Capital One Platinum Secured Credit Card is designed to help you build or rebuild your credit score. We’ll cover its main features, pros, and drawbacks to help you decide if it’s the right fit for you.
What is a Secured Credit Card?
A secured credit card requires you to use your own money as collateral. This means that once you are approved, you will need to deposit money from your checking or savings account to the card. The deposit can be $49, $99, or $200, depending on what Capital One decides. This deposit will then become your credit limit, starting at $200 and going up to $1,000.
You won’t get your deposit back until you either upgrade to an unsecured card or close your account in good standing. The primary reason to get this card is to build or rebuild your credit score. Once you’ve improved your credit, you can apply for better cards with more benefits.
Main Features of the Capital One Platinum Secured Credit Card:
- Credit Building: The main perk of this card is the opportunity to build or rebuild your credit score. Capital One reports to all three major credit bureaus, giving you a good chance to improve your credit.
- Refundable Deposits: You can earn your deposit back as soon as six months, depending on your creditworthiness and payment history.
- No Hidden Fees: There are no foreign transaction fees, replacement card fees, or authorized user fees.
- Automatic Credit Line Reviews: You can be considered for credit line increases in as little as six months.
- Account Alerts and Autopay: You can set up account alerts and autopay to ensure you never miss a payment.
- Zero Dollar Fraud Liability: If your card is lost or stolen, you won’t be held liable for unauthorized charges.
- Card Locks: You can temporarily lock your card if it’s lost or stolen.
- Free Access to CreditWise: Track your credit score and get tips to improve it with Capital One’s CreditWise tool.
- 50% Off at Capital One Cafes: Enjoy a 50% discount on handcrafted beverages at any Capital One cafe nationwide.
Understanding the APR and fees associated with this card is crucial
- Purchase APR: 30.74%. It’s high, but you can avoid interest by paying your balance in full and on time.
- Balance Transfer APR: 30.74%. Not ideal for balance transfers due to the high APR.
- Cash Advance APR: 30.74%. Additionally, you’ll pay a fee of either $5 or 5% of the cash advance amount, whichever is greater.
- Balance Transfer Fee: 4% of the amount if you receive a promotional APR.
- Late Payment Fee: Up to $40.
- Annual Fee: None. This is a significant advantage for those looking to build credit without additional costs.
Pros of the Capital One Platinum Secured Credit Card
- No Annual Fee: You won’t have to worry about any yearly costs.
- Credit Building: If you make your payments on time and keep your credit utilization ratio low, you can significantly improve your credit score.
Drawbacks of the Capital One Platinum Secured Credit Card
- No Rewards: This card doesn’t offer cash back, points, or spending bonuses. It’s purely for credit building.
Who Should Get This Card?
This card is ideal for individuals looking to build or rebuild their credit without incurring additional costs. If you are disciplined about making timely payments and keeping your credit utilization low, this card can help you improve your credit score.
Overall Recommendation
The Capital One Platinum Secured Credit Card is a solid choice for credit building. It offers essential features like no annual fee, automatic credit line reviews, and zero dollar fraud liability. However, if you are looking for rewards, you might want to consider other options like the Discover it Secured Card, which offers cash back on purchases.
Ultimately, the decision is yours. If building credit is your primary goal, this card is a great fit. But if you want to earn rewards while building credit, you might want to explore other secured card options.
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