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The Capital One Platinum Secured is one of the best cards for rebuilding credit. If you don’t have a ton of money to put down as a security deposit, but you’re still trying to build up your credit score, this card is a good choice.
Capital One Platinum Secured
This card is best for people who can’t get approved for traditional credit cards and want to improve their credit scores. It also is good for people who don’t have a lot of money saved to put down for a deposit.
We also recommend this card for people who are able to pay their bill in full each month. This will help your credit score, and you’ll also avoid paying the high interest charges that come with this card.
Keeping your balances low saves you on interest, and it keeps your credit utilization ratio low, too. Utilization ratio shows how much of your total available credit has been used, and it is an important factor in your credit score.?
Pros Explained
- No annual fee: You won’t have to worry about an annual fee with this card. And if you pay your bill in full and on time each month, you won’t have to worry about any other charges either, making this card totally free to use.
- Partial security deposit for some cardholders: Capital One may require you to put down one of three different deposit amounts ($49, $99, or $200) to get access to a $200 credit line. If you pay only $49 or $99, then your deposit is only partially secured, and you get the benefits of a bigger credit line for less money upfront.
- Higher credit limit for on-time payments and higher deposits: Make your monthly payments on time, and Capital One will automatically consider increasing your credit line after six months. This, too, can help increase your credit score by improving your utilization ratio.
Cons Explained
- High interest rate: The Capital One Platinum Secured has a relatively high-interest rate. That means you’ll pay a lot in interest if you carry a balance from month to month. On the flip side, if you pay off your charges in full each month, Capital One won’t charge you any interest at all.
- Low maximum credit limit: A $1,000 credit limit isn’t much. You could get a higher credit limit with competing cards.
According to The Balance’s analysis of credit card interest rates, average credit card interest rates stood at %, as of . The average interest rate for secured cards was about the same %.
Capital One Platinum Secured’s Excellent Perks
This isn’t a rewards card, but it does offer one perk under the general Capital One umbrella that you might find useful:
- No Foreign Transaction Fee: Use the card when traveling abroad and you won’t pay extra in fees. Many competing cards https://loansolution.com/installment-loans-nm/ charge a fee.
Capital One Platinum Secured’s Other Features
- Creditwise from Capital One
- ATM location services
- ENO assistant
- Card lock
Customer Experience
Capital One has a decent reputation for customer service. In the J.D. Power 2021 U.S. Credit Card Satisfaction Study, it ranked third out of 11 national credit card issuers. It scored 818 points, above the average of 809.
The company does, however, make it easy to work with them. If you have questions about your account, you can call customer service 24 hours a day, seven days a week. Aside from your online account, you also can manage your account from a mobile app. You can even text a chatbot assistant named Eno to answer simple questions about your account.
Capital One also offers a free credit monitoring service called CreditWise. Anybody, even noncustomers, can sign up. The service provides details about your credit reports, shows you a credit score, and monitors your credit.
Security Features
If you’ve signed up for CreditWise, you’ll get alerts if your Social Security Number or other identifying information is found on the dark web.
If you lose your card or otherwise want to prevent it from being used, you can lock it via the app. Capital One also offers free virtual credit card numbers for online transactions.
Capital One Platinum Secured’s Fees
The Secured Mastercard from Capital One doesn’t hit cardholders with a lot of fees. If you make your payments on time and pay off the balance in full each month, there won’t be any other fees or interest charges.