If you are looking for a credit card with a low annual percentage rate, no annual fee and flexible features, then Capital One's Secured credit cards may be right for you. However, there are also a few downsides to this card. Before deciding on this card, here is a detailed look at the advantages and disadvantages of Capital One Secured credit card.
Advantages. This card has a low introductory offer of 60 days with no annual fee. No foreign transaction fee, high interest rates and flexible rewards programs are also benefits of this card. Build Your Credit – No annual fee.
Disadvantages. First, a zero percent introductory period will only last for 60 days. During this time, there will be a significant increase in the balance and annual percentage rate. There is a limit of credit limit on the card too. Second, Capital One does not offer any rewards or perks during the introductory period. Third, the credit limit is very low for a new card. Fourth, a separate deposit is required for each month with this card.
Disadvantages – As stated above, there are many disadvantages of this card. The only good thing about this card is the cash back reward program. The cash back reward will provide you cash on certain purchases, like gas or grocery shopping. You can also use your cash back reward to pay your balance every month. For the other purchases, you will get your money back.
Capital One has a rewards program that offers points or cash value for certain types of purchases. While using these points, you can redeem them for air miles, merchandise or gift cards.
As you can see, it is important to look at the advantages and disadvantages before choosing a credit card. There is a card that suits your needs and you can start applying right away.
Capital One Secured credit cards have higher credit limits than other cards available in the market. There are several benefits that one can obtain by using this card, but the disadvantages outweigh the advantages in the end.
So it is better to avoid this card and spend your money on other cards or even an unsecured credit card. If you already have one, try to find a cheaper . . . . . . credit card.
Now that you have learned a little more about Secured credit cards, you can decide for yourself if this is right for you. or not.