Capital One® Guaranteed Mastercard review

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Overall rating

First year value

$0

Get this card if you:

  • looking to improve your credit score
  • value purchase protection and extended warranty coverage
  • want to enjoy the convenience and security of a Mastercard

Scores by category

No Annual Fee 2.6

At a glance

The Capital One® Guaranteed Mastercard® is designed for individuals with less-than-perfect credit histories, offering guaranteed approval (subject to conditions) and the opportunity to rebuild credit. Depending on the applicant's credit profile, approval may be for an unsecured card or a secured version requiring a security deposit; both versions provide benefits such as purchase protection and extended warranty coverage.

Highlights

$59

Annual fee

No annual fee

Interest Rates

21.9%

Purchase APR

21.9%

Balance transfer APR

21.9%

Cash advance APR

Eligibility

Poor

Recommended credit score

Quick overview of the Capital One® Guaranteed Mastercard

Virtually every time we apply for a credit card, we run the risk of not only being rejected, but of our credit score taking a hit as well. This is a gamble for those that already have lower credit scores and are looking to build them up.

The Capital One® Guaranteed Mastercard is a good option for those who don’t have a stellar financial history and are looking to improve their credit without paying an exorbitant annual fee. Some applicants with higher credit scores will be offered an unsecured version of the card, while those with weaker credit will be referred to the Capital One® Guaranteed Secured Mastercard. There are few practical differences between the two, aside from the fact that cardholders of the latter need to provide security funds, and cardholders of the former do not.  

Enter ‘Guaranteed Approval’ cards, like the Capital One® Guaranteed Mastercard. Those who need access to credit but who also have a poor credit score (or exhibit a history of bankruptcies or consumer proposals) will appreciate guaranteed approval.

Cardholders are guaranteed to be approved for at least one version of the card as long as they meet these basic requirements:

  • They’re the age of majority in their province or territory of residence.
  • They don’t already have a Capital One account/product or a pending application for a Capital One® account/product.
  • They haven’t applied for a Capital One account/product in the 30 days prior to their application for the Capital One® Guaranteed Mastercard.
  • They can provide the security funds required *in the event that they’re approved for the secured rather than unsecured version of the card.

Who's this Capital One Guaranteed Mastercard for?

  • Anyone with damaged credit: The Capital One® Guaranteed Mastercard is a good option for those who don’t have a stellar financial history and are looking to improve their credit without paying an exorbitant annual fee.
  • Canadians new to credit: With effortless approval, a competitive balance transfer and purchase rate, plus some special perks, the guaranteed approval of the Capitol One® Gold Mastercard® is one of the most comprehensive lower-tier credit cards around.

Pros and cons of the Capital One Guaranteed Mastercard

Pros

Pros

  • Guaranteed approval for rebuilding credit

  • Option for an unsecured version for some applicants

  • $59 annual fee, with potential for a lower rate on unsecured card

  • Additional benefits like Price Protection and extended warranties

  • Travel benefits for unsecured cardholders

  • Mastercard's Zero Liability and 24/7 customer service

Cons

Cons

  • $59 annual fee may be higher than some secured cards

  • 19.80% interest rate on purchases, balance transfers, and cash advances

  • Extra features available only on unsecured cards

  • Limited benefits compared to premium credit cards

  • Secured card requires security funds between $75 and $300

  • Consideration needed for the slightly more expensive low-rate version

Capital One® Guaranteed Mastercard welcome bonus

The Capital One® Guaranteed Mastercard does not offer any welcome bonus.

Does the Capital One® Guaranteed Mastercard offer rewards?

No. The card does not earn cash back or points on purchases. Instead, it gives Canadians with limited credit history or damaged credit history a chance at establishing a strong credit history with on-time payments and responsible credit use. And that is reward enough in our books.

Key features breakdown of the Guaranteed Mastercard from Capital One Canada

  • $59 annual fee
  • Guaranteed approval (conditions apply)
  • Establish and repair credit
  • Mastercard benefits including Zero Liability

How does Capital One pre-approval work?

Capital One Canada's Quick Check® uses some basic personal and financial information to see if you qualify for one of its credit cards. Capital One then uses your information to see if you qualify so you can be sure when you apply.

When you submit your pre-approval application, there is no impact to your credit score. This known as a "soft inquiry," although applying for a card once pre-approved will trigger a "hard inquiry," which will ding your credit score slightly.

Here's what information you'll need to use the Quick Check® tool:

  • Full name
  • Contact address & phone number
  • Email address
  • Social Insurance Number (SIN)
  • Employment information
  • Income

Capital One® Guaranteed Mastercard insurance coverage

Protection
Coverage
Extended warranty
This policy helps cardholders cover their new purchases against damage and theft for 120 days, and lengthen original manufacturer warranties by up to two years.
Price protection
This gives cardholders a 60-day window of time after their purchases, during which they can request reimbursement for the difference between what they paid for an item vs. a lower price that they see for the same item with another vendor.
Common carrier travel accident insurance
This policy provides $250,000of coverage in case of accidental loss of life or dismemberment while on a common carrier.
Baggage delay insurance
et reimbursed on your lost or delayed luggage for up to $300 total when you purchase your trip on your card.
Car rental collision/loss damage waiver
This car rental insurance can be used to waive the insurance policy of the car rental company and provide coverage for up to 31 days, with a maximum of $75,000.

Extra benefits

Enjoy 24/7 travel assistance (essentially an emergency concierge), Mastercard’s Zero Liability feature and 24/7 customer service.

