Credit Cards

How Often Does Capital One Increase Credit Limit On Secured Card

By David Krug David Krug is the CEO & President of Bankovia. He's a lifelong expat who has lived in the Philippines, Mexico, Thailand, and Colombia. When he's not reading about cryptocurrencies, he's researching the latest personal finance software. 4 minute read

Capital One’s Secured Mastercard® is an easy-to-use credit card without any hidden fees or costs, perfect for those who are just starting out and want to establish or improve their credit. 

It’s a secured credit card that calls for a low minimum opening deposit of $49, has a somewhat high regular annual percentage rate (APR), and a relatively limited credit limit to start. However, if used sensibly, Capital One’s Secured Mastercard can serve as a stepping stone to a card with a bigger credit line and better rewards.

The BankAmericard Secured Credit Card is another secured credit card option for people with low or nonexistent credit scores, and this one is similar.

It’s worth noting that this card lacks a number of features that are common among other credit cards, such as cash back or travel incentives and early spend bonuses. This doesn’t imply, though, that it isn’t a potentially life-changing card for those who need to boost their credit.

Important Characteristics

These are the main benefits of the Capital One Secured Mastercard.

Deposit for Security

A minimum deposit of $49 is required to activate this card. The specific sum and your credit limit are both determined by your individual creditworthiness as determined by Capital One.

Credit Line Expansion

You may be eligible for a credit line increase after as little as six months of responsible card use. Consistently prudent usage of the credit line may result in future increases.

Important Charges

There aren’t any hidden costs associated with using this card. Fees for cash advances are the greater of $10 or 3% of the amount advanced.

Capital One CreditWise

A free credit score is yours to keep every month courtesy of Capital One’s CreditWise suite, which is included in both the paper and digital versions of your monthly bill. If you have an online account, your score is also viewable in the account dashboard at any time. There is a wealth of resources and information available inside CreditWise for those looking to improve their credit.

Credit Required

Consumers with poor or nonexistent credit histories can use this credit card, which is offered specifically to them. There is no need to worry if your credit is less than perfect.

Pros

Capital One’s Secured Mastercard includes the following benefits.

  1. There is hardly any of a down payment required right now. Depending on your credit history, you may start an account with as little as $49 and get a credit limit of $200 or more. That’s a major perk in comparison to secured rivals, some of which need deposits of $200 (or more) just to activate a card.
  2. There is no obligatory yearly cost. You won’t have to worry about paying an annual fee with this card. There are yearly fees associated with several of its nearest competitors, including the BankAmericard Secured Credit Card ($39) and the Citi Secured Mastercard ($25).
  3. There are no balance transfer fees or foreign transaction fees. When it comes to establishing or improving credit, it’s unusual to find a vehicle that doesn’t impose costs for making balance transfers or using it abroad. This is excellent news for Capital One Secured Mastercard customers who want to make balance transfers or use their card outside the United States.
  4. There will be no increased interest rate for late payments. If you occasionally have trouble making a payment, you’ll like the fact that this card does not have a penalty APR. Penalty annual percentage rates (APRs) are associated with both the OpenSky Secured Visa and the Citi Secured Mastercard (the latter’s APRs go as high as 29.99%).
  5. Potential for a Credit Limit Increase in as Little as 6 Months. If you make responsible use of your card, your credit limit may be increased in as little as six months. However, with many rival cards, you may have to wait as long as a year before you can even ask for an upgrade. A year is a long time to wait whether you need the money for an urgent purchase or you just want more freedom in your monthly budget.
  6. Tools that help in keeping tabs on and improving credit. For cardholders serious in constructing and understanding their credit, the free credit score and other Capital One CreditWise products are invaluable resources. When compared to the BankAmericard Secured Credit Card, several alternative cards don’t provide free credit scores.

Cons

Prior to applying, think about the cons listed above.

  1. Zero Benefits. Capital One’s Secured Mastercard does not provide any kind of cash back or incentives on purchases. QuicksilverOne Cash Rewards Card ($39 annual fee) and Navy Federal Credit Union nRewards Secured Credit Card are two cards that can let you do both while also offering rewards (no annual fee).
  2. Annual percentage rate is quite high. This card has a high regular APR, even for credit-building purposes. Consider cards with lower regular APRs, such as the Navy Federal Credit Union nRewards or the DCU Visa Platinum Secured, if you plan to carry a balance from month to month.
  3. A credit check is necessary before approval. If you want to apply for this card, you’ll need to get your credit checked first. A recent bankruptcy, foreclosure, or habit of delinquent on your record will certainly prevent you from being accepted for this card, but other significant credit blemishes are less likely to do so. Secured credit cards from Merrick Bank ($36 annual charge) and OpenSky ($35 annual cost) are two alternatives that don’t check your credit when you apply.

Bottom Line

The Capital One Secured Mastercard® is not, needless to say, a high-end credit card. When employed properly, though, it’s priceless. You could one day discover a genuine Platinum Card in your wallet if using this card helps you learn the importance of regular payments and living within your means.

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