Capital One Question !

MichaelCR

I applied for a capital One credit card (classic visa) last night.

I was accepted but on the condition I deposit £200 !

Has anyone else had this ?

john1002

A few people on here, they seem to have re-introduced there secured card. You deposit £200 they then give you a credit card with a £200 limit. It is still a new card so no one knows yet how long they keep the deposit and how long after you get it back that you then can get limit increases or can get an upgrade.

Of course it operates like a normal account so nice green ticks for the CRA but as with all sub prime cards make sure you pay off the baalnce every month to avoid interest as the rate will be high.

john

SnowTiger

MichaelCR wrote: »

I applied for a capital One credit card (classic visa) last night.

I was accepted but on the condition I deposit £200 !

Has anyone else had this ?

Yep, several others have. There's a FAQ on Capital One's website about it.

It appears to be offered to some applicants who would previously have been declined a credit card by Capital One.

Unfortunately the FAQ doesn't answer obvious questions, such as is the upkeep of the account reported to the credit reference agencies? and does it offer Section 75 protection? I'd guess the answer is no to both questions because Capital One isn't providing credit.

MichaelCR

SnowTiger wrote: »

Yep, several others have. There's a FAQ on Capital One's website about it.

It appears to be offered to some applicants who would previously have been declined a credit card by Capital One.

Unfortunately the FAQ doesn't answer obvious questions, such as is the upkeep of the account reported to the credit reference agencies? and does it offer Section 75 protection? I'd guess the answer is no to both questions because Capital One isn't providing credit.

Thank you so much !

Do I Actually get a line of credit with this card though ? Otherwise its pointless paying £200 for effectively what is a prepaid card...

Thanks for your answer.

MichaelCR

john1002 wrote: »

A few people on here, they seem to have re-introduced there secured card. You deposit £200 they then give you a credit card with a £200 limit. It is still a new card so no one knows yet how long they keep the deposit and how long after you get it back that you then can get limit increases or can get an upgrade.

Of course it operates like a normal account so nice green ticks for the CRA but as with all sub prime cards make sure you pay off the baalnce every month to avoid interest as the rate will be high.

john

Thanks! That answers my question

chanz4

When do I get my security sum back? What do you do with my security sum? Can I use my security sum to pay off my card or minimum monthly payment? Is my credit card account treated any differently to other Capital One credit cards? Does paying a security sum for the Capital One Secured Card appear on my credit file? If I close my account and my security sum is used to clear any outstanding balance, will this show on my credit file? Back to FAQ subjects
When do I get my security sum back?
We refund the full amount of your security sum when you close your account, as long as you do not have any outstanding payments, fees or interest payable.

If your outstanding balance is less than your security sum, we will clear the account and send you the difference. If you have a balance outstanding that is greater than your security sum, we will ask you to pay the difference to enable the account to be closed.
Back to FAQ subjects
Back to 'Capital One Secured Card' FAQs
What do you do with my security sum?
While your account is open, we will keep your security sum in a separate account.
Back to FAQ subjects
Back to 'Capital One Secured Card' FAQs
Can I use my security sum to pay off my card or minimum monthly payment?
No, the security sum is not held in your card account and you must make your monthly payments separately. Your monthly statements will let you know how much you need to pay and when.

In certain circumstances, for example where you fall behind on your minimum repayments, we could use some or all of your security sum to pay off any outstanding balances on your account. We will send you written notice before using your security sum in this way.

Many of our customers find that setting up a Direct Debit is the easiest way of not forgetting to make the monthly payment. To set one up, simply visit the Pay Bill page and complete the online form.
Back to FAQ subjects
Back to 'Capital One Secured Card' FAQs
Is my credit card account treated any differently to other Capital One credit cards?
No, you can use your Secured Card in the same way as other Capital One credit cards e.g. making purchases in shops, over the phone and online. You are still required to adhere to the terms and conditions of your card which include making your minimum payments on time and staying within your credit limit.
Back to FAQ subjects
Back to 'Capital One Secured Card' FAQs
Does paying a security sum for the Capital One Secured Card appear on my credit file?
No, this information will not appear on your credit file.
Back to FAQ subjects
Back to 'Capital One Secured Card' FAQs
If I close my account and my security sum is used to clear any outstanding balance, will this show on my credit file?
No, this information will not appear on your credit file.
Back to FAQ subjects
Back to 'Capital One Secured Card' FAQs

chanz4

I have the progress card with capital one and noticed this in the faq section of account services

Chrisblue1962

MichaelCR

At what point were you told that a £200.00 security deposit applied? Was this upon the screen when completing your application?

I applied on 5th January 2012 but haven't heard anything yet ... :think: probably been rejected

Also, if you have to provide a security deposit, surely they don't charge you interest for effectively spending your own money?

john1002

the securtiy deposit is so they can issue a card, with regard interest you will pay that if you dont pay the balance off the card as with any credit card. look at the security deposit as the only way cap one will give you a card. To be honest at least he got the offer many on here that apply dont even get that.

john

MichaelCR

Chrisblue1962 wrote: »

MichaelCR

At what point were you told that a £200.00 security deposit applied? Was this upon the screen when completing your application?

I applied on 5th January 2012 but haven't heard anything yet ... :think: probably been rejected

Also, if you have to provide a security deposit, surely they don't charge you interest for effectively spending your own money?

It did the 3 checks on the one minute application all with green ticks, then took me to a page offering a capital one (mastercard) so long as I pay a £200 deposit within 80 days, I signed and agreed and was given a long reference number which i wrote down, I'm wondering A. what my credit limit is going to be, And B. After lets say 6 months of good account conduct whether I could apply for a classic or progress and close down the secured card !

Either way even a credit card with a £50 limit would do me just fine seeing as i'm only using it to build up my terrible credit history, Pay it in full and on time everytime !

I've heard of capital one giving secured cards in the past, but then they just rejected applicants, me to was rejected around 8 months ago !

I'll keep you guys updated !

chanz4

the limit will be £200