Capital one secured mastercard upgrade -
Wells Fargo Business Secured Credit Card
There is no annual rewards program fee. If you select the Wells Fargo Business Card Rewards® cash back program option, you will earn 1.5% on qualifying purchases (purchases less returns and credits, and excluding balance transfers, cash advances, SUPERCHECKSTM and welcome check transactions, or any fees or interest posted to the account) for the life of the account. Earned cash back is credited quarterly (March, June, September, and December) to your Wells Fargo business credit card account or to an eligible business checking or savings account. The cash back earned and transferred to the primary business credit card account from employee card accounts in March, June, September, and December cycles will not be credited until the next quarterly rewards distribution cycle. There is no limit to the cash back earned. Wells Fargo reserves the right to cancel, alter, or temporarily suspend the program at any time without notice. Some restrictions may apply. Additional information about the cash back program will be mailed separately.
There is no annual rewards program fee. If you select the Wells Fargo Business Card Rewards® points program option, you will earn one point for every dollar spent on qualifying purchases (purchases less returns and credits, and excluding balance transfers, cash advances, SUPERCHECKSTM and welcome check transactions, or any fees or interest posted to the account) for the life of the account. To earn the 1,000 bonus points each billing cycle, your total company spend must be a minimum of $1,000 in qualifying purchases. For companies with individual billing, bonus points calculation is based on owner points earned in the current statement cycle, plus employee points earned in the previous statement cycle. The bonus maximum is 1,000 points per company per month. Wells Fargo reserves the right to cancel, alter, or temporarily suspend the program at any time without notice. Some restrictions may apply. See additional information about the points program at wellsfargo.com/businessrewards.
Your credit limit will be in an amount between $500 and $25,000, based on the amount of funds deposited by you as security in a collateral account.
Prime refers to the rate that Wells Fargo announces from time to time as its Prime Rate, which is 3.25% as of 07/01/2021. The Wells Fargo Prime Rate is subject to change at any time. The Prime + 11.90% interest rate applies to purchases only. Cash advances are subject to an interest rate of Prime Rate + 20.74%.
A $24 redemption fee will be assessed for each airline ticket redemption, and tickets must be redeemed online at wellsfargo.com/businessrewards or the Business Rewards Service Center.
The offer varies based on merchants participating in the Earn More Mall® site. Earn More Mall bonus points are earned on qualifying purchases (purchases minus returns/credit) only at the participating merchants. To see the complete Terms and Conditions, please visit Earn More Mall.
Subject to account eligibility requirements. If you choose to link your account to your Wells Fargo business checking account for Overdraft Protection, please note the following: Depending on your account terms, an Overdraft Protection advance fee may be charged to your account each day an Overdraft Protection advance is made, and the fee varies based on the amount of the advance. Advances from your credit account are treated as cash advances and interest will accrue from the date each advance is made. Your credit card must be activated; if it is not activated, no money will transfer to cover the overdraft. Once your credit card has been activated, please allow up to 3 business days for your Overdraft Protection service to be fully enabled. Refer to your Customer Agreement for details about Overdraft Protection advances. For information about overdraft services, please visit www.wellsfargo.com/checking/overdraft-services/.
Sign-up may be required. Availability may be affected by your mobile carrier's coverage area. Your mobile carrier's message and data rates may apply.
Terms for credit products are subject to final credit approval of the business and its owners. A physical address is required to receive a Wells Fargo business credit product. You must be an owner of this business and not already have this product. See Terms and Conditions for details at account opening.
FICO is a registered trademark of Fair Isaac Corporation in the United States and other countries.
Wells Fargo Bank, N.A. Member FDIC.
Purchase APR (variable)
New to credit
Recommended credit score
|Purchase APR||26.99% variable|
|Balance transfer APR||26.99% variable|
|Minimum Credit Score||New to credit|
|Balance transfer fee||$0|
|Cash advance rate||26.99% variable|
|Cash advance fee||$10 or 3% of the cash advance amount, whichever is greater|
|Foreign transaction fee||None|
|Interest free period||Up to 25 days|
|Late payment fee||Up to $40|
|Security deposit||$49, $99 or $200|
Steven Dashiell[email protected]
Steven Dashiell is a writer at Finder specializing in all things credit cards. With more than 300 articles under his belt, he aims to help readers embrace credit cards and maximize their rewards. Steve is studying to become a Certified Educator in Personal Finance, and is a frequent face on Finder’s YouTube channel, offering the latest in credit card hacks and advice. His expertise has been featured on numerous outlets, including U.S. News & World Report, Time, CBS, Fox Business, Lifehacker, Martha Stewart Living and more.
