What the Capital Credit Card is
The Capital Credit Card is a secured credit card issued by Capital One, a major bank. You put down a cash deposit, and that deposit becomes your credit limit. If you deposit $500, you get a $500 limit. The card reports to all three credit bureaus — Equifax, Experian, and TransUnion — so on-time payments build your credit history.
This card is designed for people rebuilding credit or starting from scratch. You use it like any other card: make purchases, pay your monthly bill, and the activity shows up on your credit report. After you've used it responsibly for several months, Capital One may convert it to an unsecured card and return your deposit.
The card comes with an annual fee and a variable interest rate. Both of these vary depending on your creditworthiness at the time you open the account, so two people approved on the same day may see different terms.
Key Takeaways
- You must deposit cash upfront, and that amount becomes your spending limit.
- The card reports to all three credit bureaus, so consistent on-time payments help rebuild your credit score.
- An annual fee applies, and the interest rate varies by applicant.
- Capital One may upgrade you to an unsecured card and return your deposit after you demonstrate responsible use.
- You can increase your credit limit by adding more money to your deposit after several months of on-time payments.
How to open a Capital Credit Card account
You can open an account online at Capital One's website, by phone, or in person at a Capital One bank branch if one is near you. Online is the fastest route — the entire process usually takes 10 to 15 minutes.
You'll need to provide your Social Security number, date of birth, current address, and employment information. Capital One will pull your credit report and make a decision within minutes in most cases. If you're approved, you'll choose your deposit amount and how you want to fund it. You can transfer money from a bank account or, in some cases, use a debit card.
Once your deposit clears — usually within one to three business days — your card will arrive by mail within 7 to 10 business days. You can start using it as soon as it arrives.
Deposit requirements and credit limits
Capital One requires a minimum deposit of $200 and accepts deposits up to $2,500. Your deposit amount is your initial credit limit. So if you deposit $500, you can spend up to $500 before you have to pay your bill.
After you've made on-time payments for several months — typically four to six — you can request a credit limit increase by adding more money to your deposit. Capital One may also offer you an increase without asking. Some cardholders report receiving increases after just a few months of responsible use.
Your deposit stays in a separate account and earns no interest. It is held as collateral and is not touched unless you stop paying your bill or close the account.
Fees and interest rates
The annual fee ranges from $0 to $39, depending on your creditworthiness when you open the account. Capital One does not publish the exact criteria for who pays what, but people with better credit scores at approval tend to pay lower fees or no fee at all.
The interest rate (called the APR, or annual percentage rate) is variable and also depends on your credit profile. Rates typically range from 18% to 24%, though this can vary. If you carry a balance from month to month, you'll pay interest on that balance at your APR.
The best way to avoid interest charges is to pay your full balance by the due date each month. Since this card is meant to help you build credit, paying on time every month is the whole point.
How payments and credit reporting work
You can make payments online through Capital One's website or app, by phone, by mail, or in person at a Capital One branch. Payments are due on the same date each month. If you pay online or by phone, the payment usually posts within one business day.
Capital One reports your account activity to Equifax, Experian, and TransUnion every month. This means your payment history, credit utilization (how much of your limit you're using), and account age all show up on your credit report. Making payments on time every month is what raises your credit score over time.
If you miss a payment, that also gets reported. A late payment can hurt your credit score and may trigger a late fee. Capital One typically charges a late fee of up to $39 if your payment arrives more than 60 days late.
When Capital One converts your card to unsecured
After you've demonstrated responsible use — usually 6 to 18 months of on-time payments — Capital One may offer to convert your secured card to an unsecured card. When this happens, your deposit is returned to you, and your credit limit may increase.
You don't have to wait for Capital One to offer. You can contact them and ask about conversion after six months of on-time payments. There's no may provide they'll convert, but asking doesn't hurt. Conversion depends on your payment history, how much of your limit you're using, and your overall credit profile.
Once converted, the card works like any other credit card. You no longer need the deposit, and you can use the returned funds however you want.
Alternatives to the Capital Credit Card
Other banks offer secured credit cards with similar terms. The Discover Secured Card, for example, has no annual fee and also reports to all three bureaus. The Citi Secured Mastercard requires a $200 minimum deposit and has no annual fee. The key difference between cards is usually the annual fee, the interest rate, and how quickly the issuer converts to unsecured.
If you have a thin credit file but not damaged credit, you might may have access to for an unsecured card without putting down a deposit. Unsecured cards for fair credit exist, though they typically come with higher interest rates and lower limits than cards for people with good credit.
If you're rebuilding after a bankruptcy or major delinquency, a secured card is usually the most realistic path. The deposit removes the risk to the bank, so approval is much easier.
Frequently Asked Questions
Do I get my deposit back?
Yes, but only when you close the account or when Capital One converts your card to unsecured. If you close the account, your deposit is returned to you within 7 to 10 business days, minus any unpaid balance or fees. If Capital One converts your card, they return the deposit automatically and your credit limit becomes unsecured.
Will this card hurt my credit score?
Opening any credit account triggers a hard inquiry, which can lower your score by a few points temporarily. But once the account is open, on-time payments will raise your score over time. The temporary dip is worth it if you use the card responsibly for several months.
What happens if I can't pay my bill?
Contact Capital One as soon as you know you'll miss a payment. They may offer a hardship program or payment plan. If you don't pay, the late payment gets reported to the credit bureaus, your score drops, and late fees accumulate. If you're 60 days late, Capital One can use your deposit to cover the debt.
Can I use this card abroad?
Yes, the Capital Credit Card works internationally wherever Mastercard is accepted. However, Capital One charges a foreign transaction fee of 1% on purchases made outside the United States. Check your cardholder agreement for the exact fee.
How long does it take to build credit with this card?
You'll see movement in your credit score within 30 to 60 days of opening the account and making your first on-time payment. Significant improvement typically takes 6 to 12 months of consistent on-time payments. The longer your account stays open and active, the more it helps your score.