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Q: After several attempt for credit cards and being denied, what is the best type of secured card? I have debit cards and do well but a credit card is needed for car rental. What do you suggest?
A: While it’s hard to say the best card for your personal situation (since everybody’s card use is different), the Capital One Secured MasterCard is a good option if you’re not planning on carrying a balance.
From your question, it sounds like you aren’t.
If you just want to use your card for things like car rentals and hotel rooms, this is a good card for you. It can also help you rebuild your credit, since it reports to the three credit bureaus. This is essential in a secured card if you want to raise your credit score.
The reason the Capital One Secured card is bad for those who don’t pay off their balances every month is because of the extremely high interest rate. The current rate is 22.9%, although it varies with the market rate. Those who plan on carrying a balance should get a card like the Public Savings Open Sky card with a much lower rate. But that’s a different story.
The Capital One Secured MasterCard has no annual fee. This is great, as many secured cards charge an annual fee and hold a security deposit. L
ate fees are pretty low, too: just $19 compared to $35 for many debit and credit cards. As with all secured cards, you also have to pay an initial fee to “secure” the card. Depending on your credit worthiness, you deposit $49, $99, or $200 in order to get the minimum $200 credit limit.
If you want a higher credit limit, you can pay more up front.
You will get this money back if you cancel the card and don’t owe Capital One anything.