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If you’re looking for a credit card to help you improve your credit or build a new credit profile, the Capital One Platinum Secured Credit Card could be a good option.
One of the main benefits of this card is that it offers a potentially lower security deposit ($49, $99 or $200) than most secured credit cards. That’s a great feature, since you could end up with a credit limit that’s higher than your required deposit. Plus, Capital One will review your eligibility for an increased credit limit after six months of responsibly using the card — which not every secured credit card does.
It works just like a normal, unsecured credit card. It also has one other major advantage over most cards geared to consumers with low credit scores: It doesn’t charge an annual fee.
The main downside to this card, however, is that it doesn’t offer cash back rewards. If you’d rather earn cash back than qualify for a potentially lower security deposit, the Discover it® Secured Credit Card or Capital One Quicksilver Secured Cash Rewards Credit Card may be a better fit.
Intro Purchase APR
N/A
Regular Purchase APR
29.99% (Variable)
Intro BT APR
N/A
Regular BT APR
29.99% (Variable)
Annual Fee
$0
Cash Advance Fee
5% of the amount of the cash advance, but not less than $5
Foreign Transaction Fee
None
Balance Transfer Fee
Balance Transfer Fee applies to balances transferred at a promotional rate
Flexible security deposit
Most secured credit cards require applicants to submit a security deposit equal to the credit limit desired. Capital One’s minimum security deposit with this card can be either $49, $99 or $200 — in any case you’ll be granted an initial credit limit of $200.
Note that you have to apply and be approved before your minimum deposit is determined, and you’re not guaranteed to get one of the lower deposits. Still, this is a unique feature that gives you the chance to pay less than $200 to secure a credit line.
Deposit is refundable
You can get your security deposit back if your balance is paid in full and you close your account. Plus, Capital One may also review your account for on-time payments and decide that you’re eligible to upgrade to an unsecured card and have your deposit refunded. However, be aware that there’s no set time frame for that review.
Chance for a credit line increase
Capital One will automatically review your account for a higher credit line in as little as six months. Since the minimum credit limit is only $200, a credit limit increase offers you more flexibility — and can help lower your credit utilization ratio, which increases your credit score.
Chance to upgrade to an unsecured card
If you use the Capital One Platinum Secured Credit Card responsibly, your card may be upgraded to the Capital One Platinum Credit Card. The terms and features will be the same as the secured version, except your credit limit will no longer be tied to a security deposit.
$0 annual fee
Another great reason to apply for the Capital One Platinum Secured Credit Card is that it doesn’t charge an annual fee. Credit cards for people with bad credit can charge expensive fees, like maintenance and annual fees. These can add up to $100 or more — which is high, especially for cards that don’t earn attractive rewards and sign-up bonuses. Plus, these cards typically require you to close the card when you’re done with it, which hurts your credit score.
Lower deposit not guaranteed
If you’re approved for the Capital One Platinum Secured Credit Card, the issuer will set your minimum deposit at $49, $99 or $200. That means you could have to deposit the full $200 to get the card.
Credit limit is low
With an initial $200 credit limit, you won’t be able to use this card for large purchases, though you do have the option of depositing more money to boost your credit line. But since you should keep your balance low for maximum credit score improvement, we recommend only using this card for small recurring purchases every month that you pay off in full by the due date.
High interest rate
This card has a 29.99% (Variable) APR. While that’s in line with many secured cards, it is still high. Make sure to pay your balance off in full each month so you don’t incur interest charges, and the APR shouldn’t be a problem.
No rewards rate
The Capital One Platinum Secured Credit Card doesn’t offer cash back rewards. And while most secured credit cards don’t, there are a few that do. For example, the Discover it® Secured Credit Card lets cardholders 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter. 1% unlimited cash back on all other purchases - automatically
Another secured credit card that offers cash back is the Capital One Quicksilver Secured Cash Rewards Credit Card, which earns 1.5% Cash Back on every purchase, every day; 5% Cash Back on hotels and rental cars booked through Capital One Travel (terms apply).
Discover also conducts monthly reviews of your account, starting at seven months to see if you’re eligible to transition to an unsecured card. However, the Discover it® Secured Credit Card does require a minimum deposit of $200 — so if you’re looking for the chance to qualify for a lower security deposit, the Capital One Platinum Secured Credit Card may offer the opportunity to do that.
If you use the card responsibly, you can eventually graduate to the unsecured version of the card, the Capital One Quicksilver Cash Rewards Credit Card, which has a $0 annual fee and also earns cash back.
Like the Capital One Platinum Secured Credit Card, you can receive credit line reviews every six months. However, the minimum security deposit is $200 — and there’s also an annual fee of $35, so you may have more upfront costs than you would with the Capital One Platinum Secured Credit Card.
Like the Capital One Platinum Secured Credit Card, the OpenSky® Secured Visa® Credit Card also lets you upgrade to its unsecured credit card. You can qualify for the OpenSky® Gold Visa® Unsecured Credit Card after six months of responsible credit card usage — and it too doesn’t require a credit check.
The OpenSky® Secured Visa® Credit Card‘s APR is 25.14% (variable), which is much lower than the Capital One Platinum Secured Credit Card‘s 29.99% (Variable) APR. So if you expect to carry a balance some months, then the OpenSky® Secured Visa® Credit Card may be a better choice to avoid more interest.
| Credit Cards | Our Ratings | Annual Fee | Welcome Offer | Rewards Rate | |
|---|---|---|---|---|---|
|
Capital One Platinum Secured Credit Card*
|
$0 | N/A | Non-rewards Card | ||
|
Discover it® Secured Credit Card*
|
$0 | Discover will match all the cash back you’ve earned at the end of your first year. | 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter. 1% unlimited cash back on all other purchases - automatically | ||
Capital One Quicksilver Secured Cash Rewards Credit Card*
|
$0 | N/A | 1.5% Cash Back on every purchase, every day; 5% Cash Back on hotels and rental cars booked through Capital One Travel (terms apply) | ||
OpenSky® Secured Visa® Credit Card*
|
$35 | N/A | Earn up to 10% cash back* on everyday purchases |
The Capital One Platinum Secured Credit Card is right for people who want to build their credit and are looking for a potentially lower security deposit than the typical $200. But if you don’t mind a $200 security deposit, the Discover it® Secured Credit Card might be a better card for you, since it allows you to earn cash back.
And if you’re concerned that something in your credit history might prevent you from being qualified for either of these secured cards, you might want to look at the OpenSky® Secured Visa® Credit Card. It’s also a secured card — but unlike the two previously mentioned cards, it doesn’t require a credit check when you apply (you will need to enter financial information, like your annual income and monthly housing payment.) However, the downside is that it has an annual fee of $35.
For Capital One products listed on this page, some of the benefits may be provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply
The information related to the Capital One Platinum Secured Credit Card, Discover it® Secured Credit Card, Capital One Quicksilver Secured Cash Rewards Credit Card, Capital One Platinum Credit Card, Capital One Quicksilver Cash Rewards Credit Card and OpenSky® Secured Visa® Credit Card has been collected by LendingTree and has not been reviewed or provided by the issuer of this card prior to publication. Terms apply.
The content above is not provided by any issuer. Any opinions expressed are those of LendingTree alone and have not been reviewed, approved, or otherwise endorsed by any issuer. The offers and/or promotions mentioned above may have changed, expired, or are no longer available. Check the issuer's website for more details.
