Capital One Platinum Secured Credit Card review: Build credit with no annual fee

CardName FEATURES

With no annual fee, a free credit tracking tool, Platinum Mastercard® benefits and Apple Pay capabilities, the CardName goes beyond the basics secured cards typically offer. Plus, its low minimum security deposit requirement make it an even more attractive option for individuals looking to build or rebuild their credit history with responsible use.

CardName best features:

• No annual fee
• Chip-enabled
• Receive an initial credit line of $200 after making a security deposit of $49, $99 or $200. Access to an authorized bank account is required to make your $49, $99 or $200 refundable security deposit.
• Regular reporting to all three major credit bureaus
• $0 fraud liability if your card is ever lost or stolen
• Select your own monthly payment due date
• Use with Apple Pay

WHAT OUR EDITORS LIKE MOST ABOUT THE CardName

The CardName has all the basics someone needs to build or rebuild their credit (with responsible use), with the addition of a few perks you don’t normally get with secured credit cards.

Pay a refundable security deposit of $49, $99 or $200 based on your credit history and receive an initial credit line of $200. You can pay more than your required security deposit before your account opens to increase your initial credit line up to a maximum of $1,000.

Financial education and responsible use are important when you’re building or rebuilding your credit. Capital One makes sure cardmembers have access to this information through its Financial Education site. The site features content about budgeting, balancing a checkbook and investing as well as additional resources that connect cardmembers to financial literacy programs (some of which are free). And if you want more tips about how to use credit wisely, follow Capital One's Twitter handle, @YourFutureEdge, to get more financial education.

The CardName, which reports to all three major credit bureaus, also helps cardmembers learn how to improve and build their credit through responsible use through CreditWise®. The tool, available to people even beyond Capital One cardholders, gives you unlimited access to your credit score and free financial tools to help you better manage your credit. One unique feature of the tracker is a Credit Simulator, which shows you how specific actions can affect your credit score. With these tools, Capital One is doing more than providing a platform for people to rebuild their credit, it's doing the proverbial "teaching a man (or woman) to fish."

One of our favorite features of the CardName is the option to select your own due date, making bill management just a little bit easier.

POTENTIAL DRAWBACKS OF THE CardName

The CardName doesn’t have a points program, so you won’t get any rewards. But since this card is more about utility than perks, use it wisely to build your credit and then graduate to a rewards card when your credit history allows.

The card also has a higher APR – RegAPR – than many of its competitors. If you’re concerned about interest charges, a secured card with a lower APR may work just as well for rebuilding your credit (with responsible use, of course).

CardName CARDHOLDER SCORES

HOW THE CardName COMPARES TO OTHER SECURED CREDIT CARDS

CardName vs. CardName

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Both cards report to all three major credit bureaus and both cards require a refundable security deposit. However, the CardName has a AnnualFees annual fee.

You can qualify for the CardName without a minimum credit score or a credit check. So, you can apply for this card without an inquiry showing up on your credit report, which can be helpful if you're trying to limit inquiries.

Because of the additional perks and no annual fee, the CardName may be the better pick.

CardName vs. Citi® Secured Mastercard®

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Neither the CardName nor the CardName has an annual fee (Citi is a CardRatings advertiser). Like Capital One, Citi® asks applicants to make a refundable security deposit that will be equal to their credit limit.

In the case of the Citi® Secured Mastercard®, that minimum security deposit is relatively high at $200; however, Citi also offers the possibility of a higher credit limit – up to $5,000.

The Citi card also offers free access to your FICO score so you can follow your score as you build your credit. You can also choose the payment due date that works best for your finances.

Because the features and fees for both cards are similar, choosing the best one between the two is a matter of whether you need to start out with a higher credit limit.

CardName vs. OpenSky Secured Visa

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The CardName is another secured card option that comes with an annual fee, in this case AnnualFees. Pay your security deposit and enjoy a credit limit of $200-$3,000 with the opportunity to raise that limit to $5,000 within the first year with responsible use and payment.

Once again, you're dealing with an annual fee, but if you foresee wanting a higher credit limit soon, this could be a better option for you. You can also open an OpenSky Secured Visa without a credit check or even a checking account, so this could be a great option for individuals starting from the ground up with their credit history.

IS THE CardName A GOOD SECURED CREDIT CARD?

This card might be a good card for anyone who is currently using a prepaid debit card or unsecured credit card because of a credit history in need of rebuilding. The CardName is also a reasonable option for college students and first-timers who need to establish credit, especially since it doesn't require an annual fee to carry.

Survey Methodology: CardRatings commissioned Op4G in September and October 2022 to conduct surveys among 1,554 cardholders nationwide. CardRatings website analytics from Jan. 1, 2022-Aug. 31, 2022 were used to determine a selection of the most popular cards and additional cards were included to add survey breadth. Responses to each of nine questions were given on a scale of 1-10 and respondents' scores were then averaged under broad topics. To determine the overall score, responses from questions 1-8 were summed and the answer to "How likely are you to recommend this card to a friend, coworker or family member?" was double weighted. "Current Scores" reflect scores from the most recent survey (2022); "Past Scores" reflect scores from the 2021 survey.

For Capital One products listed on this page, some of the above benefits are provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply.