May 18, 2001 12:54 AM
4963 Views
My credit stinks.
I started out getting department store and gas credit cards when I turned 18. If I saw an application, I filled it out and I was approved! Great right?
Wrong. I got in way over my head, and 15 years later I still had not recovered from my bad credit ratings. I couldn't get any type of credit anywhere.
A friend told me me about Capital One®. I applied, and to my surprise, I was accepted and approved for a $500 credit line.
Capital One® is a secured credit card. That means that in order to receive credit, you send them a security deposit of $99. You may make this in one payment, or divide it up into smaller payments. This security deposit is held for you, drawing interest. You are not PAYING them for the card. If you get behind on your payments, the $99 and the interest it accrued may be used as a partial payment towards your balance. If after a length of time you wish to have your card unsecured, the $99 and interest will be mailed to you if you are approved for that.
The Annual Percentage Rate is a fixed rate of 19.8%. This is a little steep when you compare it to the 12% to 15% of most other credit cards, but it was worth it to me to have a chance of re-establishing my credit line. The Minimum Finance Charge for each billing period is a minimum of $0.50.
If you keep your account in good standing by making your payments on time and not going over your spending limit, the increases will come fast and automatically! You will not have to apply for a credit increase. The higher your credit line, the stronger your overall credit rating will become.
The minimum payment due is 3% of your outstanding balance, or $10, whichever is greater. I make it a point of always paying MORE than my minimum payment in order to keep finance charges at the lowest I can.
Capital One® really tries to help you re-establish your credit. They reward you for keeping your account in good standing, and they also penalize you if you either a) make a late payment or b) go over your credit limit. Both of these charge you a fee of $25.
I applied online for my credit card at https://capitalone.com . If a secured credit card is not for you, they have many others to choose from such as:
Platinum Card
Gold Card
College Student Card
High School Student Card
Small Business Card
Miles One Card
Visa® Buxx Card
I couldn't be happier with my Capital One card. Their customer service department is one of the best I have ever dealt with, and I am anxiously awaiting my credit line increase! It feels so good to have a major credit card, and no one ever has to know it is secured!
Annual Percentage Rate: A fixed rate of 19.8%
Grace Period: 25 days
Annual Membership Fee: $39 (taken from your credit balance)
Minimum Finance Charge: $0.50
Cash Advance Fee: 2.5% of the cash advance, not less than $2.50
