Related Article: The Best Secured Credit Cards (2015)
The following timeline documents my experience with the Capital One Secured Credit Card between 2011 and 2013. If you want to know why I chose this card, please read: “Repairing my Credit with a Secured Credit Card“. I decided to keep an online diary and record my progress so I could get feedback from people using this card, as well as to help others who are experiencing credit problems and are thinking about applying for a secured card.
I am not a credit expert and I do not work for Capital One. This is my personal experience dealing with Capital One and a description of how I used their secured card to improve my credit. If used responsibly, you should be able to establish or re-establish your credit with pretty much any secured card. The key is, ALWAYS pay on time and never go over your limit. Basically, you need to use your credit card responsibly and have a little bit of patience as building credit history takes time. I also recommend you look for cards that do not charge high monthly or annual fees. I have compiled a list of great secured credit cards to build or rebuild credit.
This is a long article, as I mentioned, it documents more than two years of activity with the Capital One Secured Credit Card. Feel free to read the whole thing or just jump to the end and read my final thoughts and overall review.
This topic has generated a large number of comments and questions, so I created a forum section to discuss more about this card and other related topics (like how to improve your scores, removing collections from your reports, other secured credit cards, getting approved for prime cards, etc.). A lot of people have joined and have posted their own timelines and experiences. I will be happy to answer any questions you might have over there. Anybody is welcome to join!.
My Experience with Capital One’s Secured Credit Card
Credit Score:
- Starting Credit Score: 568 (Experian)
- Last Credit Score: 711 (Equifax FICO)
Strategy:
- Always pay on time
- Keep credit card balance below 30%
- Take care of negative items on credit report
- Increase my credit limit
2011 Timeline:
- January 9: Applied online and got approved for the Capital One Secured Master Card. Sent my online deposit of $49 plus $150 to raise my credit line from $200 to $350 (please read the security deposit section below for more info).
- January 14: Received a confirmation letter in the mail from Capital One that my application was approved and that I should receive my new card in 7-10 business days.
- January 25: Received an email from Capital One with subject: “we’ve shipped your new card”. The email said: “Your new credit card was mailed yesterday, and you should receive it within 7 business days. Thanks for being a Capital One customer.”
- January 27: Received credit card with a $351 credit line (I was initially approved for a $200 credit line with a $49 deposit, but added $150 to increase it). Enrolled in online banking after completing card activation ($29 annual fee showed as a transaction on my account). Made first purchase without trouble.
- January 30: Called to enroll in CreditInform (owned by Capital One). Was told I should receive a package within 5 to 7 business days including my user and login information. It took less than 5 minutes and operator was friendly and efficient. (CreditInform is no longer offered with this card, they now offer a similar service called “Credit Tracker”
- February 14-17: Received the CreditInform handbook containing my credit report and credit score, as well as my login information to register online. Credit score shown is 619, which is already an improvement over the 568 I had seen on my last report a few months ago. Registered at www.mycreditinform.com (offered free of charge with Capital One’s secured credit card).
- March 4: Paid first statement balance in full. Online payment took 2 days to get posted on my account and it was easy to set up (purchases seem to take a few days to appear online).
- May 12: CreditInform update. My score dropped 10 points (from 619 to 609). Not great news, but I’m still positive that my next report will show an improvement. I think it’s too soon to see any major changes on it as I’ve only had the card for less than 4 months (please read July 29 post for an update on this).
- July 11: My credit score on my monthly report at CreditInform went from 609 in june to 639 in July.
- July 29 : Realized that credit scores provided by mycreditinform.com are what they call “FAKO” scores, which are not real credit score. Most creditors or lenders will look at a FICO score and not a FAKO. I’ve been comparing my Experian score, which is one of the “Big Three” major credit reporting agencies, with my CreditInform score for two months, and they differ substantially. While my credit score with CreditInform has been improving and it’s now a 639, my Experian credit score is 588, only 20 points more than my starting score almost six months ago (568). For this reason I’ll stick to posting scores provided by either Experian, Equifax or TransUnion.
- August 18: First credit line increase! Received an email from Capital One saying:
“Sometimes being a responsible customer pays off—like right now! We’ve increased your credit line by $100. This increase is unsecured and provided automatically, so you don’t need to send an additional deposit to cover it”
Not a big increase, but a confirmation that I’m heading in the right direction. My new credit line: $450.
- September 5: Added a forum section to this site so people can post their reviews and timelines. Everyone is welcome to join!
- September 9: Checked my Experian credit report. My score hasn’t improved in months (still in the 580’s) and I’m starting to realize that a single secured credit card with a $450 credit limit is not going to be enough to get me out of this hole. I need to take care of all the negative items on my credit reports if I want to see real improvement. Negative items include: 2 accounts in collections (unpaid medical bills), 1 “Paid Charge-Off” (case closed), 2 closed cards that were past due more than 60 days (1 credit, 1 store card). I’m currently in the process of removing the 2 collections. Will open a second secured card soon (considering Citi, Orchard Bank or Bank of America secured cards). I’m curious to see the impact these changes will have on my report in a couple of months.
- September 15-27: Made an additional $50 deposit to increase credit limit to $500. Deposit was posted on my account about 10-12 days later and I received a letter on the mail confirming my limit increase.
- November 2: Credit score went from 579 to 636 after paying off the two collection accounts on my credit report (a 57 point jump!). I had been stuck on the same score for months, so I’ve been working on cleaning up my report and it’s paying off.
- November 3: Opened a secured credit card with Bank of America with a 4k credit limit. I applied for this card at the bank not online. They offered me the BankAmericard Cash Rewards Secured Credit Card. I didn’t even know that a Secured Card with cash rewards existed. I’m hoping that a 2nd secured card with a larger limit will help boost my score and get things going a little faster.
- November 4: Not even 24 hours after opening the BOA secured card, it’s already showing on my report as “Current”. My score improved another 29 points for a total of 86 points in two days. My new Experian score is 665!
- January 18: I’m getting close to the 1 year mark with this card and received my 12th statement a few days ago. I’m still waiting for a second line increase but who knows if it will happen. I haven’t been using the Capital One card as much since I opened a cash rewards secured credit card with a larger limit.
- January 26: My Experian credit score increased by 11 points from 662 to 673 after a paid medical bill was removed from my report.
- February 15: Called Capital One after a year of having this account in good standing. I wanted to see if I qualified for a better card, a limit increase or an upgrade. An “account specialist” encouraged me to apply for an unsecured card with them but told me they could not increase my limit, upgrade or graduate my secured account. My only option was to apply for a new card and close the other one or leave it open if I wanted. I decided not to apply as I do not see the point of having two credit cards with the same bank, nor I want to close an account that’s already a year old as this will affect my credit.
- April 2: Emailed Capital One’s CEO and requested that my secured card be product changed to an unsecured card and my deposit refunded. About ten days later y received a letter stating this was not possible.
- April 19: Called to close my Capital One Secured card after having it for more than two years. This took about 5 minutes. The representative was helpful and didn’t try to convince me to keep the card or apply for a new one (which I thought was a good thing). He said my deposit will be refunded within two billing cycles, though I’ve heard it takes less than that. I’ll update as soon as I receive my refund. When I log in to my account online, I can see a message right below my account name saying “This account is currently closed”.
- April 26: Received my security deposit refund check today, just one week after closing my account. My account had a zero balance with no pending charges and I called one day before my statement cut, so I’m sure that helped.
- Final Status: This account is now closed. I had the Capital One Secured Card for more than two years. I always paid on time and never went over my credit limit. My credit line was increased once by $100 at around the 8 month mark but I did not receive any more credit line increases. After one year I called and asked for my account to be unsecured, but I was told I had to apply for a new card instead as they do not graduate accounts. After two years of having this card, I emailed a Capital One CEO and received basically the same response. Ten months after opening this secured account, I opened a 2nd secured card with Bank of America. At fourteen months I was approved for a car loan. Just before closing my Capital One account, I was approved for a Chase Freedom credit card. After opening the BOA card, my CapOne card didn’t get much use so I closed it in order to get my deposit back. My credit score improved more than 100 points since I started this whole process. Removing two delinquent accounts from my reports, getting a second secured card, paying on time, not going over my limit and letting my other credit accounts age, was key for improving my credit.
2012 Timeline:
2013 Timeline:
Overall Review:
- In one sentence: A great card to establish credit but once you have done this you will move on to better cards. Capital One is a great option for those looking to establish or rebuild credit. Capital One will most likely approve you even when other banks will not (however a few people have complained about being declined for this card). It is a good starter card, but will not grow with you over time. This means that it will never graduate to an unsecured card. You will also have to close your account in order to get your security deposit back. Credit increases are rare and not generous. Once you have established some history with Capital One, you can apply for an unsecured card with them or different bank. This is a great card to rebuild or establish credit history, but once you are able to bring your scores up, you will most likely close your account and apply for better cards. This card would be even better if Capital One offered graduation and returned security deposits to people that prove to be responsible and serious about handling credit.
Security Deposit:
- Initial Security Deposit: $200. I was initially approved for a $200 credit card with a security deposit of $49. I sent an extra $150 to get a $350 credit line. After 6 months with the card I was given a credit line increase of $100 for a total of $450. I later sent an extra $50 for a $500 CL. A few months before closing my card I brought my credit line up to $3k. This was really helpful as other banks matched this credit line when I was approved for other cards.
If you are going to apply for this card and are thinking about making a big deposit, you need to be aware of Capital One’s refund policy. This is what the Customer Agreement document that I received states:“I may not withdraw funds or request a refund of my funds at any time, other than by paying all of my obligations to Capital One and closing my account”
If you are in the market for a secured card that requires a small security deposit, then Capital One is a great option (you can’t beat $49, $99 or $200). If you are looking to put in a bigger deposit to get a higher credit line and would like to get your money back in a fixed number of months, then you should consider other secured cards. For example, Bank of America refunds your deposit after 12 months and Citi does it after 18 months.
Useful Links:
Thanks for the feedback Brandin…I’ll keep you posted on when I get it…it’s been 2 weeks since deposit so i guess i’m close.
@ Melvin it does not matter if your deposit was 49 or 99 dollars your credit limit will be $200
@ Melvin i made my deposit on march 30th and got my card on april 16th!!
I keep seeing this offer posted $49/200 ..I didn’t know that was an option..so you pay 49 bucks and they give you a 200.00 credit line? I guess I didn’t qualify for that…so if your min was 99 that’s all you get is 99.00 bucks I guess
Hey brandin
How long did it take from the time you made your deposit till you got your card ?
well got my card today and spent some on gas and im just gonna wait for my bill then pay it off right away!!
My fako scores from creditkarma.com says i got a 526 and the other fako score from creditsesame.com says my score is 595. my card has been mailed out and im ready to improve my score. i cant wait till it gets high enough so i can be pre qualified for a home loan!!
4/10 deposit cleared my acct
The clock has started on the receipt of card
Made my initial deposit on 4/5
Contacted capital one to verify receipt
I’ll keep you posted as to when I receive card
I only paid the minimum required as I was a bit nervous about this
How long does it take to post additional deposits to show on available balance?
Thanks…I was hoping it would be…They don’t accept debit cars
it’s accepted Melvin bc it’s just like a regular credit card.
I have been approved for the card and about to make my initial deposit.i got the card so I can use it for car rentals.most car rental companies don’t take debit cards.Does anyone know if this card is accepted at Avis,Hertz, etc…..
The two credit cards that I have Capital One Secured and HSBC unsecured are working great. Credit has gone up to 570 even with some negative things that recently posted to my credit. Just found out about those negative things and working to get those taken care of. Started with a 549 in February. Currently paying student loans and 2 credit cards. Looking forward to my score once some of these other accounts are paid off. I am pleased with the score considering all the negative that is still on my credit. I can see some progress.
Hello imisslost,
I understand your point. I also refuse to put more than $500 on my Capital One card knowing that I will not get my money back unless I close my account. I’ve had this card for more than a year now and I can’t wait forever to get a better card, that’s why I got another secured card with a higher limit.
There are other banks that offer interest on your security deposit, like Citibank. To me the BOFA secured card was a no brainer. I already bank with them and they offered me a cash rewards card. I have a family and can’t just have a $500 credit card forever. I need more leeway in case we go out on a trip, need to book a hotel, rent a car or have an emergency. I’ve had the card for 5 months and need to wait 4 months more to hopefully get my deposit back and have the card unsecure. I can’t say the same thing about Capital One. They will probably keep my money forever, will not raise my limit or waive the annual fee. It was a great card to start things again, but it does not grow with you. I’m not interested in applying for another card with them. I will just keep it until I can get a better card with another bank.
Your comment about “We’re doing THEM a favor” is definitely true if you are establishing credit. I understand what your are trying to say. However, I’m rebuilding and consider my case to be different. I use to have credit in the past and was completely irresponsible to a point were one of my cards was charged off. So I completely understand why banks don’t trust me anymore. I need to prove I’m responsible now. If you lend money to someone and that person never pays you back, would you lend them money again?
I think banks like Capital One take advantage of this situation and it pisses me off. People that prove to be responsible should be offered better deals. I have paid in time for about 15 months, never been over my limit and they will not offer me a slightly better card or a better credit limit. That’s why BOA was a no brainer for me. I like that ok, I’m on “probation” for a few months untill I prove that I can handle a credit card, then they’ll offer me a better deal. I can live with that. I find it fair.
I can’t wait to not think about this credit stuff anymore. I just want to get to a point where I can buy a house and be done with it 🙂
I appreciate the info presented in this post– updates and all. I’ve had my Capitol One Secured card for nearly a year. I deposited $500 and refuse to do more. I respect your plan, but I refuse to hand over thousands of dollars to BOFA without gaining any interest. And I have to pay a $39 annual fee to allow them the privilege. I’ll stick to Capitol One, but I’m mindful that these people are not really doing me a favor. We’re doing THEM a favor. I will patiently wait for unsecured opportunities to come up instead of tying my money up with too many secured cards.
thank you for benefit writed or speaked.
I have had a Capital One Secured card for over 15 months now. I have made my own deposits twice to get my credit line up to $1500. I have paid FAITHFULLY every month with the majority of the times paying off the balance 100%. I happened to check today to see when they did the review for periodic credit line increases. They told me every 6 months based on payment history and if account was in good standing. The guy said I had just had an increase in Nov. 2011. I said noo, I made an additional deposit in Nov but NOTHING from capital one. According to the rep the reason I had not been approved for a credit line increase was because in Oct 2011 I was TWO days late!!!! WTF??? TWO DAYS in 15 MONTHS???? AND paid the balance off 95% of the time EVERY month in 15 MONTHS!!!!! TWO days late is a reason no increase!!!! TWO!!!!!!! IN 15 MONTHS!!!!! Who does this???? There are a lot better cards out there that will give you a credit line increase WITHOUT having to “make an additional deposit” as he told me to get that credit line increase!!!!!! WOW I didn’t realize Capital One treated customers this poorly. TWO days late in 15 MONTHS!!!! And the balance paid in FULL almost EVERY single time!!!!!”
Applied and was approved with $49 fee. I applied on the 13th of Feb and the funds were withdrawn same day. I received disclosure information on 22nd of Feb and the email stating card shipped on 23rd of Feb. I received and activated my card on the 27th of Feb. Now, after reading everyone’s comments and posts, I received a credit limit of $300. I didn’t add additional deposits. Also, I also took the time to read the information packets that were sent with the card. It states, on page 15 of my paperwork, “We may, at our discretion, unsecure your account at any time and return the funds to you, i.e., security deposit. Ideas?
Received my card last month. After one month credit score went up 1 point. Checked Orchard Bank before the Capital One card showed on my credit report and they steered me to the secure card. I didn’t go that route, and used the Capital One card. Received email notification of my payment that was due…paid the full amount the same day (02/03). Used the card again and made another full payment (02/17). Found out that since the card is new they hold the funds for a week before letting you have your full amount back. Okay no problem since I didn’t want a high balance reported on my credit report. I will still have time to charge something for $30 on it before the closing cycle for this month. Received an email from Orchard Bank today with a credit card offer. Applied to see what card the would offer and in less than 1 minute was approved for an unsecured credit card. It still has high APR’s and an annual fee, but considering I haven’t fixed anything else on my credit yet I am taking it. I will continue to pay it off in full each month, and still plan on paying off two items on my credit before summer. So far things are going well.
Thank you for this information. Just what I needed to know.
I just applied for this card today, as I’m trying to re-establish my credit; however I was not instantly approved. A message populated, saying that I would receive a letter in the mail. I read on another post that this happened to someone else but they were still approved. So I really hope it works out for me. The timeline really motivates me. My husband and I are looking to own a home within another year or so, so I’m really excited. If I’m not approved, I will continue paying off debt. To piggy back from the timeline, paying off debt definitely helps your score. My score increased by 12 points in the same month, after paying off 3 small debts on my report. Best wishes to all
Two credit tricks that work. All though the bank will tell you they do not. The credit score says different.
PIGGY BACKING:
Get someone who has had a card for years with excellent payments and history. High unused balance on the card helps as well. Get them to put you on the account but send the card to the current cardholder instead of you.
All of the cards history shows up on your credit score. Humans can see this but computers have a hard time with it. Raises your score all most overnight. Banks will tell you it does not work, but it does.
CD LOAN FLIP
Get a 1000 or more, (you can use a cash advance or a payday loan) (payday loans paid back before three days are interest free, payday loans typically do not report to the credit bureau ) you only need it for a day. Put it in the bank in a cd. Then borrow the money back out using the cd as collateral. In Texas they can charge you only 2% difference in what the cd pays and then what the loan interest costs. At the end of a quarter either cash out the cd and pay the 2% to pay off the loan or roll it over by paying the 2% difference. When you do this the credit report reflects a high credit balance given and paid back. You can flip these. By that I mean you could do like I did and take the amount, in my case 10,000$ and put it in one bank in a cd, take it out in a loan, then take that 10k and put it in another bank in a cd, then take it out, etc. I did three banks in Dallas all in a row. Since it was all in one day the loans did not show up on my report that day. No questions were asked. So I flipped it three times, returned the money and then later cashed out the cds at the end of the quarter and paid off the loans.
ZIP CODE TRICK.
I went to a place in Dallas with the most desirable zip code. (highland park) I got a po box. I made this my office address. Instead of saying po box such and such I listed it at 58741 (then street name of the post office as second line) This gave me a desirable zip. I then subscribed to several high profile magazines like the DuPont registry etc. Got on lots of mailing lists and made a very nice computer profile with all the mailings the computer was looking for.
I never lied about my income but soon had around 75k in credit cards available to me. I applied for them using copies of all 3 credit reports I sent them asking them not to make a inquiry in my letter. I asked them to use the copies of the credit reports as the basis for their decision. Some inquired anyway. I got a bunch of cards.
I applied to all kinds of cards all at once so that I would limit inquiries. I asked the ones that had made the inquiries to take them off.
I applied on Jan 17 and was approved. Sent my deposit and received my email yesterday Jan 31 that my card had been shipped. Pulled my credit report and it is not showing yet but I’m sure it will be there soon.
capital secure card ,i wish i never got a card from them , they retricted my card so many times, dont get one
Received great feedback from everyone. Right now my credit is at a 552 (14 point drop from something negative recently posting to my credit). I am trying to buy a house next year so I know I have a lot of work to do. I received offers from Citi, Discover, and Capital One but didn’t take any of them because I knew my credit was bad. I applied for the Capital One secure card in November. Was approved in December(took longer because they needed address verification) $99/$200. I made my deposit in January and my card will be here this week.
I am looking into the other cards mentioned here just to have more positive items on my credit and try and build it faster. I know it will take more time to build my credit and that is fine I am in this for the long haul. Hopefully I will be able to get approved for an unsecured card with Capital One like some of you did shortly after showing good using and payment history. I am looking into Orchard Bank and Citi just to have another card to split my bills with. I don’t plan on using any of the low limits for purchases just to pay normal monthly bills to get things back going.
Thanks for the post…I will check back for updates and to give mine.
That definitely gives me hope TP!!
Hi all, just wanted to share my experience with Cap One. I applied for the secured card in September 2011, and put down the $49 for a $200 CL. I paid in full each month, then a couple weeks ago received a preapproval offer from Orchard Bank (a bank known to help rebuild credit via high APR rates!) for $300 which I applied and was approved. A few days later, an email from Capital One saying I would be able to check for any credit card offers without having to have a hard pull. I did it, and was approved for the No Hassles Rewards Card for $500. I am slowly but surely raising my credit score! So to answer many users questions, NO, CAP ONE DOES NOT CONVERT SECURED TO UNSECURED. You would just be eligible to apply for their unsecured cards. I’m pretty surprised, it only took 3 months.
The Capital One Secured Mastercard Credit Card is the best secured card on the market!
