle to qualify for most conventional credit cards. You’ll also find that most lenders don’t want to help you borrow money to finance a car or pay for a new home. You can build your credit scores to more acceptable levels, though, with a secured credit card.

The Capital One Secured MasterCard is an example of this: If you take out this card, you can steadily build your creditworthiness in the eyes of lenders.

Overview

A secured credit card works differently than does a traditional card, and the Capital One Secured MasterCard is no exception. The amount of credit available to you is equal to the security deposit you put down as collateral. If you put down a $500 security deposit, that’s the amount of money you can charge on your card.

How This Card Works

You can qualify for a credit limit of $200 to $3,000 with the Capital One Secured MasterCard. It all depends on the size of your initial security deposit. This deposit is important; it’s what allows Capital One to take a risk on consumers with bad credit scores. If you fail to pay your credit card bills, Capital One can merely keep your security deposit. That way, it won’t lose any money even if you do default on your credit debts.

Since the Secured MasterCard participates in the Credit Steps program, you have the opportunity to earn an increased credit limit without increasing your security deposits. 

Your card is automatically enrolled in Credit Steps. It is​ up to you to get an unsecured credit line by making your payments on time and not exceeding your credit limit.

Benefits

In addition to Capital One's Credit Steps, this Secured MasterCard can build your credit scores to higher levels. You can then apply for credit cards with lower interest rates and rewards programs.

The Capital One Secured MasterCard reports your payment history automatically to the three national credit bureaus, TransUnion, Experian and Equifax. If you make your payments on time, the bureaus will gradually adjust your score upward.

Plus, Capital One eliminated the annual fee this card used to carry.

Conclusion

The Capital One Secured MasterCard is currently featured in our Guide to Best Cards to Build Credit and Guide to Best Secured Credit Cards as our top pick for secured credit cards available today.

Pros:

  • Allows consumers with weak credit to build their credit scores
  • Eligible for Credit Steps credit line increases
  • Automatic reporting to all 3 credit bureaus

Cons:

  • High interest rate of 24.9% Variable APR
  • Limited amount of credit

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