Capital One Platinum Secured Credit Card review 2024 (2024)

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The Capital One Platinum Secured Credit Card is designed to help you rebuild credit without the burden of an annual fee. By providing a refundable security deposit, you can access a credit line and start building a positive payment history, which is crucial for improving your credit score. Though it doesn’t come with many frills, it’s still one of the best secured cards out there.

This review will explore the features, benefits, and potential drawbacks of the Capital One Platinum Secured Card, helping you determine if it's the right tool for rebuilding your credit.

How the Capital One Platinum Secured card works

The Capital One Platinum Secured card is for those looking to build or rebuild credit. A security deposit is required to establish your credit line.

The minimum security deposit is $49, $99, or $200, depending on your creditworthiness. Your initial credit line will be equal to the amount of your security deposit. For example, if you deposit $200, you'll receive a $200 credit line.

To qualify for the Capital One Platinum Secured card, you must undergo a credit check and fund the security deposit. Capital One will determine your minimum security deposit based on your application. But you can deposit more to increase your initial credit line to $1,000.

One of the standout features of this card is the opportunity for a credit line increase. After making your first six monthly payments on time, Capital One will automatically consider you for a higher credit line without requiring an additional deposit. This feature rewards you for maintaining a positive payment history.

Benefits of the Capital One Platinum Secured Card

The Capital One Platinum Secured card is meant to help you build credit, and the benefits are made to match.

Ideally, you would use this secured card for a short time and then upgrade to an unsecured card with better rates and rewards. In the meantime, here’s what you can expect regarding benefits.

Low deposit

One unique aspect of the Capital One Platinum Secured Credit Card is that it allows some borrowers to make a lower deposit.

Most cards require a deposit equal to the credit line amount. But Capital One examines your credit and could approve a $49 or $99 deposit for a $200 credit limit. This deposit is fully refundable if you make your minimum monthly payment on time each month.

No annual fee

One advantage of the Capital One Platinum Secured Credit Card is that it doesn't charge an annual fee. This is important for those rebuilding their credit, as it allows you to focus on making timely payments without the added cost of a yearly fee.

Compared to other secured cards that may charge annual fees, the Capital One Platinum Secured Credit Card can save you money while you work on improving your credit.

Reporting to all three major credit bureaus

Capital One reports your payment history and amount to Equifax, Experian, and TransUnion. This helps improve your credit score, as timely payments are a significant factor in determining your creditworthiness.

By making on-time payments and keeping your balance low, you can show responsible credit behavior and improve your credit profile.

CreditWise® from Capital One

With this card, you can access CreditWise®, a free credit monitoring tool. CreditWise allows you to check your credit score, monitor your credit report, and receive personalized recommendations for improving your credit health.

You can also try the CreditWise simulator, which shows you how your score would change based on positive credit changes, such as paying off a card or increasing your limit.

This feature is valuable for those actively rebuilding their credit, as it provides insight into the factors affecting your credit score and offers actionable advice for making progress.

Flexible due dates

The Capital One Platinum Secured card allows you to choose a due date that works for you. You can also request to change your due date at any time. It will change to the new date within two billing cycles.

No foreign transaction fees

It’s rare to find a secured card with no foreign transaction fees, let alone one with no annual fee. But Capital One doesn’t charge a foreign transaction fee on any of its cards. While it’s not one of the main reasons to get the card, it can help you keep more money in your pocket if you travel abroad.

Potential drawbacks of the Capital One Platinum Secured Card

While the Capital One Platinum Secured card offers several benefits for credit-building, there are a few potential drawbacks to consider.

• High variable APR: The card comes with a high variable APR of 29.99%, which can result in significant interest charges if you carry a balance. To avoid accruing interest and getting stuck in a cycle of debt, it's essential to pay your balance in full each month and use the card responsibly.
• No rewards program: Unlike other secured cards, the Capital One Platinum Secured Credit Card doesn't offer rewards. You won't earn cash back, points, or miles on purchases. While rewards can be a nice perk, the primary focus of a secured card should be building credit.
• Security deposit requirements: To open this card, you must provide a refundable security deposit starting at $49, $99, or $200, depending on your creditworthiness. You'll also need a bank account to fund the deposit. While the deposit is refundable, it may be a barrier for those already facing financial challenges.

Is the Capital One Platinum Secured Card right for you?

The Capital One Platinum Secured card is a beginner credit card that works best for borrowers ready to build or rebuild credit. It’s one of the best secured cards because you can build credit without paying an annual fee.

This card may be right for you if you:

• Have a limited or poor credit history
• Are looking for a secured card with the ability to upgrade to an unsecured card
• Want a secured card with a low security deposit
• Can pay the balance off in full each month
• Don’t need a balance transfer card

When considering the Capital One Platinum Secured Card, it's important to evaluate your financial situation and goals. If you can provide a security deposit and are confident in your ability to make timely payments each month, this card can help you build a strong credit foundation.

However, if you're concerned about the high APR or the lack of rewards, you may want to explore alternative secured credit cards that better align with your needs.

Alternatives to the Capital One Platinum Secured card

If you’re looking at secured cards, you may also want to consider these cards.

How we rated this card

Every credit card review we publish has undergone a rigorous editorial process to ensure accuracy and objectivity.

We rate all credit cards on a 10-point system, with 10 being the highest possible score and 1 being the lowest possible score. We assess each card across several key factors, weighted based on what our research shows matters most to readers like you. Learn more about our methodology here.

Here are some of the factors that influenced this card’s overall score:

• Approval odds: The Capital One Platinum Secured Card excels in its accessibility for those with no credit or less-than-perfect credit. The pre-approval tool and the secured nature of the card contribute to higher approval odds.
• Fees: The card's fee structure is generally favorable, with no annual or foreign transaction fees.
• Credit-building features: The Capital One Platinum Secured Card offers robust credit-building features, including reporting to all three major credit bureaus, automatic consideration for credit line increases, and the potential to upgrade to an unsecured card.
• Credit limit: The card's credit limit structure is unique, with an initial credit line of $200 and the ability to increase it up to $1,000 by making a larger security deposit. This can be fairly low for some users.
• APR: The high variable APR of 29.99% is a significant drawback, especially for those who occasionally need to carry a balance.
• Added perks: The Capital One Secured Card lacks a rewards program and offers limited additional perks, which may be less appealing to some users.

The bottom line

The Capital One Platinum Secured card is a solid choice for those looking to rebuild their credit without the burden of an annual fee. With this card, establish a positive payment history and improve your credit score.
The card's automatic consideration for a credit line increase after six on-time payments and the free credit monitoring through CreditWise® make it a solid credit-builder card.

If you're looking for a straightforward, secured credit card with no annual fee, the Capital One Platinum Secured card is definitely worth considering. Consistently using this card can strengthen your credit score and unlock new opportunities as your credit improves.

Editorial disclosure: Opinions expressed are author's alone, not those of any bank, credit card issuer, or other entity. This content has not been reviewed, approved, or otherwise endorsed by any of the entities included in the post.