- Platinum Member
- Posts: 88
- Joined: Thu Aug 02, 2012 1:18 am
- Location: Nebraska
Capital One starts you off with a credit line of $200, so for your $99 you get a credit limit of $200, so for $125 you should get $226. If you always pay on time, don't go over your limit and such, Capital One has been known to give small increases to the credit limit without requiring additional deposits.
Capital One is a major well known and respected bank and they will report on your credit. Capital One has been known to approve people when other banks won't and the only downside is they don't have any products to grow with. From what I've seen, I don't think there is such a thing as a good deal on a secured card but I would say starting off with a $200 credit line for $99 down is a good deal. I don't think anyone else does that.
With a $200 credit limit, I wouldn't charge more than maybe $65. Your credit score doesn't care what your limit is, just how much of your available credit you are using. Maybe the best thing about Capital One, they don't report the account as "secured" so it looks to other lenders like you have a regular line of credit. So if Capital One starts you off with $226 then gives you a $100 increase and you add $500 of your own money, it will look like you have an unsecured line of $826.
The good news is you don't have to charge everything you buy to build credit, in fact for some of us, it's bad advice. Instead, use it at Burger King to buy a whooper then put the card away. Be sure to pay the bill on time. Your card was activated and used once, now it's going to report as an open account in good standing, in theory charging $10 every 3 months or so will do the same for your credit as charging $50 every month.