This Reddit user explains how their credit score immediately started improving with the Capital One Guaranteed Mastercard, showing how fast your credit score can jump when you smartly use your secured credit card. Best of all, this credit card reports to major credit unions which is a huge bonus.

I had a credit score just over 600 and I gave them $75 for a $2500 credit limit. The next credit reporting period my credit jumped up to almost 650 before I had even made a first payment on the card.

/u/MGCanada

Capital One Guaranteed Mastercard compared

Capital One Guaranteed Mastercard vs. Home Trust Secured Visa Card

$0

First Year Value

$0

Annual Value

Learn More Apply Now On Home Trust's Secure Site

The Home Trust Secured Visa is a great option if you want to rebuild your credit without paying an annual fee. This card comes with a highly flexible credit limit (ranging from $500 to $10,000) and a foreign transaction fee of only2.5%.  In comparison, the Capital One Guaranteed Secured MasterCard has a $59 annual fee but offers a lower initial security deposit of 500, which is low compared to other secured cards. The Capital One® Guaranteed Mastercard also provides good insurance coverage, which is rare for a secured card.

Capital One Guaranteed Mastercard Home Trust Secured Visa Card
Card type:
Unsecured
Card type:
Secured
Annual fee:
$59
Annual fee:
$0
Interest rates:
Purchases: 21.9%
Transfers: 21.9%
Advances: 21.9%
Interest rates:
Purchases: [19.99%
Transfers: 19.99%
Advances: 19.99
Read Review Apply Now

:

$153

First Year Value

$0

Annual Value

Learn More Apply Now On Neo's Secure Site

When comparing the two cards, it is clear that the Neo Secured Credit Card presents greater flexibility through its lower deposit requirement and the additional perk of cash back rewards. However, Capital One's card may be preferable for individuals seeking a card that reports to multiple credit bureaus, as the Neo Secured Credit Card only reports to TransUnion.

Card Capital One Guaranteed Mastercard Neo Secured Mastercard
Benefits ● Low credit score requirements

● 24/7 travel concierge services

● Comprehensive insurance coverage
● Enjoy high cash back rates on first purchases with select Neo partners including Amazon, Canadian Tire, Loblaws and Netflix (see all partners in the Neo app)

● Low minimum security deposit (as low as $50)
Insurance coverage Purchase protection, extended warranty, car rental collision/loss damage waiver insurance, baggage delay insurance, common carrier accidental insurance Purchase protection, extended warranty, group life insurance
Interest rates ● Purchase APR: 21.9%

● Cash Advance APR: 21.9%

● Balance Transfer Rate: 21.9%
● Variable APR: 19.99% - 29.99%

● Cash Advance APR: 22.99% - 31.99% (Plus a $2.50 fee in Canada, $5 fee anywhere else)
Read review You are reading it! Neo Secured Mastercard review
Apply Now Apply Now Apply Now

Disclosures:

  • Neo Credit and Neo Secured Credit cards are issued by Neo Financial™ pursuant to license by Mastercard International Incorporated.

Tips for building credit

Tip
Explained
Check your credit score
You might already know your credit score is bad, but how bad is it Knowing how fast you can improve your credit from “bad” to “fair” is crucial to making a financial plan of attack.
Pay on time each month
Payment history is the biggest factor in your credit score. Because this factor is important, paying your credit card bill on time each month is critical to boosting bad credit or no credit history. 
Keep your credit use low
Credit utilization is as important as paying on time. Credit utilization shows lenders how you use your credit. If you keep your overall  credit use below 30% and always pay on time, you can expect your credit health to improve, while those who use less than 10% can expect a much faster score rise.

Is the Capital One® Guaranteed Mastercard worth it?

If you have poor credit and you want to rebuild your credit score, the Capital One® Guaranteed Mastercard can help you achieve that and also give you good insurance coverage.

Eligibility requirements

  • Must be a Canadian resident
  • Must be of the age of majority in your province or territory 
  • No credit history/ Fair credit

  • Annual fee: $59
  • Purchase APR: 21.9%
  • Cash advance APR: 21.9%
  • Balance transfer APR: 21.9%
  • Foreign transaction fee: 2.5% of the transaction in CDN

FAQs

  • Can I build credit with the Capital One Guaranteed Mastercard?

    +

    Yes. The card is ideal for anyone newer to credit, or anyone bouncing back from financial hardships and credit over usage.

  • What is the credit limit for guaranteed Mastercard?

    +

    The credit limit starts at $300 and can rise to as much as $7,00 according to reports.

  • Can I have two Capital One credit cards?

    +

    Yes.

  • Is Capital One a good credit cards?

    +

    Yes. Capital One Canada has over 25 years experience in providing Candians a robust variety of credit cards for all credit profiles.

  • What happened to the Capital One Low Rate Guaranteed Mastercard?

    +

    The Capital One Low Rate Guaranteed Mastercard credit card is no longer available to new applicants. Instead, interested Canadians should consider the Guaranteed Mastercard or the secured Capital ONE Secured Guaranteed Mastercard

Scott Birke Content editor, Money.ca

Scott Birke is a financial content editor at Money.ca.

Cory Santos Credit card expert

Cory Santos is a finance writer, editor and credit card expert with nearly a decade of experience in personal finance. Cory joined Wise Publishing from BestCards, with bylines in numerous print and digital publications across North America, including the Miami Herald, St. Louis Post-Dispatch, Debt.ca, AOL, MSN and Medium as well as financial podcasts like KOFE Talk.

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