Capital One’s Secured MasterCard is a perfect option for people who need to create, re-establish, or reinforce their credit history. This guaranteed approval secured credit card is offered to cardholders who have experienced credit problems in the past. Applicants, who have been given approval, may simply provide security funds as collateral to get the minimum credit limit which usually starts at $200. Your security deposit is fully refundable if you decide to close your account. The Guaranteed Secured MasterCard furnishes credit bureaus with reports to credit so that your monthly payment history can help solidify your credit history. The essential thing is to pay the minimum balance due on time for each month. In other words, it is an opportunity with negative or limited credit to enhance credit scores and have access to a credit card at the same time.
Positive Aspects of the Secured MasterCard
There are many advantages offered by the Secured MasterCard. For one, prospective cardholders do not need to pay any application fees to avail of this card. So, basically, you can apply without having to make any payments. On the other hand, some other credit card companies charge consumers a certain application fee.
Another good thing about this card is that your payment information will be forwarded to the three credit bureaus in the United States. These are Equifax, Experian and Trans Union. As such, you can expect your credit score to improve gradually for as long as you make payments promptly and you do not go over your credit limit. Once you have achieved a positive record, you can then re-apply for standard unsecured cards that normally come with a higher credit limit and rewards program.
It is possible to obtain a maximum of $3,000 credit limit with the Secured MasterCard. The amount of credit given to you by the provider will depend on your security deposit. The least amount of refundable deposit is $49, $99 or $200. This depends on your credit rating plus the application information that is sent to the credit card company.
The security deposit can be made in one lump sum or in installments as long as it does not exceed 80 days after approval. It can even be done through online or phone banking procedures. You will get your card shortly after making the deposit. Increase in limits will depend on the additional deposits.
Rebuilding Your Credit
The Guaranteed Secured Rewards MasterCard from Capital One allows you to gain rewards in the form of miles while rebuilding your credit. You can earn one mile for every $1 in purchases you make on your card. These miles never expire and can easily be redeemed for travel, gift cards, cash, or merchandise. If you choose to redeem your miles for travel, you get to choose the airline and when to fly with no blackout dates or seat restrictions.
Secured credit cards were introduced to help consumers who wanted to start building their credit record. If you want to build your credit from scratch or you want to re-establish your credit, it is important to check out all the secured credit cards in the market. You can find various reviews and ratings for comparison of terms, features and benefits.