The Capital One Platinum Secured Credit Card is one of the easiest secured cards to use on the market because it focuses on the basics. It features $0 annual fee, a security deposit as low as $49, an ongoing variable APR of 26.99%, and the opportunity for a higher credit line after six months.
Typically, the amount you deposit for your secured card becomes your credit limit. With the Capital One Platinum Secured Credit Card, you may receive a higher credit limit than what you deposit. You could even see a bump to your credit line after 6 months. These benefits make it easier to get a secured card — and eventually graduate to an unsecured card.
The card also comes with a generous amount of account management and security features, which can help cardholders stay on top of their account activity. This combination of simplicity, flexibility and safety led to this card earning a place on our Best of 2021 list for secured credit cards.
Capital One offers preapproval through its online application, so you should receive a decision within a minute. Once you’re approved, it typically takes seven to 10 days to receive your credit card in the mail. Expect to get a copy of your card agreement and welcome materials with the new card.
- Click Apply now.
What should I know before I apply?
If you’re ready to apply for the Capital One Platinum Secured Credit Card, check that you have the required information and funds for the security deposit.
- You’re at least 18 years old.
- You have a checking or savings account.
- You have an address in the 50 United States, Washington, DC or a US military location.
- Your monthly income exceeds your monthly rent or mortgage payment by at least $425.
Required documents and information
- Your name, date of birth and citizenship status.
- Your Social Security number.
- Your address.
- Your email address and primary phone number.
- Financial information like your employment status, total annual income and monthly rent or mortgage payment.
- No annual fee. You’ll need to put down a security deposit for this card, so it’s nice not to pay an additional fee.
- Opportunity to deposit less than $200. With most secured credit cards, your credit line is equal to your security deposit. For the Capital One Platinum Secured Credit Card, you may only have to deposit $49 or $99 and still get a $200 credit line. It’s not a guarantee, though — depending on your credit history and information on your application, you may be required to put down a $200 deposit. If you want a higher credit line, you’re welcome to deposit more — up to a maximum of $1,000.
- Potential for higher credit line with responsible use. Capital One may consider your account for a credit line increase after six months of responsible use.
- No balance transfer fees. You can make balance transfers at no cost. But this card may not be the cheapest way to transfer balances with high APR for call balances.
- Security deposit required. Since this is a secured card, you’ll need to put down a security deposit before you can use your account. This differs from an unsecured card, which doesn’t require a deposit.
- High APR. The Capital One Platinum Secured Credit Card comes with an APR on all balances of 26.99% variable. That’s a high rate considering the average APR is around 16%, but it’s not uncommon among secured cards. Consider paying off your balance completely each month. It’ll keep you from accruing interest at a high rate, and it’ll set you up for good credit habits.
If you’re curious what other secured credit cards on the market are like, select up to four cards and click Compare to view their features side-by-side.
Many cardholders say they’ve received $200 credit limits with lower deposit amounts, and customers say their credit scores have improved since getting the card. Some reviewers advise paying off your balance every month to avoid interest charges.
Capital One is accredited with the Better Business Bureau (BBB) and receives an A+ rating from the agency. It has almost 5,000 customer complaints at the time of this writing, many of which the BBB reports have been answered by Capital One or resolved to customers’ satisfaction.
- Set up automatic payments from your Capital One online account. Enrolling in autopay is a great way to ensure you make on-time payments, which is a bedrock of building credit.
- Avoid interest. The Capital One Platinum Secured Credit Card has a high interest rate on all purchases, so it’s an excellent idea to pay off your balance entirely each month.
- Avoid fees. Late payments come with fees of up to $40. These fees are a huge drag when you’re trying to build credit, so make your payment on time.
- Contact customer service with questions. If you have questions, contact the number on the back of your card. Alternatively, contact Capital One’s main customer service line at 800-227-4825.
What credit score did you have when you were approved for this credit card?
Based on a survey data of 124 people (out of 1076 respondents) on finder.com.
