- Should you get the Capital
One secured credit card? You'll know by the end of this video. (bright music) Today I'm going to be talking about the Capital One secured credit card. I will be talking about the features, benefits, and drawbacks, and
by the end of this video, you'll have a complete understanding of whether the Capital One
secured card is right for you. Rebuilding credit? Then subscribe to CreditFast. I review different credit card offers that will take you from
bad credit to good credit. As you can see from cardholders, the Capital One secured credit card is a highly recommended secured credit card. To get this review started,
I put this chart together. This chart is important because
approval is not guaranteed, so I'm showing you here the
main reasons people get denied. If any of these things apply to you, don't apply for this card. If possible, I want you to
avoid a hard credit inquiry. So these are the things
that get you disqualified. There's no annual fee or
maintenance fees required with the Capital One secured card. You only need to put
down a security deposit. So how much is it? So for a $200 credit line, you either need to put
down $49, $99, or $200. That security deposit amount is determined based on your credit history. Then before your account
opens, you can deposit more to raise your credit limit up to $1,000. You could deposit an additional
$100 for a total deposit of 149 for a $300 line of credit, but I definitely wouldn't
do that for two reasons. The first reason I will get into, but the second reason I will
get into later in this video, and you definitely want to keep watching, because seriously, when you
find out the second reason, you might want to reconsider the Capital One secured card altogether. I told you that there were two reasons, and this is the first reason why you shouldn't put down
a larger security deposit when you are applying for
the Capital One secured card, and that is that after five months, if you pay all your bills on time, they're going to give you an
automatic credit line increase. It is almost 100% guaranteed you will get a credit line increase if your credit history is 100% on time, so there is no need to
put an additional deposit to raise your credit limit. And an argument can be made that it would help raise
your credit utilization by having a larger line of credit, and you could then use 20%
or less of your credit limit in order to build your
credit faster and higher, but I think it's just I
would rather save money and just go with what
they're requiring of me, and then, again, I
would only use about 20% or less of my credit line. They are fairly generous with
their credit line increases, so I would just leave it at that, pay on time for five months, and wait for that credit line increase. So who is this secured
credit card good for? Well, it is good for people
rebuilding their credit as long as they're not
going through a bankruptcy, and it's also good for people that have no established credit, so people that are 18
years, or just, in general, people that have never
had a credit card before. So have you applied for the
secured Capital One Mastercard? Did you get approved? Did you get denied? What was your security deposit? Was it $49, $99, or $200? This will help the viewers get an idea of whether they should apply. You must trust me when I say this: If you're interested in applying for the Capital One secured credit card, you need to watch this entire video. There is some misinformation
being circulated on the internet, online,
and on YouTube videos, even on some of the top blog sites. I wanted to clear that
up all in this video. I contacted Capital One directly to get a full understanding
of this for myself. I also will be reporting on something that will be changing soon that will help cardholders
get an unsecured offer. So stay tuned to get accurate information and where you would stand if you become a Capital
One secured cardholder. So the secured Mastercard from Capital One does not earn rewards. If you're interested in earning rewards with a secured credit card, then the Discover it Secured
card would be right for you. You're in luck, I just did a video on it reviewing the benefits and drawbacks of the Discover it Secured credit card, and that way you can compare
between these two offers to find the one that's right for you, and that's the point of my channel, to find you the best credit card offers, the cheapest and easiest way. Speaking of a cheapest way, I also did another video
on how to get approved for credit cards without a hard inquiry, and a lot of those offers
either had very low fees or they had completely no fees for people that have really bad credit, so if you fall into that category, definitely check that video out too. And I have put the link
to those two videos in the description below this video, and you can check it out. Like this video so far? Smash that like button. It'll help more people
rebuilding their credit find it. If you are rebuilding your credit, Capital One offers this very helpful app to help you manage your
personal finances better. You also are able to
sign up for CreditWise, and that is free credit
monitoring service, but the good thing also with CreditWise is you don't need to be a
Capital One cardholder in order to sign up. Now I'm gonna talk about two
cons with this credit card, the first being is that you
have to have a bank account, so if you don't have a savings account or a checking account, you cannot get approved for a
secured Capital One account. The second thing is the interest rate is
very high on this card, so you're going to need to
pay your balances in full to avoid the interest, so keep that in mind. Also, I did an article
that talks about more cons along with pros of having
the Capital One secured card. You should definitely check out if you want the bigger
picture of all the features and all the benefits of the
Capital One secured credit card. A benefit that might interest you is that there is no foreign transaction fees with any Capital One
credit card that you have. Usually a foreign transaction fee is 3%. Also a quick important travel tip: Before you leave the
country, if you're not sure, check out all the credit
cards that you have. Find out the ones that have and don't have foreign transaction fees. You'll thank me later when you look at your credit card bill. So this is the part of the video where I tell you about
the current situation with the Capital One secured credit card, because there is some information that is floating around the
internet that is incorrect. So this is the second
reason why I'm telling you not to add any more money
to your security deposit, because this becomes
very uncomfortable later because in order to get
your security deposit back, you have to completely
cancel your account. There is no possible way to
graduate it to unsecured. So if you want a Capital One
credit card that earns rewards, you're going to have to reapply. So this part of the video is what's new, and this is insider information because this is something
they're just about to start. They haven't started it yet, and you're not gonna find
this information on any blog. Well, maybe you'll find
it on creditfast.com, but other than that, you're not gonna find it
on any blog right now, and you're not gonna
find it in a review video on the Capital One secured card, and that information is, I talked to somebody at customer service and they explained exactly how it works when you cancel your card, get
your security deposit back, try to apply for an unsecured
credit card from Capital One. Okay, so just between us, this is what's happening with Capital One. They are changing the way people can apply for an unsecured offer after they've had the
Capital One secured card, and this is how it goes. So this is how it works
right now currently. If you decide to apply for an
unsecured Capital One offer, whatever it is, when you apply for it, they're not going to be aware of your past credit history with them. All that they will be aware
of is your credit report and what your score is and
certain factors with that. So the new way it's going to work is that when you apply for an
unsecured credit card offer, they are going to be completely aware that you've had a secured
account with them before, and that's going to factor in to whether you get approved or not. So this new way is going
to strengthen your chances of getting approved for an
unsecured Capital One card. So is this card right for you? Is it right for most people? You know what? It's better than the majority of all the secured credit cards out there, and I'd probably take a look at the Discover it Secured card. Look, you made it to the end,
so hit that subscribe button so you can watch more
videos just like this one to help you build your credit faster. Until next time.
