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Capital_One_Secured_Credit_Cards__Good_Choice_For_Bad_Credit

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					Capital One Secured Credit Cards: Good Choice For Bad Credit

Word Count:
621

Summary:
Never mind the story behind the name. There's an obvious reason it's
called Capital One, and one of them is that it's the credit card of
choice for people with huge need for capital.

Since its creation in 1995, Capital One has become a successful financial
service provider. The global company maintains operations in various
countries. Forbes Magazine lists Capital One as one of the 100 Best
Companies to Work For. And why not? Capital One offers an array of
financial servic...


Keywords:
capital one secured credit cards, capital one secured credit card


Article Body:
Never mind the story behind the name. There's an obvious reason it's
called Capital One, and one of them is that it's the credit card of
choice for people with huge need for capital.

Since its creation in 1995, Capital One has become a successful financial
service provider. The global company maintains operations in various
countries. Forbes Magazine lists Capital One as one of the 100 Best
Companies to Work For. And why not? Capital One offers an array of
financial services, including home, auto, and personal loans; financing
for dental, medical, and cosmetic procedures; and various banking
services. Furthermore, the company provides a line of credit cards touted
as the perfect fit for people with bad credit: Capital One secured credit
cards.

Secured vs. Unsecured
A secured credit card is one that requires an applicant to submit a
security deposit. If you have bad credit or none at all, odds are you can
only get approval for a secured credit card, or an unsecured credit card
with high interest rates and fees.

Should you feel insulted about being asked to put up a security deposit
before you can get a plastic? You could, but this would be a waste of
time. After all, there are many credit card companies that will readily
offer you credit cards, but these come with steep initiation,
registration, monthly, and annual fees. So if you have bad credit, it
makes more sense to send in a deposit to secure one of the Capital One
secured credit cards.

Advantages of a Secured Credit Card
In addition to saving money by obtaining a Capital One secured credit
card, you could also get money back, in the form of your deposit. Just be
sure to follow your payment agreement with the company, and avoid
defaulting on the account. Furthermore, by establishing credit with a top
credit company, you are improving your chances of being offered an
unsecured credit card later on. You see, if you pay off your dues
religiously, you are already building good credit history. Your credit
score improves every time positive payment history is reported to one or
all of the major credit bureaus.

Applying for Secured Credit Cards
While secured credit cards have their advantages, it is wise to apply
for a Capital One secured credit card first before getting a secured
card. This is because the steps involved in applying for Capital One
secured credit cards vary only slightly from those required of applicants
for secured credit.

Credit Limits
If you get a secured credit card, your credit limit will be based on how
much you deposit into your secured account. Capital One secured credit
cards’ initial credit limit is $400. You might find this sum laughable.
After all, it's not enough to pay for a new car or roundtrip tickets to
Timbuktu. But remember that Rome was not built in a day. Likewise,
rebuilding bad credit takes time, and is an activity best done step by
patient step.

Making the Secured Credit Card Temporary
Capital One secured credit card is one of the few options left to people
with bad credit. So, be always mindful that you don't exceed your credit
limit. Where credit scores are concerned, the magic number is 750. If
your credit score reaches that value, you can be approved quickly for
credit cards, auto loans, and mortgages. In addition, the American
Congress has passed the Fair Credit Reporting Act. The law standardizes
the collection, using, and sharing of consumer credit data. This provides
help in turning bad credit into good credit.

Everyone deserves a second chance, and the Capital One secured Credit
cards offers exactly that to people with bad credit. Don't waste second
chances. There might not be a third one.