Secured credit cards are an excellent way to build or rebuild a credit score and change your financial future. Most of these secured credit cards approve your card’s application even with the lowest credit score.
The Platinum Secured Credit Card from Capital One is undoubtedly among the top choices for secured credit cards. If you want to start rebuilding your score, this $0 annual fee credit card offers an incredible opportunity for a minimal deposit.
But how does it work? And is it ideal for your situation? This Platinum Secured Credit Card review explores this and more.
Features of the Platinum Secured Credit Card from Capital One
Among the most attractive features of this card is the absence of an annual fee. The card charges a $0 annual fee, making operating pretty cheap. Even better, you can check if you are pre-approved at no cost or risk affecting your credit score.
Additionally, the security deposit required for this card is flexible. For instance, you have three minimum deposit options – $49, $99, and $200, whichever suits your budget and shopping goals.
Usually, if you manage your account responsibly, you can receive your deposit back. This allows you to upgrade to the card’s higher version, the Unsecured Platinum Card.
Additionally, with this card, you have a chance to be approved for a higher credit line after six months. This means that your deposit amount stops being your credit limit.
Lastly, the card reports your activities directly to the main credit bureaus. This way, you can watch your credit score grow with every responsible purchase and payment on the card.
How the Platinum Secured Credit Card from Capital One Works
The first step in acquiring your Platinum Secured Credit Card is making your application and depositing a minimum of $49, $99, or $200. Your deposit usually determines your initial credit limit.
However, if you use the card responsibly and pay for your timely purchases, you can get a credit limit rise in about six months. Also, this is a chance to improve your credit score.
If you want a higher credit limit, you can increase your deposit. The maximum amount you can deposit is $10,000. This is also the maximum credit limit for a new cardholder.
After your card is approved, all you need is to make your purchases, pay on time, and grow your credit score. With time, the Capital One Platinum secured credit card graduate to Unsecured Platinum Credit Card.
This credit card has no annual fee, but the APR can be relatively high. While the 30.74% variable APR is within the range for most secured credit cards, it’s still high.
Pros and Cons of the Platinum Secured Credit Card
Why should you consider the Platinum Secured Credit Card from Capital One? Also, why might it not be the ideal card for your journey to rebuilding your credit score?
Let’s find out:
Benefits of the Platinum Secured Credit Card from Capital One
The first benefit is the balance transfer feature. This allows you to transfer even your high-interest balances to Capital One and save some money.
The credit card also boasts a $0 annual interest fee. This reduces the cost of operating the credit card.
Additionally, the card allows you to add an authorized user. And you can set up automatic payments to avoid late payments.
Even better, you are not liable for any fraudulent activities on the card. The $0 fraud liability feature cushions you against this.
Last but not least, the card is ideal for international travel and transactions as it has no foreign transaction fees.
Cons of the Platinum Secured Credit Card from Capital One
The 30.74% variable APR is relatively high. So, if you miss your payments, the charges can get really high.
Also, this credit card lacks the intro purchase and balance transfer APRs. This is a real bummer for many people aspiring to get this card.
Lastly, the card doesn’t have a rewards system. Therefore, while you can re-establish your credit history, no Capital One Platinum secured credit card rewards for shopping are available.
Rates and Fees of the Platinum Secured Credit Card from Capital One
The rates and fees of the Platinum Secured Credit Card are as follows: First, the card has an ongoing variable APR of 30.74%. This applies to purchases, balance transfers, and cash advances. Luckily, there is no penalty APR.
When it comes to fees, the first major one is the cash advance fees. This amounts to 3% of the transaction or $3, whichever is greater. The transactional fee for balance transfers amounts to 4% of the transaction.
The late payment fee is the last on this list. Luckily, there are no annual fees or foreign transaction fees.
Eligibility Criteria and Requirements
This credit card is tailored especially for individuals with poor or bad credit scores. However, before getting approved for the card, you must be able to make a minimal deposit. This can be $49, $99, or $200, which is the credit limit.
Additionally, you must be an adult, 18 years or older, and have a social security number. The next requirement is that you be a US resident. You must reside in any of the US states, Puerto Rico, Washington DC, or any US military base.
Your monthly income is also of high concern. It must exceed your monthly mortgage or rent expenses.
Application Process of the Platinum Secured Credit Card
So, how do you apply for the Platinum Secured Credit Card from Capital One? It is simple!
Visit their official website, CapitalOne.com, and look for the pre-approved or the apply now button. You can start by checking if you are pre-approved at no cost or risk. And if you want to get into the application directly, click the Apply Now button and complete the online form.