Capital One Secured Credit Card With Fees And Service Charges Reviews

A secured credit card is one of the different types of credit cards that are commonly used in the US. The term secured is used because of a deposit given as security to avail the card. Capital One secured credit card is a much sought after credit card in the US and is well known for some of its services. Recently, Capital One has increased its annual fees but has reduced the initial payment you make as deposit.

How It Works

A Capital One secured credit card is a good choice for people who are known to have poor credit history or no credit history. It is often not possible for such people to possess a normal credit card. This is when secured credit cards can prove to be quite useful. As in the case of normal credit cards, the card holder must make regular payments for the purchases made with this card. However, when a payment is defaulted, the card issuer has the rights to recover the defaulted payment from the deposit. Although, this can be done, most card issuers do not resort to doing this and charge interest on late payments. Since the secured credit cards issued by Capital One report to the three major credit reporting agencies, this is a good opportunity for you to build a good credit history.

Fees and Service Charges

The fees and service charges associated with any secured credit card is usually more than a normal credit card issued by Capital One. Hence, using this secured credit card can at times be expensive when compared to that of a regular credit card. So, it is a good idea to carefully make an analysis if a secured credit card can actually be beneficial for you before you apply for one. This can help to avoid adding more expenses to your existing list. Read the fine print on the document associated with the Capital One secured credit card to check out the fees charge. It is worth noting that no secured card actually comes for free. All secured cards charge a fee that you must pay the card issuer on an annual basis. This can vary greatly from one card issuer to the other. The annual charges collected by Capital One are fairly nominal and is just about $29 every year and a late payment of $19.

Pros and Cons

Like with other secured credit cards, a Capital One secured credit card also has its own advantages and disadvantages. On a positive note, the security deposit required for obtaining this credit card is not very high. The minimum deposit required is $200. You get the added benefit of being able to enhance your credit line without making any additional deposit. Also, you do not have to pay any fees to get your balance transfers done. A major drawback of these cards is that the interest rates are very high.

While the Capital One secured credit card is not one of the cheapest cards available, it is also not very expensive either. You can also increase your credit limit to a maximum of $3,000 on these secured cards by increasing your deposit amount.

References: http://www.capitalone.com/