If you’re working on building your credit history, Capital One’s new Quicksilver Secure Rewards Card might be worth a look. This can help you build a credit history and possibly upgrade to the unsecured version of the card. The card launched on October 19 and is available for new applications. However, applicants who currently have bad credit may not be eligible.
Key points to remember
- Capital One has launched a new secure credit card that offers 1.5% cash back on every purchase.
- Unlike the Capital One Secured Mastercard, this one is designed for consumers with fair credit.
- With responsible use of the card, cardholders can switch to the unsecured Quicksilver Rewards card and get their deposit back.
Capital One adds another credit creation option
Building credit can take some time, but a credit card is often the best way to do it because as long as you pay your bill on time and in full each month, you can build credit without paying interest.
With the new Capital One Quicksilver Secured Rewards credit card, you can also earn 1.5% cash back while you work to build a positive credit history. There is no annual fee and you will need a security deposit of at least $ 200, which gives you a corresponding credit limit of $ 200. The maximum credit limit is $ 1,000 to $ 3,000, depending on your creditworthiness.
Based on your payment history with the card and your overall creditworthiness, an increase in your line of credit can be considered without having to make an additional down payment.
Unlike other secured credit cards, this one is designed for people with fair or limited credit, but not bad credit. Capital One defines a borrower with fair credit as someone who has defaulted on a loan within the past five years or has a limited credit history of three years or less.
These are the same criteria used for the Capital One QuicksilverOne Cash Rewards credit card. The difference is that the QuicksilverOne card doesn’t require a security deposit, but it does charge an annual fee of $ 39. Although you must pay a security deposit to the Quicksilver Secured card, there is no annual fee and you can get your deposit back if you use the card responsibly.
Is the Quicksilver Secure Card Right For You?
One of the downsides of many secured credit cards is that you have to close your account to get the money back from your deposit. But closing a credit card account can negatively impact your credit score, and it also prevents you from using that account to continue building your credit history. The age of your accounts is one of the factors used to determine your credit score.
Fortunately, more and more card issuers are offering cardholders the option of switching to an unsecured card and getting their deposit back without having to close the account. This new card is the last such option.
While there are many unsecured credit cards for consumers with fair credit, some charge an annual fee or don’t offer rewards. While an initial security deposit can be a pain, it could be worth it if you want a strong credit card with cash back once you’ve built up your credit history enough, and you won’t have to close. your account or apply for a second credit card to make it happen.
That said, even a $ 200 security deposit may be too high for some, so be sure to determine if that would be a burden on you.