Make your first five month-to-month payments on time, and you could get a higher credit limit from Capital One Secured Credit Card except having to credit score greater money. A higher credit score limit also offers you improved flexibility. But extra importantly, it can help your credit score by way of decreasing your credit utilization, a key element in your credit score. The lower your utilization, the better.
Additionally if you have a $200 credit limit and a balance of $60, your credit score utilization is 30%, which is about as excessive as you prefer it to go. If your credit line receives bumped up to, say, $500, your utilization drops to 12%.
Benefits of Capital One Secured Credit Card
No annual fee: You won’t have to fear about an annual charge with this card. And if you pay your invoice in full and on time every month, you won’t have to fear about any other fees either, making this card completely free to use.
Partial protection credit score for some cardholders: Capital One may also require you to put down one of three exclusive deposit amounts ($49, $99, or $200) to get entry to a $200 credit line. If you pay only $49 or $99, then your credit is only partially secured, and you get the advantages of a larger credit line for much less cash upfront.
The higher credit limit for on-time repayments and greater deposits: Make your first 5 monthly repayments on time, and Capital One Secured Credit Card will extend your credit line even further, up to a maximum of $1000. This, too, can assist extend your credit score by using enhancing your utilization ratio.
Cons of Capital One Secured
High-interest rate: The Capital One Secured Card has an especially high-interest rate. That means you will too much in interest if you raise a balance from month to month. On the flip side, if you pay off your fees in full every month, Capital One won’t cost you any interest at all.
Low credit limit: A $1,000 credit limit is not much. You may get a greater credit limit with competitor cards like the Discover it Secured and Wells Fargo Secured.
If you’re working to build a credit score, the Capital One Secured MasterCard is one of the better alternatives available. Its also flexible safety credit score requirements, low costs and improve possible make it a starter card.
No depend on which card you choose, the use of a secured credit card responsibly can assist you to build your credit score. Keep it up, and you have to be able to graduate to a card with lower charges and interest, higher rewards – and no security credit at all.
Capital One Secured Card’s Costs
The Capital One Secured Card doesn’t have cardholders with a lot of fees. If you make the repayments on time and pay off the balance in full every month, there won’t be any different costs or interest fees either.