Are you struggling with a less-than-ideal credit score? If so, a secured credit card could be the solution you’ve been looking for. However, many secured cards require a security deposit equal to your credit limit. Luckily, there’s an alternative that allows you to put down less collateral while still improving your creditworthiness. Welcome to the world of the Capital One Platinum Secured Credit Card!
A Closer Look at the Capital One Platinum Secured Credit Card
The Capital One Platinum Secured Credit Card offers a credit line starting at $200, with security deposits as low as $49 for eligible applicants. In some cases, you may qualify with a security deposit of $99 or $200. Plus, there’s no annual fee and even those with bad or limited credit may be eligible. While the card doesn’t offer many additional benefits and has a high ongoing APR, it’s still a solid option if you’re looking to bypass the typical security deposit requirements.
Capital One Platinum Secured: Pros and Cons
Let’s weigh the pros and cons of the Capital One Platinum Secured Credit Card:
Pros:
- Security deposit of $49, $99, or $200 to secure a $200 credit line.
- No annual fee or foreign transaction fee.
- Possible eligibility even with bad or limited credit.
Cons:
- No rewards program.
- No welcome offer.
- High ongoing APR.
- Security deposit amount varies based on creditworthiness.
Who is the Card for?
The standout feature of the Capital One Platinum Secured Credit Card is the ability to obtain a $200 credit line with a refundable security deposit as low as $49. This makes it an excellent choice for individuals who want to build their credit but don’t have the $200 typically required for a secured credit card.
Interestingly, the lower deposits of $49 and $99 are available based on your creditworthiness. If your credit score is on the lower end, you may still need to provide a $200 deposit to open this card. However, if your credit is only slightly damaged, you might qualify for a lower deposit, making this an attractive option.
Capital One doesn’t specify a specific credit score requirement for this card, but it does state that it’s intended for people whose credit level is “rebuilding.” This includes individuals who have defaulted on a loan more than once or have been declined for a credit card in the last three months. If either of these situations applies to you, the Capital One Platinum Secured Credit Card might be the right choice to rebuild your credit.
Features
While the Capital One Platinum Secured Credit Card may not have an extensive list of features, it does offer a few extras worth considering:
Security deposits are refundable
Unlike many other secured credit cards, the Capital One Platinum Secured Credit Card allows for refundable security deposits. This means that with responsible credit card use, you have the opportunity to upgrade to an unsecured Platinum card later, without losing your deposit.
Credit Bureau Reporting
Capital One reports on-time payments to the three major credit bureaus: Experian, TransUnion, and Equifax. This is especially beneficial for individuals rebuilding their credit, as responsible credit card use can help improve their credit score. It’s important to note that late payments and delinquent accounts are also reported, so making payments on time is crucial for maximizing credit score improvement.
Minimal Fees
Unlike some secured credit cards that come with excessive fees, the Capital One Platinum Secured Credit Card keeps fees to a minimum. There’s no annual fee, no foreign transaction fee, and no additional fees that may add up over time.
Credit Line Increases Possible
You have the opportunity to increase your credit limit from the initial $200 in two ways. Firstly, you can deposit more funds, up to a maximum of $1,000. Secondly, after six months of responsible credit card use, you may be automatically considered for a credit line increase without requiring an additional security deposit.
The Fine Print
Here are some key details you should know about the Capital One Platinum Secured Credit Card:
- Annual fee: No annual fee.
- Purchase intro APR: No introductory APR available.
- Balance transfer intro APR: No introductory APR available.
- Regular APR: [reg_apr,reg_apr_type]
- Cash advance fee: [cash_advance_fee]
- Balance transfer fee: [balance_transfer_fees]
- Foreign transaction fee: [foreign_transaction_fee]
- Late fees: Up to [late_payment_fee].
- Returned payment fee: $0.
Additional Hidden Perks
In addition to its core features, the Capital One Platinum Secured Credit Card provides a basic set of hidden perks:
- $0 fraud liability: You won’t be held responsible for unauthorized charges if your card is lost or stolen.
- Card lock: Easily lock your card in the Capital One mobile app if it’s misplaced, lost, or stolen.
- Digital assistant: Capital One’s digital assistant, Eno, can send you important alerts about unusual activity or potential mistakes on your account.
- CreditWise: Get alerts regarding any changes detected on your TransUnion or Experian credit report.
- Mastercard ID Theft Protection™: Available from Mastercard, this service monitors your credit file and alerts you to any suspicious activity. You can also seek assistance from a resolution specialist.
While these benefits are standard and can be found with many other cards, it’s reassuring to know that Capital One offers such additional protections to its cardholders.
What Could Be Improved
The Capital One Platinum Secured Credit Card isn’t without its drawbacks. One area that could use improvement is its regular APR, which stands at [reg_apr,reg_apr_type]. Carrying a balance on this card could prove costly, especially compared to other secured credit cards with significantly lower APRs. For instance, the OpenSky® Secured Visa® Credit Card offers a 22.64% variable APR, and there are even secured cards that don’t charge any interest at all.
Another aspect that could be enhanced is the absence of a rewards program. While rewards aren’t typically a standard feature for secured credit cards, the Capital One Platinum Secured Credit Card does offer cash back in various spending categories. It would be a valuable addition if Capital One extended this reward program to the Platinum Secured Card.
Lastly, the Capital One Platinum Secured Credit Card lacks a welcome offer or introductory APR, which could be appealing to cardholders looking to earn some free cash back or transfer balances at a low APR. Currently, these features aren’t available with this card.
Card Alternatives
If the Capital One Platinum Secured Credit Card doesn’t meet all your requirements, here are some alternatives to consider.
Bottom Line
The Capital One Platinum Secured Credit Card is a valuable option for individuals looking to establish or rebuild their credit without having the necessary funds for a $200 security deposit. With minimal fees and the potential for credit line increases or upgrades to an unsecured card, it offers a solid path to credit improvement. However, if you’re looking for a lower APR, a welcome offer, or the ability to earn rewards on your purchases, there may be better options available to you.
For more information on personal finances and credit management, visit Personal Finances Blog.