Banking and Finance

How to Close My Capital One Platinum Secured Credit Card

July 27, 2021

Did you know that roughly 8 in 10 credit cards are from major credit card issuers such as American Express, Bank of America, and Capital One? While Capital One is a popular credit card issuer for many people, sometimes you’re simply ready to move on.

If you have a Capital One Platinum Secured Credit Card, you may want to close it for several reasons. Maybe you're looking for a new card with better benefits, or maybe you've been approved for an unsecured credit card and would like to move your spending over. 

No matter the reason, we’re about to walk you through the steps to close your Capital One Platinum Secured Credit Card account without any issues.

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How Do Secured Credit Cards Help You Build Credit?

A secured credit card can be a great way to help build your credit, but how do they work? With a secured card, you put down a deposit as your credit limit. This means that if you default on your payments, the issuer can simply keep your deposit. Because of this, secured cards are generally easier to get than regular credit cards. 

And, since they report to the major credit bureaus, using a secured card responsibly can help improve your credit score over time. One thing to watch out for, though, is high fees. Some secured cards have annual fees or higher interest rates than unsecured cards, so be sure to compare offers before you apply. Used wisely, secured cards can be a helpful tool in building your credit history.

FAQ: What credit score do you need to qualify for a secured credit card? Typically, there is no credit check required which means you don’t need good credit (or any credit at all!).

What to Know About the Capital One Platinum Secured Credit Card

Now, if you’re interested in building credit or are already building credit with a secured card, how does the Capital One Platinum Secured card stand up against the rest? Here’s a brief breakdown of the basic fees and specifications of this secured card.

  • Annual Fee: $0
  • Late Fee: Up to $40
  • Foreign transaction fee: $0
  • APR: 28.49% variable rate. (Bank of America, US Bank, and Citi all offer secured credit cards with around a 26% to 27% APR)
  • Deposit: The minimum security deposit required can be $49, $99, or $200 to open your account, with an initial credit line of $200. 
  • Rewards: None

How Much Deposit Do I Need for a Credit Limit?

With secured credit cards, your minimum deposit is usually the amount of your credit limit. With the Capital One Platinum Secured credit card, that’s not the case. When applying for this card, depending on your financial situation and current credit score, you can pay a minimum deposit of $49, $99, or $200. 

Regardless of the minimum deposit, your starting credit limit will be $200.

How to Increase Your Capital One Credit Limit

Requesting a credit limit increase with Capital One is simple. First, make sure you have your total annual income, employment status, and monthly mortgage or rent payment handy. Then, go to the Capital One website and request a credit line increase. Once you've submitted your request, follow the directions to accept your new credit limit (if approved). That's all there is to it!

How to Close Your Capital One Platinum Secured Credit Card

If you have a Capital One Platinum Secured credit card, then you may be wondering, “What happens if I close my card?

While you need to ensure you’ve paid your balance, the only “negative” thing that could happen when closing a credit card account is that you lower your credit utilization ratio, which is the percentage of your available credit that you are using. A lower credit utilization ratio can be seen as a sign of financial stress, and it can lead to a lower credit score. So if you're thinking about closing a credit card, be aware that it could hurt your credit score.

Still sure you want to close the account? Okay then, there are two ways you can close your Capital One Platinum Secured credit card. 

  1. Call Capital One and ask for customer service. They will be able to tell you what the process is for closing your account. Generally speaking, they will want to know why you are closing the card, so be prepared to answer that question honestly. Once they have all of the information they need, they should be able to officially close your account. 
  1. Simply sign in to your Capital One account. On your dashboard, click on the card you want to close. Select "I Want To” from the dropdown menu and scroll to "Control Your Card.” Then, follow the directions under Close Account.

How to get your security deposit refunded 

When you close your account, Capital One should send you your deposit back. Typically, they’ll send them to you in the form of a check or refund the money directly to your bank account.

Better Ways to Build Credit

Getting an unsecured credit card is probably the best way to build credit responsibly over time without taking on too much debt. However, it’s relatively hard to get approved for a good credit card. Plus, you need a Social Security number, a good credit score, and more. 

A better way to build credit if you don’t have an SSN or have poor or no credit is to get a credit builder loan. These loans help you save while you build credit, and by making regular payments on a credit builder loan, you can demonstrate your creditworthiness to lenders and improve your chances of getting approved for future loans. 

Additionally, credit builder loans typically have lower interest rates than secured credit cards, making them a more affordable option for building credit. Finally, credit builder loans can help you build a stronger credit history by allowing you to establish a longer payment history than with a secured credit card. 

Start Building Credit With Cheese

Ready to put your credit-building efforts on autopilot? We’re ready to help! With Cheese, you’re able to enjoy:

  • No credit check
  • No admin fees
  • Custom credit builder plans
  • MORE!

How does it work? Simply apply for a credit builder loan of as little as $500 (which is also your savings goal). Choose a term length of 12 or 24 months depending on your needs. Use our autosave feature, and we’ll take care of the rest! As long as you make on-time payments, you’ll be building a great credit history little by little over time. At the end of the 12 or 24 months, you can get your money back, minus the interest.

Ready to get started? Sign up here.