Capital One secured card holders recently received a letter (below) informing them as of January 19th, 2016 they will no longer be able to add funds to their security deposit to increase their credit limit. They went on to say that if you want a higher limit you might be automatically selected for a credit limit increase based on your credit history and credit worthiness.
I don’t think Capital One offers a compelling secured credit card product, the reasons are clearly outlined in our detailed review of this card. It’s always an advantage to be able to add funds to increase your credit limit, Capital One are saying that the reason for this change is because they want to provide automatic credit limit increases and basically turned these changes into partially secured cards. The problem is that they could have done this without the removing the option of adding funds to increase your limit.
If you have bad credit and are considering a secured credit card, I’d strongly recommend you look at our list of the best secured credit cards so you don’t get slugged with high annual fees and other miscellaneous charges and extras.
Hat tip to Jeff L
