People with bad, poor or no credit history may build it with the Capital One® Secured MasterCard. This is one of the most affordable solutions since all you need to start is $49.
How to use the card
The Secured MasterCard® from Capital One® is actually partially secured, and may provide you with a credit line higher than your deposit. To open an initial credit line of $200, you have to deposit either $49, or $99, or $200. The precise amount depends on the assessment of your credit history.
Once you’ve made five monthly payments on time, Capital One® may increase your credit limit without asking for additional deposit. And it doesn’t matter here whether you are paying balances in full or making just minimum monthly payments, both will work.
Here is how you can use this card for efficient growing your credit history and credit score:
- Whatever credit limit you have, use up to one third of it. This will keep your utilization rate at an appropriate level.
- Make your payments in full and on time. You can pick your own due date and payment methods and set up Autopay for your account.
- Monitor your progress with CreditWise. This app provides you with an access to your credit score for free and helps follow its changes.
And most importantly, Capital One® reports on their cardholders to all three credit bureaus. So your efforts to a better credit score will not go unnoticed. What’s more, Capital One® reports this secured credit card as unsecured. That may play to your advantage during your further credit applications.
You meet basic requirements if you’re at least 18 years of age, have an address in the US and valid SSN, and hold a savings or checking account.
You most likely don’t qualify for this card if:
- You have an unresolved bankruptcy;
- Your monthly income exceeds your monthly rent or mortgage payments by less than $425;
- You hold already more than one card from this bank;
- Your current Capital One® account is in a past due status; or there were overlimits and charge-off statuses within the past year.
Costs and rewards
The card has neither annual fee, nor other maintenance fees, and may cost you $0 per year. This allows keeping your account open as long as you need to add more points to your score.
As many secured credit cards, this card doesn’t offer any rewards. But you may enjoy all those additional benefits available for MasterCard cardholders like extended warranty or price protection.
The bottom lineThis semi-secured credit card is the ideal low-cost solution for any credit novice. You may start using it with a low deposit of just $49, and there is no annual fee. What’s more, nobody will ever know that your card is secured since it is reported as unsecured.
Used smartly, the Secured MasterCard® from Capital One® helps improve your credit score in a fast way with little money. If this is your purpose, you should definitely give it a try.