- Can help improve your FICO score
- Helpful, friendly customer service
- Transaction notifications help you keep tabs on usage and prevent fraud
Your initial credit limit is low, and some customers complain that it doesn’t increase much after long-term use. However, you may qualify to upgrade your secured card to an unsecured card after you establish a history of responsible spending habits and on-time payments.
How to get one: Visit Capital One’s official website to apply for a secured MasterCard. Nervous about getting approved? Check out Capital One’s prequalification tool to determine the chances of getting the card. If you have an open bankruptcy, make sure you wait until it’s discharged to apply. You also need a regular source of income, such as employment, alimony, or disability payments.
Who accepts it: You can use a secured Capital One card at approved locations around the world. It’s good for online and in-store purchases from merchants who accept MasterCard payments. You can even use it to rent cars and book hotels at numerous locations, which is great news for folks who’ve had issues reserving lodging or transportation with prepaid debit cards.
Features: We’ve seen some sketchy secured credit cards on the market that offer no real benefits, but Capital One actually treats its customers well. Secured cardholders receive many of the same benefits as Platinum MasterCard cardholders, including fraud protection, roadside assistance, and auto rental insurance. There’s also an impressive price protection feature that will reimburse you if you happen to find a product at a better price within 60 days of purchasing.
Fees: This is a prepaid credit card rather than a prepaid debit card, so you have to make a payment of $49, $99, or $200 in exchange for a $200 credit line. Capital One determines which amount you owe, but we’re happy to report that your payment is refundable if you ever pay off your card and close your account.
There’s no annual fee, which is impressive since other well-known secured credit cards charge one. NerdWallet agrees with us, declaring this Capital One card the “most affordable” secured credit card available.
Cash Advance APR24.99%
- Rated #6 in 6 Best Prepaid Cards