There are many companies as credit card issuers and one of them is Capital One. As similar to its competitors, credit card still gives attractive offers for customers. Several offers related to this service to fulfil what you need and want. From this company, you can get Secured Capital One Credit Card to establish and rebuild credit.
People only recognize traditional credit card as solution to build credit and spend money. In fact, there are two types of credit cards, which are unsecured and secured one. Traditional credit card is what you know as unsecured one because there is no collateral. On contrary, secured credit card means there is collateral from card owner that bank holds.
How does Secured Capital One Credit Card work?
Before obtaining Secured Capital One Credit Card, you need to know how this thing works. For collateral, you need to open account and put money as safety deposit. It is different from unsecured card where there is no deposit at all. Capital One offers deposit with minimum $200 and you can increase it.
Well, deposit is safety measure on Secured Capital One Credit Card. Unsecured or traditional credit card is loan with high risk. It is not mortgage where you use home as collateral. You apply for credit card and bank will assess and approve. After the contract is signed, you have the right to spend money and obligation to fulfil payment. Common issue is credit default that happens when people do not pay.
If you have bad credit history, your score is low. This is not good because it can affect eligibility to apply the next credit. This is where Secured Capital One Credit Card becomes the right solution. You can establish credit from beginning using secured credit card or rebuild it from bad to good credit score. Secured credit card from Capital One does not harm credit history, but work oppositely.
Benefits of Secured Capital One Credit Card
As credit card, Secured Capital One Credit Card has similar benefits and feature that you get from its counterpart. The only difference is credit limit that depends on how much you pay for safety deposit. Unsecured credit card uses debt record, income, and financial status to determine its limit. However, you do not have to worry about such things. As long as you pay money for deposit, you get enough credit limits to spend.
At first, Secured Capital One Credit Card is for people with difficult approval when applying for traditional credit card. After fulfiling five months for minimum payment or more, you get opportunity to upgrade into new credit line. Paying on time is good sign to receive further benefits and feature.
Capital One works together with MasterCard to issue the secured card. You will get more benefits, such as online and mobile app, fraud protection, travel insurance, car rental insurance, personalized payment, roadside assistance, price protection, etc.
Many things are important to know before applying Secured Capital One Credit Card. For application, you have to prepare some documents and open Capital One account. Further information is available at official website and you may call the customer service for more inquiry.