This card is best for people who can’t get approved for traditional credit cards, and who want to improve their credit score. This card is also 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. Not only will this help your credit score, but you’ll also avoid paying the high-interest charges that come with this card.
Your credit utilization ratio shows how much of your total available credit has been used, and it is an important factor in your credit score.
No annual fee
Partial security deposit for some cardholders
Higher credit limit for on-time payments and larger deposits
High interest rate
Low maximum credit limit
- 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 first five monthly payments on time, and Capital One will increase your credit line even further, up to a maximum of $1000. This, too, can help increase your credit score by improving your utilization ratio.
- High interest rate: The Capital One Secured Card 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 competitor cards like the Discover it Secured and Wells Fargo Secured.
To improve your credit, aim to use less than 30% of your available credit limit. (Even better, try to use less than 10% of it.) This can be tricky with a low credit limit, so pay close attention to how much you spend on the card.
Capital One Secured Card’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:
- Travel accident insurance: If you, your spouse, or dependents die or become disabled on a trip paid for with this card, you’re covered for up to $100,000.
Capital One Secured Card’s Other Features
- Rental car collision insurance (secondary to your own policy)
- Extended warranty for purchases under $10,000 made with your card
- Price protection will refund the difference between the price you paid and any new, lower price
- Roadside assistance hotline and travel assistance services
Capital One has a decent reputation for customer service. According to a 2019 J.D. Power study, it ranked third among the biggest credit card issuers. It scored 807 points out of 1,000, just above the industry average of 806.
The company does, however, make it easy to work with them. If you have questions about your account, you can call up customer service 24 hours a day, seven days a week. Aside from your online account, you can also 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 non-customers, can sign up. The service provides details about your credit reports, shows you a credit score, and monitors your credit.
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 Secured Card’s Fees
The Capital One Secured Card 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 either.