Everyone knows that deposit is needed to open secured credit card. In past, people are used to lend their money to their friends with collateral in order to reduce any risk. Collateral can be a land or property. Nowadays, money is used as collateral as well. Money can be a deposit or down payment to reduce lending transaction’s risk like one applied by Capital One secured credit card deposit.
Capital One, just like the other financial institutions, requires the applicants to give them refundable deposit if they really want to get Capital One secured credit card. Usually, the deposit given by applicants to financial institutions in order to get secured credit card will be the credit line size. About minimum deposit for applicants to get secured credit card, it is different depending on each financial institution and the credit risk.
There will be requirements that applicant must fulfill before setting up Capital One secured credit card deposit. Capital One is different from the other issuers of credit card. First is annual fee that’s lower than annual fee of credit cards issued by other financial institutions. Some qualified applicants who set up $49 deposit will get credit card with $200 for credit line. Qualified applicants who have less credit risk can set up $99 deposit.
The other qualified applicants who have credit risk that’s more significant than previous applicants mentioned above must prepare more deposit. Capital One requires those applicants to set up $200 for deposit to get credit line with the same amount. However, not the entire applicants will be accepted by Capital One. Few factors like no savings account, no checking account, and bankruptcy recorded on credit report may lead to declination.
How to Be Accepted By Capital One to Get Secured Credit Card
One main reason many applicants are rejected for Capital One secured credit card deposit is their income. Any applicant who wants to apply for secured credit card from Capital One needs to have monthly income which is $425 higher than their mortgage payment or their rent. Applicants who already have relationship with the Capital One must have good reputation with their accounts.
Capital One applicants who already have Capital One account and Capital One credit card cannot apply for a secured credit card also from Capital One. Those who are finally accepted for secured credit card from Capital One are then allowed to add deposit after eighty days. When applicant is accepted he will not get secured credit card directly. Until eighty days after accepted, deposit can be added as long as the card isn’t activated yet.
Once Capital One secured credit card deposit is activated, no applicant can add more deposit, means credit limit cannot be increased anymore. The maximum limit for deposit on secured credit card from Capital One is $1,000. Applicants can set up the deposit online through the account on Capital One. The company requires applicants to transfer the deposit from bank account. Capital One will not accept deposit that’s paid through checks or cash.