What interests you most about this credit card?
Based on a survey data of 796 people (out of 1076 respondents) on finder.com.
|Credit building features||64.57%|
|Minimum deposit / credit line||30.15%|
|Features and benefits||3.02%|
If you’re looking for a secured card, add Capital One’s product to your shortlist. You may pay a low security deposit, and you may receive a credit line boost after 6 months of responsible use. If you use your card responsibly and pay your bill in full each month, you’ll be able to graduate to an unsecured card in no time.
Looking to compare more secured cards before you decide? Take your time and check out the best no-annual-fee secured products.
Images: Capital One
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I Worked at Capital One. Hacks Like This Are Most Dangerous for Low-Income People.
The Capital One breach announced recently compromised the data of 100 million Americans, which is nearly 40 percent of all U.S. adults. After the Equifax, Target, Home Depot, and Marriott hacks, it can be easy to shrug off the news of another leak, but one group of consumers is at particular risk in the Capital One breach: 80,000 Americans who applied for secured credit cards with the company.
The hacker, Paige Thompson, gained access to personal information such as income, address, and credit scores for seemingly all recent applicants to Capital One credit cards. For secured card applicants, who tend to be low-income, bank account information was compromised as well.
A secured card normally resembles other subprime credit cards — they still report to the credit bureaus, they still charge interest and late fees, and you can still default on the card if you don’t make your payments. But borrowers need to put down a security deposit in order to obtain one, which requires access to the borrower’s bank account information.
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The fact that bank account credentials were compromised raises the stakes for those consumers: even compared to credit card fraud, resolving checking account fraud is no walk in the park, and the costs here will be borne by people who can’t afford to take a hit.
For consumers who don’t think they can get approved for a normal credit card, secured cards can be appealing. And who are those consumers? They don’t have a lot of money: Federal Reserve Bank of Philadelphia researcher Larry Santucci has found that the median income of secured card customers is $35,000, compared to $50,000 for Americans with unsecured credit cards.
Of course, given that these incomes are self-reported, and that credit card companies aren’t required to validate the income of all credit card applicants, this income data is almost certainly overstated: Plenty of people know they can get declined for a credit card for being too poor.
I worked at Capital One for five years, from 2013 to 2018. For a short stint during that time, I was in charge of the secured card product. I know most secured card customers are in no position to absorb a financial shock — and, unfortunately, having your checking account data leaked puts you in a much more dangerous position than a simple breach of your credit card number, or even your Social Security number.
If you apply for a Capital One secured card and get approved, you’ll initially be assigned a $200 credit limit, contingent on you sending in a security deposit of either $49, $99, or $200. The minimum security deposit you have to make depends on your risk as an applicant.
Think about that for a second: People are putting down a $200 deposit, to get a $200 credit limit, and the product makes money because people then borrow against their own deposit at a 26.99 percent interest rate — one of the highest in the industry — and get hit with late fees up to $39 when they fail to make payments on time. Santucci has found that only one in four secured card customers pays their credit card bill in full every month.
Some secured card customers are “new-to-credit,” but major banks such as Bank of America, Wells Fargo, and Discover have all been known to give out credit cards, at least with small credit limits, to people without credit history. If you’re new-to-credit but you have a checking account, and you also realize that your odds of being approved for an unsecured credit card are pretty high if you walk into a branch of your bank (of course, not everyone realizes this), you’re not likely to find a secured card attractive.Your checking account could be emptied.
More commonly, secured card customers have low credit scores – the typical customer’s FICO is in the 500s — an obvious indication that they’ve struggled in the past to pay bills and to make ends meet. This condition can be temporary —your credit score might still be low even though your finances have recovered, since missed payments lower your credit score for seven years — but many Americans who struggle financially never achieve the stability they’d need to keep a high credit score. In a country where plenty of people live paycheck-to-paycheck, but only a third have subprime credit scores, secured card holders and applicants tend to be under real financial distress.
Because secured card applicants have to put down a security deposit, they’re not approved until they give Capital One checking or savings account information and their deposit is sent, unlike users of unsecured cards. This is what puts Capital One’s secured card holders at greatest risk after the breach.
To see why, it’s helpful to take a second to think about the exact ways in which a data breach comes back to bite consumers — especially given that you’re usually not on the hook for purchases fraudulently made in your name, whether someone has stolen your credit or debit card, or opened up an account using your identity.
