Capital One Secured Credit Card: Is it Worth it

steph2k10

Hi Guys i need some advice,

Okay, i dont have the best of credit right now, but i am paying back my Debts one by one ( some back ground information when i turned 18 i sort of went crazy with Mobile contracts and Payday Loans.. I no i was ignorant and now im living with the consequences ) Anyway that was 3 years ago, im still young im 21 and Capital One Offered me a Secured Credit card with a Deposit i pay of £200 and a limit of £200 which i see is fair.

But i dont want to make a mistake like the ones i made years ago, So what do you think of the card and if anyone has this card have you seen an improvement in your credit record.

MrSilk

I was in the same boat as you, when I was 18 I went crazy with Contracts and credit cards. I have the secured Credit Card and it does help.

In the past year I have been able to achieve new iPhone & Blackberry contracts and a better current account with Natwest.

The best thing to improve your status would be to pay back all of your debts. However, I would happily recommend the Secured Card, BUT please pay off the full balance each month to avoid interest!!. Capital One was one of my creditors, to whom I defaulted with back in 2007.

I shall be applying for a better card middle of next year.

MochiMochiLatte

I have no debt but I have clean-slate brand new credit profile with little credit history as moved to this country only 3 years back. So in terms of building up my credit file Secured Credit card from Capital One is a true blessing. But do not confuse it with Credit Card because in my case I had to pay £200 deposit to get £200 credit limit and I 'll be damned to pay interest on my own money that CC holding as a collateral. It is temporary but very effective measure to improve my "Poor" (not that I have any debt nor any defaults or problems at all) new credit file. It takes on average 6 month to a year to see it work. What I could use it for? Sanity tells me I'd probably ever punch that pin number only if I break a leg and need a cab to get to the hospital. Otherwise it is completely pointless in any other sense.

Maestro.

MochiMochiLatte wrote: »

I have no debt but I have clean-slate brand new credit profile with little credit history as moved to this country only 3 years back. So in terms of building up my credit file Secured Credit card from Capital One is a true blessing. But do not confuse it with Credit Card because in my case I had to pay £200 deposit to get £200 credit limit and I 'll be damned to pay interest on my own money that CC holding as a collateral. It is temporary but very effective measure to improve my "Poor" (not that I have any debt nor any defaults or problems at all) new credit file. It takes on average 6 month to a year to see it work. What I could use it for? Sanity tells me I'd probably ever punch that pin number only if I break a leg and need a cab to get to the hospital. Otherwise it is completely pointless in any other sense.

you will have to use it in some form or another unless you won't build a credit limit.

use it to buy some groceries and then pay off in full when your statement comes.

BugsyBrowne

steph2k10 wrote: »

Hi Guys i need some advice,

Okay, i dont have the best of credit right now, but i am paying back my Debts one by one ( some back ground information when i turned 18 i sort of went crazy with Mobile contracts and Payday Loans.. I no i was ignorant and now im living with the consequences ) Anyway that was 3 years ago, im still young im 21 and Capital One Offered me a Secured Credit card with a Deposit i pay of £200 and a limit of £200 which i see is fair.

But i dont want to make a mistake like the ones i made years ago, So what do you think of the card and if anyone has this card have you seen an improvement in your credit record.

You won't make the same mistake by taking on a cap1 secured credit card as the credit limit won't ever be high enough to get you into trouble.

MrSilk

BugsyBrowne wrote: »

You won't make the same mistake by taking on a cap1 secured credit card as the credit limit won't ever be high enough to get you into trouble.

True, £200 :D:D

RichL74

...and they already have your £200 as a guarantee.

MrSilk

RichL74 wrote: »

...and they already have your £200 as a guarantee.

And would use it to clear the balance (if any), when you come to close the account

RichL74

...or missed the monthly payment and then they would close it for you.

MrSilk

RichL74 wrote: »

...or missed the monthly payment and then they would close it for you.

That would earn you a default.

almost_there

I had one of these about 10yrs ago, paid £200 to get a £200 limit.

After 3 years, I got a letter saying they were stopping these cards and refunded my deposit. They also kept the account open and raised my credit limit.