Best of all you only have to deposit $49 Down to get a $200 Credit Line. You have a 25 day grace period to pay the balance. Its a Great way to build credit, while having a credit line. I love the way you dont have to deposit the full a amount of credit they will give to you (unlike all the other secured cars).
Just Apply! Get Approved! Make your deposit, and next thing you know your card arrives.
Big thanks to Capital One for giving people a 1st and 2nd chance at building GREAT CREDIT!!!
How much is the monthly payment for this card minimum an full payment?
Hi everyone! I had a question regarding the credit score shown on CreditInform. I read on this blog that the score shown is a FAKO score however the score that it’s showing me is the same as the score on my Experian report. Aren’t the scores shown on experian our actual FICO score? Forgive me if this question has been asked before but I’m just curious.
I’ve had my cap one since feb an it’s really important to pay off balance equifax (601) slowly going up. I have paid off two old CO so will see what happens next month
I have the boa card and still waiting for Capitol one card am gonna increase the boa card limit with another deposit.. The question I have is do I have to use these cards to see any improvemoent on my credit score or can I just hold them and not use them or should I just use 30% of each balance monthly or every other month.?????
I recently contacted Capital One via chat and was told that it was not possible to graduate a secured card to an unsecured card. I don’t know if anyone else has inquired on this topic. I just find it strange that they wouldn’t offer the ability to graduate a secured card at all. I’ve only had the card for about 6 months and didn’t expect them to allow me to graduate so soon, but to not allow it at all. I was just wondering if anyone else has inquired to Capital One about eventually graduating to an unsecured card.
I got approved for the $49/200 Credit line offer and added made a deposit of $649 making my limit $800. i havent received the card yet way to early for that but i did call instead of doing it online and gave them a deposit that way. I saw it hit my account with 16 hours. i expect to get the card in 2 weeks. I also applied for the bank America secured card and got a approved for the plantnum plus card (worst one they off due to fees and high interest rate- trying to get them to switch me to the cash reward signature secured card has non of the above) i made a $1000 deposit my credit score is 595 so i figure i wouldnt qualify but i did no changes in credit score yet but got inquiry from capitol one with 36 hours of starting this thing. looking good so far my goal is a credit score of 695 by summer.
I went online and got approved called in tomorrow to give them my debit card for the $49 TO $200, CROSSING MY FINGERS ALL THIS STUFF IS TRUE AM VERY SKEPTICAL BUT WILL UPDATE AGAIN TO LET READERS KNOW.
Thank you so much for the info you have provided. I signed up about an hour ago and I was approved immediately. However, I called in to capital one instead of doing it online. If u call in it takes 7-10 days total from application to receiving your card. If you apply online it will approve u but will take 10 days to mail u a letter at which time u make your deposit 49,200, and then another 7 days to get your card. Calling in is the best, fastest, and most efficient as u can pay ur deposit with ur debit card. I will update my status once I get my card in 7-10 (business) days.
Newdirt.org,
Thank you for your feedback. Yes, it does really help. Just by reading majority of peoples’ positive comments about this card, I will give it a try and see how it goes. Again, thanks!
Hi Everyone. Just by reading peoples’ comments out there regarding this Capital One secured credit card, it makes me want to consider getting one. Just like everyone else, I also need to rebuild my credit scores but I just don’t know how or where to start. I am still indecisive because of my concerns and worries of this secured credit card. I know already that I’m approved for a credit line of $300 with $99 deposit at 22.94% APR… Well,my concern is the APR being so high, Is that good or bad? Will the APR change as time progress for the better? Like; paying off balance in timely matter. My worry is… Is it safe to give my out my personal account # so they can take withdrawal the security deposit money? Please, take a moment and read this. Every feedback I can get will surely help me. Thank You!!
**P.S How does the security deposit work? Is it really refundable?
Hi LInda. The APR on this card is high, but I wouldn’t worry too much about it. If you are going to use it to rebuild credit then you should try to pay in full most of the time so you don’t have to pay fees, and not spend more than 30% of your limit at any given time so it looks good on your credit report. The APR on this card does not get better with time, also the card will not graduate to an unsecure card in the future. If you handle your card responsibly Capital One might give you a line increase, but they’re usually not very generous ($100-300).
