The Capital One Secured Credit Card is available for those people with a bad credit rating. Not only does it give them the convenience of not having to carry around lots of cash in their wallets, but it also helps them to re-build their credit record as well.
If your general credit record is not too bad, then you will only have to deposit an amount of about $50 to $100, in order to get a credit limit of $200. By depositing more cash into your card, you are able to raise your credit limit to as high as about $3000 if you want to.
However, should your credit history be really bad, then you will be required to deposit the same amount of money into your card, that you want your credit limit to be. In other words, if you want your credit limit to stand at $300, then you will have to first deposit the $300 into the card, before getting that amount of credit. In this case, it would be better for you to make use of a prepaid debit card.
At 22.9% interest rate, as well as a yearly membership charge of $29, these cards are expensive. However, most people with bad credit records don’t mind paying these high fees, since it gives them a chance to get their credit records back on track again.
Once your application has been approved, you will have to put a minimum amount of money into the card as a security deposit, which you can do online or over the phone. The security deposit you make is refundable, and can be made in one payment, or over a period of time.
Once your deposit has been processed, you will receive your card with $200, the minimum credit line. If you need your credit line increased at any stage, then it is a simple matter of depositing an amount that is more than your minimum security deposit. Your credit line will then be increased by the additional amount that you have just deposited.
While you are using your card, the three main credit bureaus in the country will get automatic reports on a regular basis, as to whether or not you are using your card in a responsible manner. It is important therefore, that you stick to the two stipulations attached to the Capital One Secured Credit Card, which are to pay your bills on time, and also to not use more than 30% of the credit that you have available on your card. Your credit rating will gradually improve if you adhere strictly to these two conditions over the ensuing months.
Having a bad credit rating makes life difficult in many ways, from employment opportunities, to making a loan for a car, or renting property. The benefits of having a Capital One Secured Credit Card far outweigh the fees payable to acquire one. You have the convenience of being able to pay for things with a credit card, as well as peace of mind knowing that your credit rating is slowly being improved.