The Capital One Platinum Secured offers benefits created to help cardholders rebuild their credit.
As such, the card doesn’t offer any rewards or premium perks. Its benefits are focused on helping cardholders reach the goal of improved credit health.
The Capital One Platinum Secured offers plenty of ways to make rebuilding credit easier, from automatic credit limit increases to the lack of hidden fees charged by some other cards for bad credit.
Read on to learn about all the benefits the Capital One Secured card offers.
Capital One Platinum Secured benefits
The Capital One Platinum Secured card is a no-frills credit card for credit building. It doesn’t charge an annual fee, but you’ll need to put down a deposit as a collateral at the time of application.
Overall, the card provides simplicity many credit builders strive for. The card makes the process of working on your credit easier, thanks to its simple fee structure and handy benefits.
Low security deposit requirements
For many, the main issue with secured credit cards is the deposit requirement. It’s understandable – who wants to part with their cash before they even get the card?
The Capital One Platinum Secured, however, requires a comparatively low deposit. Depending on your creditworthiness, you may need to pay $49, $99 or $200 to get access to a $200 credit line.
If a $200 credit limit seems too low, you also have the option to put down a higher deposit which will become your credit line, up to $1,000.
The deposit is fully refundable. If you use the Capital One Platinum Secured responsibly and raise your credit, the issuer can upgrade you to an unsecured card and return your deposit.
Automatic credit limit increases
Raising your credit line is beneficial to your credit score since it can help you keep your credit utilization ratio low.
Capital One will review your credit line automatically after your first six months with the card. If you’ve been paying your credit card bills on time, the issuer will increase your credit limit.
This is a nice touch for a secured credit card. Other cards in this category may allow you to increase your credit limit by adding more money to your initial deposit. Capital One, on the other hand, doesn’t require any further investment and rewards you for positive credit habits.
Flexible due dates
To help you make sure you maintain those positive habits, Capital One also lets you choose the due date for your Capital One Secured Platinum.
This way, you can pick the date that works best for you and your monthly budget.
When you pick a credit card for bad credit, it’s crucial to take a close look at card terms and consider all the fees. You may find that besides annual fees, some cards come with multiple hidden charges, like application fees or monthly servicing fees.
Whatever shape your credit is in, you can find a card that’s transparent with its fee structure and won’t charge you obscure fees.
With the Capital One Platinum Secured, you won’t need to worry about such charges. The card comes with a $0 annual fee and charges no fees for balance transfers or returned payments.
The rest of the fees are rather standard and offer no surprises, like a $40 late payment fee and cash advance fees ($10 or 3%, whichever is greater).
Further, if you travel internationally, the Capital One Platinum Secured is good to have in your wallet. The card doesn’t have foreign transaction fees, so you can swipe your card anywhere outside of the U.S. without incurring any extra charges.
Maximizing the Capital One Platinum Secured card
Since the Capital One Platinum Secured doesn’t earn rewards and there are no premium perks to take advantage of, maximizing this card is only about using it to improve your credit.
Think of this card as a credit building tool. Its role is not to provide you with more flexibility in your budget or to earn you any value. It’s to allow you to develop healthy credit habits and let them positively impact your scores.
Here’s how you can do that:
- Always pay your bills on time. Your payment history is the most critical component of your credit. Late payments stay on your credit reports for seven years, so do your best to avoid them.
- Try to pay in full every month. This way, you’ll pay no interest, have better credit utilization and learn to budget without relying on your credit line.
- Keep the card open. As you see your credit grow, don’t close the Capital One Platinum Secured, as this will reduce the average age of your accounts. Instead, see if you can graduate to an unsecured credit card from the issuer.
- Stay patient. Rebuilding credit is a long-term commitment. Sometimes, getting to good credit may take longer than a year. Don’t despair if you don’t see results right away and stick with the plan.
The Capital One Platinum Secured might not seem like an exciting credit card, but it can be an excellent credit-building tool. Flexible and low on fees, this card is a good choice for those with bad credit.
With useful card benefits like a low security deposit requirement, automatic credit limit increases and flexible due dates, the task of raising your credit scores becomes a little easier. The key is to use the card responsibly and stay patient while your credit grows.