I "damaged" my credit approx 6 years ago (late payments and two accounts gone to collections), two years ago I started making efforts to ensure that I would have positive credit entries already in place when the negative stuff fell off my credit reports.

I first obtained a Horizon Plus secured card, and figuring that two credit lines were better than one and 6 months later applied for the Capital One secured card (this is when they were just offering one card, and they didn't have the rewards options with secured cards).

I was approved for a $750 limit with a $75 deposit. I happily sent in my deposit and used the card sparingly when it arrived. After having the card for 7 months Capital One automatically raised my limit by $1000.

Time has passed. I have paid my $59.00 annual fee twice now and naturally the secured card is looking pretty ugly compared to the unsecured no-fee rewards cards I've acquired recently.

I've called Capital One and asked about converting the card into one of their other (unsecured) cards and have been told (on two seperate occasions) that they CANNOT do that. The best they can do is cancel the card (with a 60 day waiting period to ensure no further transactions are processed) and after 6 months I can re-apply for a new card.

Hardly perfect. I'll be holding on to the card for the remainder of the year (after all I've already paid the fee). Before the next annual fee comes due I will try to reason with them one last time, and if all else fails I will cancel the card.

I will not be reapplying for an unsecured card.