I have had a terrific experience with the Cap One secured.
After a three months with the secured card, they gave me a limit increase without additonal deposit. After only six months, they approved me for a rewards card with a $2500 limit/one year 0%. During this time nothing much changed on my credit report except time passed and I had established a record with CapOne- using and paying regularly on a credit card from them carries a lot of weight with them. I think that is an advantage, if you anticipate a long period of time to get all the baddies off your CR. I agree it is diappointing that their secured cards don't graduate, but I'm not a frequent app'er in the best of times, so one HP is a non-issue for me.
These cards have made a huge impact on my credit scores (+100 pts) and credit worthiness in the past year and only cost me 2 hard pulls - that's a good deal in my book. Of course, YMMV as my biggest issue scorewise is I had gone 'off the grid" for years and having any current credit lines open had a bigger impact on my score.
Starting Score: 523 TU: 3/15/2012Hub,
I had opened the CapOne secured and an Open Sky secured (both @ $500 level) at the same time. I did also end up having to get a car loan during this same time period in an unplanned emergency situation. Despite a 523 score and several collections and charge offs in my history was given a loan through CarMax, which shocked me. I don't know if that trade line was much of a factor for CapOne, since there was little payment history and the added new debt likely counter balanced that.
I used my CapOne secured a lot, paying in full every month before the billing cycle, which I like to think made them feel comfortable that I could manage my credit. The Open Sky I may have used a couple times for very small purchases, just to have activity and the open trade line. I don't really like this card or their site/service, but I wasn't in a position to be picky and it served it's purpose of giving me some recent history and helping my utilization while I paid off collections and old debts.
When I was in your position I aimed for 2-3 secured lines (though I ended up with a car loan instead of a third), my thinking was that another card might be helpful in moving to unsecured - as in balancing more than one credit line is more indicative of spending discipline.
I don't mind that this card won't graduate to an unsecured card, tbh. The fact that I can get a card is good for me since this is primarily for rebuilding only. The fact there's an android app that works well is a bonus for me and I figured since I have a capone360 account already it shouldn't be an issue getting the capone secured mastercard.
My other issue is that, prior to applying, a few years ago I had switched banks (Citizens Bank to BoA) then I found out about other banks/credit unions that I wanted to apply to since I hated the fees these major banks have. Because I, abruptly, left citizens...I had a balance that has never been paid and that has been an obstacle in applying for account at other credit unions/banks. Since I had (what was then, ING) before all this happened, my account has been in good standing and since the merger I had hoped it meant I'd be in good standing with CapOne since it now meant that I'm a current customer.
I plan to rebuild to for the next 8-10mo. but I'm not sure what the "rules" are to staying in good standing. The last time I had a credit card I thought that paying your balance in full as long as it was under your line of credit was considered being a good customer. In just a year my credit line decreased dramatically (Gap Card) to the point where I didn't want to deal with it anymore and I just closed it.
If my score increases to the 600 range I may apply for another secured card, one that graduates to an unsecured card but right now I "think" that this may be the best choice for me to get started.
Starting Score: 525