Is the Capital One Platinum Secured Credit Card worth it?
With an initial credit line secured by a flexible minimum security deposit and potential approval for those with bad credit, the Capital One Platinum Secured card is a worthy option for those looking to build credit.
Even though this card has a high variable APR and no rewards structure, it does give you the opportunity to improve your credit so you can potentially upgrade to a card with more benefits in the future.
Learn more about the Capital One Platinum Secured Card
Capital One Platinum Secured Credit Card benefits
This secured credit card comes with a variety of cardholder benefits that are worth considering.
Automatic credit line reviews
For many people, the purpose of a secured credit card is to build credit for better access to financial opportunities in the future. When you use your Capital One Platinum Secured card responsibly, you may be automatically reviewed for a credit line increase in just six months.
Flexible security deposit
The minimum deposit to secure your initial $200 credit limit on this card is $49, $99 or $200. The lender provides your specific deposit requirements during the preapproval process, so you know how much you’ll need to get started.
Your exact initial deposit requirement depends on factors including your credit, income and existing debt. However, in many cases, you can deposit more to secure a credit limit of up to $1,000.
Flexible due dates
You can choose where in the month you want your statement due date to fall. This helps you budget for payments and mitigate the risks of making late payments.
For example, say you pay rent on the first of every month and you get paid twice a month. The check you get toward the end of the month may be tied up in covering your rent and living expenses, like groceries. It would make sense to choose a mid-month pay date for your credit card statement in this case. That way, the paycheck you get toward the beginning or middle of the month can be used, in part, to make your credit card payment.
Autopay
You can set up autopay to draft statement payments directly from your bank account, ensuring you make every payment on time. This can reduce the chance that you forget about this new bill in your budget. Remember, the only way you can build a positive credit history with a secured credit card is by making your payments on time. Otherwise, you risk adding more negative items to your credit report.
Monthly recurring transactions
You can get easy access to a list of vendors that charge your card every month, making it easy to manage subscriptions and bills on your card. This feature lets you see where your money is going so you can budget better and cancel subscriptions that you might not be using anymore.
$0 fraud liability
If you’re working hard to keep your balance low and manage your card responsibly, you certainly don’t want someone else messing that up for you. With Capital One, you get $0 fraud liability protection. This means you’re not liable for fraudulent or unauthorized charges on your card if it or your credit card number is stolen.
Emergency card replacement
If you find your card has gone missing, you can report it lost or stolen. Your lender will work with you to provide an emergency card replacement, even if you are traveling and need the card to arrive wherever you are.
Credit monitoring and security alerts
As a Capital One cardholder, you get access to CreditWise. This program lets you see information about your credit reports for free from Experian and TransUnion. You can also set up email or mobile app alerts so you know when information on those credit reports changes.
Keeping a close eye on your credit reports helps you report potential fraud as soon as possible to minimize an impact on your credit. It also helps you understand how your own actions impact your credit score, so you can make more positive choices in managing your debts.
Capital One also provides security alert options via email, phone or text. These alerts notify you if Capital One’s algorithms detect seemingly suspicious activity on your card. For example, say you live in Roanoke, VA, and most of your charges are made there. If a charge all of a sudden shows up in Dallas, TX, that’s likely to trigger a security alert.
Option to convert to a regular credit card
The Capital One Platinum Secured card offers several ways to grow your credit. You may be able to get an increased credit line on the card with future deposits. However, if you continue to make payments on time and otherwise manage your card responsibly, you could qualify for an upgrade to a Platinum card with no security deposit. In this case, you might consider closing your secured card and getting your deposit back.
Capital One Platinum Secured Credit Card rewards
There is no rewards program, such as cash-back rewards that you can use as a statement credit, with this card. That’s par for the course with a secured credit card, however. There are only a few secured credit cards on the market that come with a rewards structure at all.