If APR is a deciding factor for you, consider Orchard Bank’s secured card with a 7.9% APR. However the Orchard card requires a $200 minimum deposit and the amount you deposit will be your credit line. So if you want a card with a $300 CL like the one Capital One is offering you, you need to put down $300. However I’ve heard some people saying Orchard Bank does unsecure and also gives your deposit back. Check this thread for more info: http://www.newdirt.org/forums/topic.php?id=48
Capital One’s deposit is only refundable if you close your account. You can read the “Security Deposit” part of the original article above for more details. Hope this helps.
I got a card in april and my credit score was a 520 now its a 623 and capital 1 gave me a $100 unsurced increase today my deposit was $200
I love this thread… very helpful! i just applied for my Capital one secured about maybe 45 mins ago and was approved… now to await the arrival of my credit information….
any ideas on what a deposit usually is???
and should i be paying more than the allotted ammount or????
Cece, there is no monthly fee for the secured card. There is only the $29 annual fee that is charged once each year. So you will not have any charges at all if your account balance is $0.00.
I wanted to know if you do not use your card will you still be charged a monthly fee?
I did the same thing with a capital one secured card, I paid more to make my limit 550$ my starting score was 630’s after a few months I received an email offer saying I was invited to apply for a cap one card so I did and got an unsecured card for 550$ the next day I got one from orchard bank and got that one unsecured too. My score had gone up to 660. My next card I got was from kohls they approved me at the store while I was shopping. Now Checking my score it has gone down to 647 due to new accounts I’m
Hopin it doesn’t take long to go back
Up again. I’m happy with capital one and credit inform so far. When my score was 660 I had my score pulled at a car dealer just to see and
It matched so I think they are pretty accurate. I haven’t been late on any payments and will
Post again when my score changes again
@KTbEar
Thats interesting. They gave you a credit line of 1000 with a deposit of 75. I guess its not a bad thing. However, you made a big mistake spending your full amount. Now your credit utilization ratio will be 100%. You should only use up to 30% of you credit limit, usually less. High utilization will definitely bring down your score.
I was wondering, I got approved for a capital one secured card, and I put down the $75.00 security deposit and got approved for 1000.00 right off of the bat, with no extra money put down.. is that a bad thing since everyone else is getting approved for $200-$300? I also have spent it all and paid it back before the date because I guess I was mistaken, I thought that would build my credit faster. I will now stop doing that. But I am just not understanding why my initial approval balance was so high?
Hi Torria,
Congrats on getting approved for the card! Yes, that means you can spend up to $200 per monthly statement period. There will be a penalty charge if you go over the credit limit. The Cap One secured card is my first credit card too. Feel free to come over to the Newdirt forums to read all about my and others’ experiences with the card, and ask any further questions.
I have never had a credit card. The rep told me that I need to make my $200.00 depsoit and the my credit line will be $200 and I get a $200 credit limit every month so does this mean I can purchase something for $200 every month if I wanted to. Thats just a example to go with the question I’m not going to spend like that. Thanks
I’m so happy I found your blog. I have been doing the exact same thing since February and this card definitely has helped my scores. At the end of January I had a 615/552/526. Currently my scores are a 627/593/585. I still have way to go to be able to purchase my home but this card definitely helps. I also applied for a Orchard Bank master Card yesterday. They approved me for an unsecured line of credit of $300. So I would say give them a try for a card. Capital One also increased my credit line by 100 last month. Only thing I have not tried is the Creditlnform, I think I will pass on it. Good luck with getting your score up!
@Sean:
It’s great to know you got approved for an unsecured card already, that’s awesome. I’m trying to clean up a few things on my report before I apply for another card. You just reminded me that I haven’t checked my Equifax or TransUnion scores in a while. Thanks for stopping by and please come back and let of us know of any updates. Also please consider joining the forums so we can share tips, etc.
Thanks for all the great information, I applied for a secured card and received mine yesterday. I also enrolled into the CreditInform program but will not receive my information for another week. Has the CreditInform Program been useful for any of you?
My card arrived today, 9/28! It took about 2 days for the card to arrive, since it was shipped on 9/26 according to my e-mail notification. I just activated my card and enrolled in Capital One online banking. I will make my first purchase to test out the card tomorrow. The annual fee charge did not show up in online banking yet, but I’m sure it’ll show up there soon.