Capital One® Platinum Secured Credit Card: Comprehensive Review
Build credit with Capital One's Secured Card. There are no annual fees, flexible credit lines, or security deposit returns.
Features
- Annual Percentage Rate (APR) for Purchases and Transfers: 29.99%, varying with the Prime Rate.
- APR for Cash Advances: Also at 29.99%, varies with the Prime Rate.
- Paying Interest: No interest on purchases if the balance is paid by the due date each month; interest accrues from the transaction date for cash advances.
Fees
- Annual Fee: None.
- Transaction Fees:
- Balance Transfer: 4% on balances transferred at promotional APRs.
- Cash Advance: Either $5 or 5% of the amount of each cash advance, whichever is greater.
- Penalty Fees:
- Late Payment: Up to $40.
Benefits
- No Annual Fee: Reduces cost for cardholders.
- Flexible Credit Line: The initial credit line is $200, which can increase to $1,000.
- Consideration for Higher Credit Line: A credit line increase could be made without an additional deposit after 6 months.
- Security Deposit: Refundable, starting at $49 based on creditworthiness.
Drawbacks
- High APR: A fixed rate of 29.99% can be costly if balances are carried over.
- Security Deposit Required: Though refundable, securing the credit line is necessary.
Product Summary
The Capital One® Platinum Secured Credit Card allows individuals with less-than-perfect credit to build or rebuild their credit history. With no annual fee and the potential for a higher credit line without an additional deposit after six months, it provides a viable tool for credit management under disciplined use. The card's high APR underscores the importance of paying balances in full each month to avoid significant interest charges.