The Guaranteed Secured Mastercard is Capital One's third guaranteed-approval credit card. This card carries an annual fee of $59 and an annual interest rate of 19.8% on purchases, balance transfers, and cash advances.
The Guaranteed Secured Mastercard is quite similar to the standard Guaranteed Mastercard and the low-rate version of the same card. Like its counterparts, applicants for this card must have reached the age of majority in their province or territory and not applied for a different Capital One account in the 30 days preceding the application for this card. The applicant also must not have an existing Capital One account. The difference comes with respect to the fourth criteria regarding past Capital One accounts not in good standing. While both the standard and low-rate versions of Capital One's Guaranteed Mastercard require the applicant not have had a delinquent Capital One account in the year preceding application for the card, this card does not. This card, instead, replaces that requirement with the requirement that cardholders provide security funds as collateral, thereby providing access to a credit card even for customers with a past account delinquency in their credit history. After an applicant has been approved for this card, he or she will send Capital One either $75 or $300, which Capital One will hold as collateral on the account.
The bottom line: This card is specifically designed for Canadians who have had a delinquent Capital One account in the year preceding application for this card. Recognizing that everyone can experience financial hardship from time to time, Capital One offers this card as a useful and convenient way to rebuild damaged credit. While an account delinquency can result in an applicant's immediate rejection by other credit card companies, this card provides a way for cardholders to get their finances back on track along with several additional benefits, all with the backing, technology, and resources of a major international financial institution