Capital One Secured Card - The Application
Jul 03 '02
The Bottom Line Secured cards can help rebuild credit.
I'm sure you've received the application in the mail. Actually you've probably received tons of them in the mail. All informing you of the fact that you have been pre-approved for a Capital One credit card.
Do the happy dance.
Are you finished now?
Okay, let's get down to business.
Chances are, if you have any blotches on your credit report, this card offer will involve a Capital One Secured Card.
Notice that I moved my bold html tags. These tags are no longer emphasizing Capital One, but are around the Secured Card phrase. This movement on the part of the html tags means - Pay Attention.
Secured cards can be an important part of rebuilding your credit after small incidents here and there have dented your credit rating. Also after large incidents have completely totaled your credit rating. However, you also must pay very close attention. Be careful in choosing which card, and make sure you are aware of the responsibilities that come with such a card.
A secured card indicates there is some amount of money on deposit with the card issuer held against the card. Capital One uses several different types of deposit and ratios; the amount will differ according to the sales pitch at the time. One way is to send a sum of money to Capital One. A more recent way is to have Capital One charge the amount of your deposit to the new credit card. This sum of money is placed into a savings account in your name. You will also receive a security account number. If the amount is more than $99 you will also receive interest on this account.
First, let's look at the letter you've received and the enclosed application. The letter will state that you are either approved or guaranteed for a card. It will also say approved or guaranteed for a certain credit limit. There is a difference between approved and guaranteed. Approved means that your name was on the marketing list. It does not mean that you will receive a credit card. If you return the completed application a credit check will be performed at that time.
If your name shows up on the hot list - a list of names that are laughed out of the Applications Dept. - you will not receive a card. As a matter of fact, you must submit a request to receive your deposit back. If you do not do so within the next year, the deposit will be turned over to the State Dept of the state listed as your legal residence on the application. You would then have to make that request to the State Dept.
Good luck!
Guaranteed means simply that. You are guaranteed a card. The same goes for the credit limit. If the letter stipulates a guaranteed credit limit, then that is exactly the amount you will receive. Approved means approved up to a certain limit. That decision will be made at the time your credit report is updated.
Also included in the envelope containing your application will be a W8/W9 Form. This form asks for your taxpayer information - whether or not you are a US citizen, if you are required to submit certain forms when filing your tax information each year, and your social security number. It also requires your signature. Do not forget to sign this form and send it in along with your application and deposit. Notice those html tags again. This is a required part of your application. Without this form you will not be issued a secured credit card.
Now the deposit. If the application requires you to send in the deposit through the mail, that is exactly what it requires. You may not use Western Union or Moneygram. You may not hand deliver it to Capital One. You may not use check-by-phone. You must use the Postal Service to send in your deposit. End of story.
However, there are options when considering the actual form of money you send. Yes, you may send your deposit in the form of a personal check. Please add 15 days onto the processing time when doing so. Capital One will clear the check with your bank, using the US Postal Service, before issuing your card. If the check goes astray in the mail, you will have to stop payment on this check at your bank. Capital One does not hold itself responsible for any fees incurred at this time. If you find that Capital One has cashed your check without crediting your funds to your account, you will need to send in a written request along with a copy of the front and back of said check. Capital One will then place the matter under investigation.
Or, you may send your money in via a money order. Please retain your carbons as; if this payment goes astray in the mail, you will need to pursue the matter with the company whom issued the money order. Capital One will not track your money order for you. If you do find that Capital One has cashed your money order without crediting your funds to your account, you will need to send in a written request along with a copy of the front and back of said money order. Capital One will then place the matter under investigation.
Once Capital One has received your application, W8/W9, and your cleared deposit, they will issue your credit card number. At this point your actual credit card will be ordered and made, then mailed out.
The timeframe given in the letter for processing and receiving your card will be about three weeks. However, reality is that most of the time you can depend on up to a two-month wait.
Prop your feet up. Sip some iced tea. Watch the grass grow.
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