The Capital One Platinum Secured credit card is competitive among cards explicitly designed to help people build credit. Its standout feature is the possibility for one of the lowest required security deposits on the market, and its credit-building potential is also something worth talking about.
Rates and fees: Potential for a fairly low security deposit
Many secured credit cards require a minimum upfront cost of at least $200. This security deposit usually acts as the card’s starting credit limit, and having one this low could greatly hamper your efforts at maintaining a low credit utilization ratio — the second largest influence on your overall score.
However, the Capital One Platinum Secured pulls away from the pack by offering cardholders a break on upfront costs. If you can’t afford a $200 security deposit, your credit score might qualify you for a minimum deposit as low as $49 (up to $200 maximum security deposit) — a notably more cost-effective alternative. Another plus: this $49 deposit could still get you a minimum credit limit of $200, so you still get a more substantial line of credit at a much lower cost.
Credit-building features: Strong incentives for responsible card use
This card offers several built-in incentives for using it responsibly, and the more responsible you are with your credit card, the better your credit score will be over time. If you are someone who needs more of a push to be consistent with practicing good credit habits, the Capital One Platinum Secured can help you out. After six months, Capital One will automatically evaluate your account to see if you qualify for an increased credit limit. Access to more credit could help keep your credit utilization ratio low and positively affect your credit score.
You also have the opportunity to earn your original deposit back as a statement credit as you continue to make regular, on-time payments. Not only can you boost your credit score this way thanks to creating a positive payment history — the largest influence on your FICO credit score — but you’d also effectively upgrade to an unsecured credit card and save a bit more money, too.