If you have less than perfect credit, a Capital One credit card could be the right card for you.
They handle over 25 million accounts and are one of the top 10 credit card issuers in the US. Most people think of Capital One as a company that deals with secured cards, but they are also making major inroads in the unsecured market as well.
A secured credit card is when a card member must leave a deposit at the bank, usually to pay off any unpaid balances. The interest rates are usually higher and the credit limits lower. The idea is to build up good credit, move away from the secured card, and go to the traditional, unsecured card.
Why is the secured card from Capital One worth recommending? Because Capital One has an excellent reputation and good experience in the secured card market. Also, the account does not require a deposit equal to the credit line. And finally, the terms are good compared to other secured cards.
Many secured cards have outrageous fees, including application fees, annual fees, accountng fees, and processing fees. This card has only an annual "membership" fee which is $39.
If you make a late payment or go over your credit limit, there is a $25 fee. Additionally, if you bounce a check in payment of your account you will be assessed with another $25 returned check fee. Remember that all these fees, as well as your finance charges, can put you over your credit limit, so make sure you leave a margin of credit for any fees and/or finance charges you anticipate on your account.
Late Payments and going over the limit on your account will leave bad marks on your credit. The fees are the least of your worries. The goal is to establish good credit, so be extra careful on your account.
