The Capone Credit Card is a secured card designed for people building or rebuilding credit
The Capone Credit Card requires a cash deposit that becomes your credit limit — typically between $200 and $2,500, depending on what you deposit. You use the card like any other credit card, and your payment history gets reported to the three major credit bureaus (Equifax, Experian, and TransUnion). After you demonstrate responsible use over time, the issuer may convert it to an unsecured card and return your deposit.
This card is issued by Megalith Credit Card Company and marketed primarily to people with limited credit history, past credit problems, or those working to improve a low credit score. The card itself carries an annual fee, and interest rates are higher than cards offered to people with established good credit. Understanding the actual costs and what happens after you open the account matters before you decide whether this card fits your situation.
Key Takeaways
- Your deposit becomes your credit limit, so a $500 deposit gives you a $500 limit — the card issuer does not add extra credit on top.
- The card charges an annual fee and a higher interest rate than standard credit cards, so carrying a balance costs more than it would with other cards.
- Payment history reports to all three credit bureaus, which means on-time payments help your credit score, but late payments hurt it.
- After 6 to 18 months of on-time payments, you may be able to convert to an unsecured card and recover your deposit, though this is not may provide.
- You need a valid Social Security number, a U.S. mailing address, and a bank account to open this card.
How the deposit and credit limit work
When you open a Capone card, you choose how much to deposit, and that amount becomes your credit limit. If you deposit $500, your limit is $500. The issuer does not give you additional credit beyond your deposit. You can use the card up to that limit, just like a regular credit card.
Your deposit sits in a separate account held by the card issuer and earns no interest. You cannot withdraw it while the card is active. The deposit protects the issuer if you stop paying, which is why secured cards exist — they let people with thin or damaged credit histories prove they can handle a credit card responsibly.
If you want a higher limit later, you would need to make an additional deposit. Some cardholders increase their deposit over time as their financial situation improves, which raises their limit without closing the original account.
Annual fees and interest rates
The Capone card charges an annual fee, which varies but typically falls in the $35 to $99 range depending on the specific card product and any current promotions. This fee is charged once per year, usually on your account anniversary or the date you opened the card. You pay this fee whether you use the card or not.
The interest rate (called the APR, or annual percentage rate) is significantly higher than rates offered to people with good credit. Rates typically start around 18% to 24% APR, though your actual rate depends on your credit profile at the time you open the account. If you carry a balance from month to month, you pay interest on that balance at this rate.
To avoid interest charges, pay your full statement balance by the due date each month. If you can only pay part of the balance, the unpaid portion accrues interest at your card's APR. Many people use secured cards specifically to build credit, which means paying the balance in full each month and keeping the card active for the credit history benefit.
How opening this card affects your credit
When you open the Capone card, the issuer performs a hard inquiry on your credit report. This inquiry temporarily lowers your credit score by a few points — typically 5 to 10 points — and stays on your report for about two years. However, the score impact fades over time, especially as you build positive payment history.
Once the account is open, every payment you make (or miss) gets reported to Equifax, Experian, and TransUnion. On-time payments help your score because payment history is the largest factor in credit scoring. Late payments hurt your score significantly and stay on your report for seven years. Even one missed payment can set back your credit-building progress by months.
The card also affects your credit utilization ratio — the percentage of your available credit that you are using. If your limit is $500 and you carry a $250 balance, your utilization is 50%. Credit scoring models favor lower utilization, so keeping your balance well below your limit helps your score more than maxing out the card.
When the card converts to unsecured status
After you demonstrate consistent on-time payments — usually 6 to 18 months, though timelines vary — the issuer may offer to convert your card to an unsecured card. Unsecured means you no longer need the deposit backing the account. When this happens, your deposit is returned to you, usually within 5 to 10 business days.
Conversion is not automatic and is not may provide. The issuer reviews your account based on your payment history, how much of your credit limit you use, and your overall credit profile. Missing even one payment can delay or prevent conversion. Some cardholders never receive a conversion offer, which means they keep the card as secured indefinitely or close it and move to a different card.
When your card converts, the account itself stays open and continues to report to the credit bureaus. This is important because closing old accounts can hurt your credit score, so keeping the converted card active — even if you do not use it much — helps your credit history length and overall profile.
Comparing the Capone card to other secured card options
Several other issuers offer secured credit cards with similar structures: the Capital One Secured Mastercard, the Discover it Secured Card, and the OpenSky Secured Visa are common alternatives. Each has different annual fees, interest rates, and conversion timelines. The Capital One card, for example, typically has a lower annual fee but a higher interest rate. The Discover card often has no annual fee but requires a higher minimum deposit.
Before opening any secured card, compare the total cost of ownership: annual fee plus the interest rate you would pay if you carry a balance. A card with no annual fee but a 24% APR may cost more over a year than a card with a $50 annual fee and an 18% APR, depending on how much you use it.
Some people also consider unsecured cards designed for people rebuilding credit, which do not require a deposit but typically have higher interest rates and lower limits. These cards may be harder to get approved for if your credit is very damaged, but they avoid tying up cash as a deposit. The right choice depends on your credit situation, how much cash you can deposit, and whether you can commit to on-time payments for at least six months.
What you need to open an account
To open a Capone card, you need a valid Social Security number, a current U.S. mailing address, and a bank account (checking or savings). The issuer verifies your identity and may check your credit report. You do not need an existing credit history or a high credit score — the card is designed for people with limited or poor credit — but you do need to be at least 18 years old and a U.S. citizen or permanent resident.
The process process is online and typically takes 10 to 15 minutes. You provide your personal information, income, and employment details. The issuer makes a decision within a few minutes to a few hours in most cases. If you are approved, you fund the account by transferring your deposit from your bank account, and your card arrives by mail within 7 to 10 business days.
If you are denied, you can reapply after addressing whatever issue caused the denial — for example, if your address could not be verified, update your address and try again. Some people are denied because of fraud alerts or security freezes on their credit report, which you can lift by contacting the credit bureaus directly.
Frequently Asked Questions
Can I use the Capone card internationally?
Yes, the card works anywhere Mastercard is accepted, including outside the United States. However, international purchases typically include a foreign transaction fee of 1% to 3% of the purchase amount. Check your cardholder agreement for the exact fee before using the card abroad.
What happens if I miss a payment?
A missed payment is reported to the credit bureaus and damages your credit score. The issuer may charge a late fee (typically $25 to $35) and increase your interest rate. If you miss a payment, contact the issuer when ready to bring the account current. One late payment can set back credit-building progress by several months.
Can I increase my credit limit without adding more money?
Most secured card issuers do not increase your limit without an additional deposit. However, after conversion to an unsecured card, you may be able to request a limit increase without depositing more money. Ask the issuer about their policy on limit increases before you open the account.
Does the Capone card have a grace period for purchases?
Yes, most credit cards including the Capone card offer a grace period — typically 21 to 25 days — during which you can pay your balance without interest. The grace period applies only if you paid your previous balance in full. If you carry a balance, interest accrues when ready on new purchases.
What if I want to close the card before it converts?
You can close the card at any time by contacting the issuer. When you close it, your deposit is returned to your bank account within 5 to 10 business days. However, closing the account stops the credit history it builds, so closing early may slow your credit-building progress. Keep the card open for at least 6 to 12 months before closing if your goal is to improve your credit score.