TL;DR: If you’re looking to rebuild your credit with a secured credit card, then this card is a great choice. It has no annual fee, and even allows for the possibility of having a higher credit limit than your security deposit. This card also has some great benefits such as no FX fees, car rental insurance, and extended warranty.

Secured credit cards are designed for people who the banks consider to be the riskiest borrowers based on their credit score.

Unlike a prepaid card, a secured credit card reports to the major credit bureaus. This gives you the opportunity to build your credit with responsible use.

The Capital One secured credit card is one of our favorite secured cards. This is one of only a few secured credit cards that does not charge an annual fee. Even more exciting, it is also one of the few secured credit cards whose spending limit can be higher than the amount of your security deposit.

This secured credit card requires a $49, $99 or $200 refundable deposit based on your credit score.

As soon as you make your deposit you will get access to a $200 credit limit on the card.

A great benefit of this card is that after five on time payments your credit limit will get increased – without having to make additional security deposits!

One thing to note about the security deposit is that you cannot use it to pay a balance, but you will get it back if you close your account as long as your balances are paid off.

The Capital One Secured Mastercard offers some solid benefits. We were actually a little surprised by this since this card it meant to help people get their foot in the door of the credit card world. The benefits are an amazing bonus!

Our favorite benefits include:

• No Foreign Exchange Fees. This is a key feature when you travel outside of your country. If you’re charging a foreign currency to your standard credit card, it would cost you over 2% extra for the currency conversion. With no FX fees on this secured mastercard, you only pay what the banks pay to convert your currency.

• Car Rental Collision Damage. This coverage applies when you charge the full cost of a car rental on this card. This insurance coverage will pay for most physical damage as well as theft for your rental vehicle.

• Extended Warranty. This benefit is automatically applied to any item you purchase on your credit card. The extended warranty doubles the original manufacturer warranty up to a maximum of twelve months on most items you purchase.

For a full list of the Capital One Secured Mastercard benefits click here.