Lose your credit card number, as in the Target or Home Depot breach, and you can usually resolve things with quick phone call to your bank if a fraudster makes purchases on your card. Lose your Social Security number and address, like in the Equifax breach, and someone can open up new accounts in your name, or take over your existing accounts by calling the bank, pretending to be you, and changing the contact information. Proving someone else did this can be anywhere from moderately to extremely time-consuming depending on your circumstances: it took reporter Phil McKenna a few days to clear things up, a typical amount of time for garden-variety identity theft, where you’re usually out time but not money.
But let’s consider what it will look like if someone uses the checking account information from a Capital One secured card customer to commit ACH (Automated Clearing House) fraud – using the customer’s checking account routing numbers and account numbers to set up unauthorized withdrawals, write counterfeit checks, or even pay off the fraudster’s own credit card.
If you’re a Capital One secured card customer, your checking account could be emptied. If you don’t notice what happened, you might try to make purchases and get hit with overdraft fees expecting money to be available that’s gone. Odds are very high you’re living paycheck to paycheck. Your Capital One secured card may have a limit as low as $200, and, across the industry, the typical secured card customer has only one credit card. If that happens, how are you supposed to buy groceries, bus fare, or diapers?
What’s known as Regulation E requires the bank credit your account within 10 days of when you notify them about fraud, unless further investigation is needed: a Capital One spokesperson told me they try to resolve most cases well under that limit, and said they refund any overdraft fees they determined occurred because of the fraud, whether it was the fraudulent transaction or a subsequent legitimate transaction took the account to a below $0 balance.
Everything depends on how quickly the customer notices something was wrong, how comfortable she is advocating for herself, and how equipped she is to go up to 10 days with nothing in the bank. Nearly 40 percent of Americans couldn’t cover a $400 emergency expense without borrowing money, even without having their checking account drained unexpectedly by fraud, and the typical secured card customer has no other credit cards.
Now, it’s completely possible that no actual fraud will occur as a result of the Capital One breach: in a statement, Capital One said that, based on the analysis they’ve done so far, they consider it “unlikely that the information was used for fraud or disseminated by this individual.” If they’re wrong, the consequences for secured card customers will be severe.
In this moment of crisis, it’s worth taking a step back to ask a broader question: are secured cards more helpful or more harmful to the low-credit score consumers they’re designed to serve? These products are often touted as a way to help people improve their credit scores, but there is weak evidence that they work for the typical customer. Santucci’s research shows that the median customer with a secured card sees only a 11-point increase in their FICO after two years, a number that’s dragged down by the 20 percent of customers who close or default on their cards within 24 months. 11 points is not a particularly impressive increase, especially given that if you wait and do nothing other than paying any existing bills on time, your low credit score typically goes up on its own as negative information on your credit report ages off.
Banks can tout that secured cards are free for customers who pay their bills in full every month, but the three-quarters of customers who carry a revolving balance are paying a high price for the privilege of borrowing against their own money, and would arguably be better off using their security deposit as an emergency fund. I’m sympathetic to what can feel like a double-bind to the banks: given that you need to charge higher prices to low-income customers to break even, is it better to be accused of ignoring them, or is better to be accused of exploiting them? If companies like Capital One can’t find better ways of serving low-income Americans, it won’t just be a breach of data: it will a breach of trust.
TAGS banking credit cards Financial AccessИсточник: https://talkpoverty.org/2019/08/08/capital-one-breach-low-income/
How to upgrade a Capital One card
There are a lot of ways you can outgrow your credit card. Maybe you signed up for a student card or secured card, but you now have a better credit score and can qualify for something better. Maybe a card with a high annual fee no longer makes sense in your budget, and you are hoping for a no-fee alternative.
No matter the reason, you might be looking to apply for another credit card as the next step. But before you suffer a hit to your credit score by applying for a new card (or canceling one you don’t get much use out of anymore), consider another option. Most credit card issuers allow users to upgrade or downgrade their cards to another product with the bank. You’ll typically have to meet certain requirements to take advantage of this option, but you can easily switch to a better offer for your lifestyle without sacrificing points from your credit score.
Considering upgrading or downgrading a card with Capital One? Read on to learn more about how to start the process with the issuer and what eligibility requirements you’ll need to meet.
