Overall rating
First year value
$0
Get this card if you:
- want to earn rewards for paying down your balance
- value comprehensive insurance benefits
- have a fair credit score
Scores by category
Rewards 2.5
Travel 2.0
No Annual Fee 1.2
At a glance
The Capital One Smart Rewards Mastercard is a no-annual-fee credit card that rewards cardholders with points for making payments toward their balance, rather than for spending. This unique structure encourages responsible financial habits, though the rewards program may offer lower value compared to other cards.
Highlights
Interest Rates
21.9%
Purchase APR
21.9%
Balance transfer APR
21.9%
Cash advance APR
Eligibility
Fair
Recommended credit score
Quick overview
The Capital One Smart Rewards Mastercard is a distinctive credit card. The unorthodox approach to earning points promotes healthy credit habits, especially for those tempted to spend. Rather than earning rewards when spending, you earn points when paying your balance.
Ultimately, this card has a unique offering. While lacking on the rewards frontier, insurance coverage is surprisingly strong for a no-fee card. Its unorthodox approach to earning points promotes consistent payments.
Who's the Capital One Smart Rewards Mastercard for?
- People who need reminders to make payments: The Capital One Smart Rewards Mastercard is right if you need an added push to make payments. This no-fee card promotes healthy financial habits, rewarding you for payments rather than spending. The mindset of keeping a low balance also helps you build a great credit score.
- Further insurance coverage sweetens the deal for credit-conscious travellers.
- Canadians new to credit card rewards: While this card isn’t for rewards maximalists, it does cater to a niche audience. It’s a solid entry-level option for those who value travel insurance coverage more than rewards. It’s especially useful for young adults learning responsible financial behaviour.
Pros and cons
Pros
-
No annual fee
-
Earns five points per dollar paid towards the balance
-
Points don’t expire
-
Pre-approval without impacting credit score
-
Travel assistance and Mastercard Global Service
-
Strong insurance coverage (common carrier, baggage delay, rental car, purchase assurance, and extended warranty)
-
Price protection service
-
Zero liability for unauthorized purchases
Cons
-
Low rewards earn rate (0.67%)
-
Slightly higher interest rate (21.9%)
-
Price protection is capped at $500 per year
-
Limited to Capital One's redemption options
Capital One Smart Rewards Mastercard welcome bonus
The Capital One Smart Rewards Mastercard doesn't provide a welcome bonus.
ℹ️ Capital One Smart Rewards Mastercard key benefits
- Reward points for payments: Earns five points for every dollar paid towards the card balance, promoting timely payments and financial responsibility.
- No annual fee: Ideal for those seeking a cost-effective credit card option without additional yearly charges.
- Strong insurance coverage: Offers purchase assurance, extended warranty, and car rental collision/loss damage waiver, providing added security on purchases and rentals.
Capital One Smart Rewards Mastercard insurance coverage
Extra benefits
- Price protection service: If an item bought with the card goes on sale within 60 days, the price difference is reimbursed up to $100 per item, capped at $500 per year.
- Travel assistance: Offers 24/7 support for emergencies during travel, including medical referrals and lost luggage assistance.
- Mastercard global service: Provides emergency card replacement and cash advance, along with 24/7 telephone access and ATM referrals in case of lost or stolen cards.
- Zero liability: Protection against unauthorized card charges.
Mentioning the 5x points as a highlight is meaningless unless we know what a point is worth.
coolintheshade
💳 How the Capital One Smart Rewards Mastercard compares
Is the Capital One Smart Rewards Mastercard worth it?
The Capital One Smart Rewards Mastercard is worth it for those looking for a no-fee card with solid insurance perks. While the rewards potential is lacklustre, the extensive coverage can offset costly travel incidents. The unorthodox method of earning points with balance payments also helps promote healthy financial habits.
Read: Best Capital One credit cards in Canada
Eligibility requirements
- Must be of the age of majority in the province or territory in ehich you reside
- Must be 18 years of age or older
- Fair credit score
FAQs
Daniel is an expert on travel, finance, and SEO. He received an Honours BBA (Finance) from Wilfrid Laurier University, then started his career with WOWA. Here, he learned various SEO tactics that were instrumental in quadrupling monthly traffic to one million views. Now the founder of Croton Content, Daniel helps financial companies scale through evergreen content. Aside from Money Wise, notable clients include Forbes Advisor, WealthRocket, and Hardbacon. Daniel loves to travel when not working. Although based out of Lisbon, Portugal, some of his most adventurous destinations include Rio, Cairo, and Istanbul.
Explore the latest articles
KOHO or Stack?
Start-ups like KOHO and Stack have burst onto the scene to provide a new payment option in the form of prepaid cards. Find out which is right for you!
Disclaimer
The content provided on Money.ca is information to help users become financially literate. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter. Advertisers are not responsible for the content of this site, including any editorials or reviews that may appear on this site. For complete and current information on any advertiser product, please visit their website.
†Terms and Conditions apply.