Capital One Secured Mastercard CC

AprilAngel

Afternoon All

Does anyone have any experience with the Capital One Secured Credit Card they're offering? I'm looking at building my credit rating up as I have no history at all so I'm not looked upon favourably by any creditors it seems. I eventually want to own my own home and have the luxury of having credit available should I ever want it but I'm not sure what the deal is even after reading their website & FAQs?

I know you have to pay a deposit prior to receiving the card of up to £200 and the card has a max limit of £200 - so they keep the £200 aside and refund it when the account is closed should there be no outstanding balance/fees due etc. I get all that - but if this card is designed to give people like me a step ladder to creating a credit history, do they later review the secured card and offer you a higher credit limit if you prove you're managing the card and repayments well or are you stuck with it or do they just invite you to apply for the next card up?

I've heard they're really good at regularly reporting to the credit reference agencies so it shouldn't take long before a financial report starts to take shape which is good but I just wanted to know if anyone has one of these and if they managed to get offered an increase after a period of time etc?

Thanks

MrSilk

I've got one, had it for about 9 months, credit has improved but I can't tell if it's because of the card or my two orange contracts.

They don't increase the limit, you'd have to cancel the card after 8 - 12 months and apply for one of their unsecured cards. Although please bare in mind that it's not guaranteed you'd be accepted!

They report monthly to all CRA's

It also depends on if you have any CCJ's or recent defaults, if you have a CCJ/recent defaults then you'll see no improvement until they drop off. But it's best to start rebuilding your credit history now!

AprilAngel

Thanks for that, I think a combination of all 3 probably helped your report.

I lived abroad for 6 years only came back to the UK in 2012 so I have no financial history here at all so I think something like this is my only option realistically. I don't have any CCJ's or anything like that as I've never had credit to default on.

I take it when you close your secured card they'll refund your deposit - but can you apply for the new card prior to cancelling the secured card because if you cancel the secured one, you might not get accepted for the new one so in effect you'll lose both? I'm just trying to figure out how it all works sorry if I sound a bit simple! :rotfl:

MrSilk

Hey hey,

They carry out Fraud/Money Laundering checks but as far as I know they don't look into your credit or lack of credit.

They would refund the £200 if their is no outstanding balance owed. I believe you'd need to wait 2/3 months before re-applying for an unsecured card

No worries!, we're all here to help and advise

AprilAngel

Brilliant thanks. I've just applied online and they accepted me, sending everything out in the post etc. They said once I pay the £200 they'll send out my card & PIN and I'll be good to go. Hopefully now I can finally have something positive to show on my report!

MrSilk

Well done!, I'm pleased

They will send you a latter with instructions on how to pay the £200 deposit, which is done so online via visa debit card.

Once you've paid the deposit, they will send out the PIN, and then your card

When I applied last year, they allowed you to choose a card design, now I've seen there's just the boring grey one, I've got the green water splash one.. And it's contactless!

MrSilk

http://www.capitalone.co.uk/support/faqs-secured-card.jsf

The above may help you also

AprilAngel

Haha yes it looks a bit boring doesn't it?! I've never had a contactless card either but looking at the grey one it'd just be grateful for a bit of colour never mind any fancy new technology lol. How long roughly did it take for you to receive your card after you'd paid the deposit?

Thanks for the FAQs link, I did have a brief look on there prior to applying but they didn't answer anything about what happens next as in limit increases if you manage the account well etc but you've answered that for me now and I guess initially most people who apply just take one step at a time and worry about what happens next later on!

MrSilk

Ahah!, it took about two weeks before I received the card.

And if you need an additional card for an extra card holder, it takes about a week to receive any additional cards

AprilAngel

Sounds good thanks for all your help

MrSilk

You're very welcome good luck with your credit building!, oh and remember to ALWAYS pay the complete balance off each month after you receive the invoice