Upgrading a Capital One card
Capital One is one of the easiest card issuers to upgrade or downgrade a credit card with, as the bank frequently releases targeted offers for a product change. When you log in to your account, you might get a notification on the portal with offers targeted to you – which you are prequalified for.
If you don’t have a targeted offer, you still might qualify for a card upgrade or downgrade. You can call the customer service number on the back of your card to ask about your options, or you can log in to your online Capital One account.
Tip: Even if you have a good offer online, it is a good idea to call Capital One customer service to ask what you are eligible for before deciding to upgrade or downgrade your card. You might qualify for better offers than are available on the website.
Once you’ve found a new card that makes sense for you, you can complete the entire upgrade process either online or over the phone.
According to a customer service representative with Capital One, the issuer reviews your account regularly for product change offers. Your card offers are updated regularly, so continue to check back either online or over the phone to see if your desired card is available for upgrade or downgrade. If you have a different Capital One card you are hoping to qualify for, there are a few eligibility requirements to keep in mind:
How long you’ve had your current card
Capital One does not have a hard and fast rule for how long you must have one card open before you are eligible to upgrade or downgrade, but we estimate a good rule of thumb is at least six months of card ownership. While we found upgrade offers on younger accounts, six months is a solid period of time to demonstrate your reliability of making on-time payments to the bank.
The type of card you want
Unlike many card issuers, Capital One does allow customers to change from a cash back to a travel card or vice versa. For example, we found an offer to upgrade from the Capital One SavorOne Cash Rewards Credit Card to the Capital One VentureOne Rewards Credit Card. This is a huge perk in terms of flexibility, as you can likely switch to a different product that better suits your spending patterns.
To qualify for a good upgrade or downgrade offer with Capital One, you should first ensure that your account is in good standing. If you have a positive reputation of on-time payments with the bank, you are more likely to be allowed a product change.
Changes to your credit card
So what exactly happens when you upgrade or downgrade a card instead of applying for a new one? You’ll keep the same account – just with a new card – so the following things will stay the same:
- Your card number does not change, but your CVV and expiration date will change, so you’ll need to update any automatic payments.
- Your current rewards balance will carry over to your new card. If you switch from a card that offers cash back to one that offers miles, you will receive 100 miles for every dollar in cash back you’ve earned.
- Your credit limit and APR will also stay the same.
Keeping the same card number, credit limit and APR make it easy to manage your new card, as the following features will change when you upgrade or downgrade:
- Your rewards rate will change as reflected in the new card’s terms and conditions. You’ll start earning your updated rate within two to three business days.
- You won’t receive a new introductory offer or qualify for the new card’s intro APR (if applicable).
- If you downgrade from a card with an annual fee to one without a fee, you are responsible for any fee charged prior to the product change.
- You’ll receive a new card with the same card number, but updated card art, security code and expiration date within seven to 10 business days.
Benefits of upgrading or downgrading your card with Capital One
If your Capital One credit card is no longer suited to your needs, upgrading or downgrading to another Capital One product can be a great way to ensure you are still earning rewards that make sense for you without a hit to your credit score. When you upgrade or downgrade, you don’t have to close a card or fill out a new application, meaning you essentially get a new card with no hard pull on your credit and no negative impact on your average age of open accounts.
Plus, it is a great way to adjust how much you spend on credit cards each year. If you are paying an annual fee that is too expensive for your current budget – but you still like some of your card’s perks – you can often downgrade to a lower annual-fee version of the card.
One great example of this is the Capital One Savor Cash Rewards Credit Card*, which charges a $95 annual fee. For cardholders who still want to earn top-notch dining rewards, the SavorOne card offers a similar earning scheme without a high annual fee.
On the flip side, you can upgrade a card to take advantage of better benefits, and then you don’t have to worry about carrying a card you no longer have use for. For example, if you applied for the Capital One Platinum Credit Card as a way to build your credit score, but now qualify for one of Capital One’s many great rewards cards, you can change to a better rewards rate without having to close the Platinum.
