Your credit is an important part of your financial situation. It follows you through your life and impacts so many aspects of what you do, from purchasing a car, a house, and in some cases, what type of job you can get. Building your credit safely and securely starts with making smart decisions. One way you can help build your credit safely is with a secured credit card. Chase is one credit card company that offers a secured credit card so you can build your credit, whether you are just starting out with little to no credit history.
About Capital One
Capital One is a very diverse financial institution that offers a wide array of financial services and products to consumers, from individuals to businesses and commercial patrons. Capital One is one of the most well-known names in the financial business, and one of the most trusted. They are a Fortune 500 company and although a lot of their business is offering credit through credit cards and other services, they do have branch locations in select states.
About Capital One credit cards
Living life strictly on cash is difficult. So many things in life require the use of a credit card, but if you are just starting out and trying to build your credit, or your credit score has taken a hit for one reason or another, it can be difficult to attain a credit card. Many creditors do not see you credit worthy or consider you a high risk for them to issue you a card. Today, there is another option to the traditional credit card that allows you to build your credit with no risk to credit card companies as well as it gives you more control over your credit.
Capital One offers a variety of credit cards with different limits, restrictions, APRs, perks and rewards. Depending on what your needs are, there is a credit card that fits your situation and your life. One card Capital One offers, has become a popular card over the years because it has the benefit of being easier to obtain if you have little to less than perfect credit. It is known as a secured credit card.
Difference between secured and unsecured credit
Secured credit is different from unsecured credit. What are the differences between the two?
Unsecured – With unsecured credit, a creditor is giving you a line of credit to use with the expectation that you will repay what you use on a monthly basis. You will usually have an interest charge attached to the payment for the use of the money they loaned you for your purchase. You may or may not have an annual fee attached to the card as well.
Secured – Secured credit helps you build credit but gives the creditor more security in knowing they will not be out any money, or as much money, should you default on making your payments, this is because with a secured credit card, it is required that you make a security deposit to the account before you are able to use the card. The amount of security deposit will vary depending on your creditworthiness, but typically ranges from $49 to $200. Once the security deposit is made, you are able to make charges on the card. Each creditor has different card usage terms and regulations attached with their secured credit card so you will want to know all the details about the card before you apply, to make sure it meets your needs and expectations.
About Capital One Secured Credit Card
Capital One’s terms and regulations are straight forward when it comes to their secured credit card. Once you are approved for the card, this is what Capital One will expect of you as part of the terms agreement and the benefits you can expect from a Capital One secured credit card:
- Security deposit
In order to use your credit card, Capital One will require you to make a security deposit. The amount will vary on your credit history and credit rating. The amount will either be $49, $99 or $200.
- Credit limit
Once you have made your deposit, no matter what the amount was, your credit line of $200 will be open to use. You may get an increase in your credit line after you have successfully made an on-time payment for five straight months without having to make an additional deposit. The amount of increase will also vary from person-to-person and their credit status.
- Easy access to your account info
You can always check on your account status by using one of the convenient connections to your account, 24 hours a day. Check on your account by phone, online or use the Capital One mobile app.
- Regular reporting to credit bureaus
Capital One regularly reports to the three major credit bureaus which can help boost your credit score. As you make your regular monthly payments on time, this goes on file with the credit bureaus and will help your credit score climb.
- Accepted worldwide
One of the best benefits of using a Capital One secured credit card is that you won’t have to worry about vendors not accepting it. Capital One is one of the most widely accepted cards of any. It is accepted at millions of locations and by millions of businesses worldwide which means using your card is hassle-free.
There is an annual percentage rate attached to the card which is set at 24.99%. This means that when you make a charge on your card, there will be a 24.99% interest charge attached to it. If you use your card for a cash advance, you will have an interest charge of 2.99% attached.
Building or rebuilding your credit doesn’t have to be painful or hard to do when you have the right creditor helping you along. Capital One is a highly trusted name in credit and they want to help you live the life you want by giving you a head start in building your credit safely and securely with as minimal risks to both you and them, as possible,