Capital One Platinum Secured Credit Card fees, rates & limit
One of the differentiators to consider when shopping for a secured credit card is the cost of account ownership. You should always compare the fees and interest rates of cards you are considering to figure out which might be the best credit card for you.
Capital One Secured credit card fees
This Capital One Secured card doesn’t come with an annual fee, a fact that makes this a competitive product. Many secured cards do come with annual feels.
Cash advance fees on this card are 5% of the withdrawal amount or $5, whichever is more.
You’ll also pay 4% of the total balance transfer amount if you can and choose to transfer other credit card balances to this card via a promotional APR. If you’re not offered a promotional balance transfer APR, any transfers that occur at the regular APR don’t come with a fee.
If you’re late with a payment, you may pay a fee up to $40. You won’t pay any foreign transaction fees, however, if you shop outside of the United States with this card.
Capital One Secured credit card interest rates
The interest rates for the Capital One Secured card are:
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Regular APR: 29.99% variable APR
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Cash advance APR: 29.99% variable APR
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Balance transfer APR: 29.99% variable APR
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Initial purchase or transfer promotional APR: Not available or may be offered on a case-by-case basis during the approval process
Always ensure you read the fine print of your credit card offer to understand the exact APR offered to you and any special promotional offers you may qualify for. Promotional APR is not common with secured credit cards, but it’s important to understand the terms of your account.
Capital One Secured credit card limit
Your credit limit is secured in part by the deposit you make on this card. While the minimum credit limit starts at $200, you may be able to secure up to $1,000. If you can’t get a larger secured credit limit when you apply, you may be automatically considered for a credit line increase within six months if you manage your card well.
How the Capital One Platinum Secured card compares
If you look at secured credit card review information, this Capital One card stacks up fairly well against competitors such as the OpenSky secured credit card.
Some winning points for the Capital One Platinum Secured credit card when compared to other options on the market include:
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No annual fee. Many other cards of this nature have annual fees ranging from $35 to $99, which means you pay a premium for the opportunity to build credit with the card.
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Flexible security deposit. Most other cards require you to deposit an amount equal to the credit limit. The Capital One Platinum Secured card may allow you to deposit $49 or $99 to secure a $200 credit line, depending on factors relevant to your application.
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Capital One offers a path to an unsecured card. Managing your account well opens the door to getting your security deposit back and upgrading your card, which isn’t always possible with other secured credit card lenders.
That being said, the Capital One Platinum Secured credit card doesn’t shine brightest in a few areas.
The 29.99% variable APR is fairly high, and there are several cards on the market that beat it. Those do tend to come with annual fees, though, so you must consider whether you’ll save enough in interest over the year to make the fee worth it.
This Capital One card also isn’t a rewards credit card. That’s not a huge negative point against it, as many secured cards don’t come with a rewards structure. However, you can find a few that do, and if they don’t come with large annual fees and you can qualify for them, they might make better additions to your wallet.
Is the Capital One Platinum Secured credit card right for me?
The Capital One Platinum Secured credit card may be the right choice for you if you want to improve your credit history but are struggling to get approved for any credit cards. This card doesn’t require good credit — or any credit, for that matter — making it a potential option for those who are new to credit cards.
However, the APR is fairly high, so if you carry over balances from statement cycle to statement cycle, you could end up with a lot of interest expense. This card is a better choice for someone who plans to use it only to buy things they already have planned to purchase — such as groceries — and pay the balance off every month.
If you want a Capital One card but don’t think this is the right fit, check out our other card reviews to see if one of these might suit you better.
How do I get the Capital One Platinum Secured Credit Card?
You can learn more about the Capital One Platinum Secured Credit Card and apply online.
A credit check is required, but approval doesn’t depend solely on your credit score. You can get approved for this card with poor or bad credit.
You will also need a bank account to set up the security deposit and enough funds for the required security deposit. Capital One will let you know whether you qualify for the $49, $99 or $200 minimum security deposit amount after preapproval. You may also be able to choose to make a higher deposit amount for a higher credit limit.