Perhaps you want to upgrade to Capital One’s newest premium travel card, the Capital One Venture X Rewards Credit Card. The Venture X comes with up to $500 in annual credits and bonuses, plus a notable sign-up bonus. The Venture X currently offers 100,000 bonus miles for spending $10,000 on purchases in the first six months with the card. The spending requirement is hefty, but the reward is well justified as 100,000 miles can be redeemed for $1,000 in travel. The Capital One Venture X is the ideal credit card for people interested in premium travel credit cards, but with a price tag at less than $500 per year.
Tip: Our staff have had mixed results calling in to upgrade the Capital One Platinum Secured Credit Card. While one team member received an offer to upgrade to the Capital One Quicksilver Cash Rewards Credit Card, another was told her secured card would need to automatically upgrade to the unsecured Platinum card before she could request an upgrade to a rewards card. That’s why it’s important to communicate with the issuer and see what your options are. Every situation is unique, and you won’t know what you can get until you ask.
Additionally, there have been reports that you can only have two Capital One cards at a time, excluding the secured card and co-branded cards. While it’s unclear whether this is an official issuer policy or just a rule of thumb, upgrading your card can help you get the product that you want while keeping the number of cards under the limit.
Tips for making the most of your upgrade or downgrade
- If you are downgrading to a card with a smaller annual fee (or none at all), do so before the fee posts to avoid an extra charge.
- Check for prequalified offers regularly – either by phone or online – as Capital One evaluates your account on a regular basis.
- Make sure to read the new card’s terms and conditions carefully before accepting an upgrade or downgrade offer.
- Before applying for a new credit card, make sure you don’t have a product change offer from Capital One that will suit your needs. You might be able to avoid a new account and hard pull on your credit.
Popular Capital One credit cards
Upgrading or downgrading your credit card can be a great way to make sure you are still earning rewards that match your lifestyle, without suffering a hit to your credit score. Plus, Capital One’s process is very straightforward and easy to take advantage of.
While you won’t be able to enjoy the introductory bonus on your new card, you’ll maintain your account history and card number and start earning your new rewards in just a few days.
*All information about the Capital One Savor Cash Rewards Credit Card has been collected independently by CreditCards.com and has not been reviewed by the issuer. The offer is no longer available on our site.
The editorial content on this page is based solely on the objective assessment of our writers and is not driven by advertising dollars. It has not been provided or commissioned by the credit card issuers. However, we may receive compensation when you click on links to products from our partners.
Emily Sherman is a senior editor at CreditCards.com, focusing on product news and recommendations. She is also one of the founders of To Her Credit, a biweekly series of financial advice by women, for women. When she's not writing about credit cards, she's putting her own points and miles to use planning her next big vacation.
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Capital One Launches Quicksilver Secured Rewards Credit Card
If you're working on building your credit history, the new Capital One Quicksilver Secured Rewards Card could be worth a look. It can help you build a credit history and eventually graduate to the unsecured version of the card. The card was launched on Oct. 19 and is available for new applications. However, applicants who currently have bad credit may not be eligible.
- Capital One has launched a new secured 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 card use, cardholders can graduate to the unsecured Quicksilver Rewards card and get their deposit back.
Capital One Adds Another Credit-Building Option
Building credit can take a while, 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 every 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 as you work on establishing a positive credit history. There's no annual fee, and you'll need a security deposit of at least $200, which gives you a matching $200 credit limit. 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, you may be considered for an increased credit line without needing to put down an additional deposit.
Unlike other secured credit cards, though, 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 in the past five years or who has a limited credit history of three years or less.
This is 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 a $39 annual fee. While you'll need to put up a security deposit on the Quicksilver Secured card, there's no annual fee, and you can get your deposit back if you use the card responsibly.
Is the Quicksilver Secured Card Right for You?
One of the drawbacks of many secured credit cards is that you have to close your account to get your deposit money back. But closing a credit card account can have a negative impact on your credit score, and it also prevents you from using that account to continue to build your credit history. The age of your accounts is one of the factors used in determining your credit score.
Fortunately, more and more card issuers are giving cardholders the opportunity to upgrade to an unsecured card and get their deposit back without needing to close the account. This new card is the latest such option.
Although there are plenty of unsecured credit cards for consumers with fair credit, some charge annual fees or don't offer rewards. While an upfront security deposit can be a pain, it could be worth it if you want a solid cash-back credit card once you've built up your credit history sufficiently, 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 can be too much for some, so be sure to consider whether it would be a burden for you.