Capital One bring secured credit cards to the UK

capital one bank©

CAPITAL One have launched a secured credit card, the UK's first.

The deals have been popular in the US for a while but the jury's still out on whether they're a welcome addition to the UK market.

To activate a secured credit card users need to provide a security sum or deposit payment. It's hardly initially attractive and, indeed, up until recently the Capital One Secured Credit Card was an 'invitation only' card, offered only to those applicants that had been refused other offers.

How does it work?

Once the security sum has been paid, secured deals work just like any other credit card: they can be used to make purchases up to the credit limit.

However, since interest rates are high and limits very small, it's best to repay the balance in full.

By using the credit card and paying off the balance immediately on a regular basis, cardholders are able to demonstrate that they can manage their money and credit responsibility.

Once they have been a secured card holder for a while, it's possible that the card provider will upgrade them to a 'better' card.

A guaranteed credit card?

However, note that secured cards are certainly not guaranteed credit cards.

Applicants will be subject to a credit check - just as with any other credit card - and although those with poor histories may be accepted, it's up to the provider to decide.

Those that have been declared bankrupt within the past 12 months are not likely to be accepted to Capital One, for example.

As we've covered before, there is no way to guarantee acceptance for any credit card so if it looks too good to be true, it probably is.

Sizing up secured

So secured credit cards are, in some ways, not very different from other bad credit options. What sets them apart?

Secured vs. 'bad credit'

Bad credit or credit builder cards offer similar benefits to cardholders as the secured credit card but they don't require a security sum or deposit payment.

For many, that's preferable.

Given that it's highly likely that those with a poor credit history will be in a precarious financial position, it feels fairer that they shouldn't have to pay out money in order to improve their standing, just demonstrate good behaviour.

Secured vs. prepaid

Perhaps the most similar thing we have to a secured card on the market already is the CashPlus prepaid card's credit builder facility, see our full article here.

Like a secured card, those that want to build credit pay up.

In the case of CashPlus, the payments show up as a 'completed loan' after 12 months but, unlike a secured card, card users will never see that money again when they close the account.

All in all, secured cards seem to plug the gap between prepaid cards and 'bad credit' credit cards, although we're not sure it's a gap that really needs to be plugged.


27 October 2015
Margaret Cabral

What if your new to the country and have no credit as a refugee coming from hell?

8 February 2014
Brian Cunningham

It must have been withdrawn then I had a secured card with Capital One around 2004 & 06-07.

11 June 2014

It's not been withdrawn because I applied for a Classic card got declined then got offered a Secured card but I need to pay £200 deposit for £200 limit.

26 July 2015

Same here mate. I just paid it and it's on the way. Just make small transactions and pay in full each month for 6 months. Then it doubles to £400 and so forth.

27 October 2015
Margaret Cabral

What is the Money on the Secured Card 200 to 1500 is what I heard depending what you put down as security deposit in pounds. I got old lap someone gave me from another country with travel plug. I will need to buy england laptop and a home computer for my work. Where is the best to buy P.C besides best place for Secured Credit Card since I doubt I will get a normal credit card with no credit here.

27 October 2015
Margaret Cabral

How is your secured credit card going with Capital One? What does a refugee coming from hell do will a bank give a credit card to a no credit person or offer the secured one?

12 February 2016

Well if your a refugee coming from a worn torn country surely applying for credit cards is the least of your problems. Besides you would need to have some form of credit history in this country and have been living here for a min of 3 years in most cases.

8 November 2015
Kathmandu Self Catering

When we get a new credit card we get about 50 credit points deducted from our overall credit score. What about for applying for this secured credit card? Do the credit agencies still deduct 50 points off our total credit score or the total credit score remains the same even if we have received this secured credit card? Your answers will be most welcome.

26 July 2013
Julian Hall

I'm trying to figure out how to apply for one of these cards, but I can't find any reference to them on Capital One's web site, and the call centre staff have apparently never heard of them either... has the product been withdrawn, or is it just really hard to acquire?

27 November 2014

I have one from Capital One UK, they turned me down for one then offered me the deposit one which is helped big on my credit file, but it is invitation by post only.

11 June 2014

You need to apply for a Classic card first, if you get declined you will most likely get offered their Secured card, or on their website click on check if I am eligible enter your details and it will tell you what card your likely to be accepted for, plus the Secured card will be shown.

» Read more of the latest news

» Search for more guides on money

Follow us or subscribe for FREE updates and special offers