Capital One Guaranteed Secured Mastercard® review

Quick overview of the Capital One Guaranteed Secured Mastercard®

Nearly every time we apply for a credit card, we run the risk of our credit score also being affected. Enter ‘Guaranteed Approval’ cards, like the Capital One Guaranteed Secured Mastercard®, which guarantees applicants get one version of this card depending on their financial situation*.

It’s a good option for those who don’t have the best financial history and are looking to improve their credit without paying a high annual fee. 

Who's this card for?

• 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*.

Pros and cons

How does the Capital One Guaranteed Secured Mastercard® work?

The Guaranteed Secured Mastercard® operates like any other credit card with one difference: it requires a security deposit to open. The Guaranteed Secured Mastercard operates like any other credit card, but with one difference: it requires security funds to open, which helps act as collateral. Whatever amount you pay as your security deposit could then potentially serve as your credit line.

Capital One reports your payments to the credit bureaus regularly, meaning if you make your payments on time and keep your credit use low, you can then build your credit history and eventually apply to an unsecured credit card.

Read more: Best credit cards for fair credit Canada

Interest rates

Here's how interest rates stack up with the Capital One Guaranteed Secured Mastercard®:

• Purchase APR:  21.9% for Quebec; 29.9% for the rest of Canada
  
• Balance transfer APR: 21.9% for Quebec; 29.9% for the rest of Canada
  
• Cash advance APR: 21.9% for Quebec; 29.9% for the rest of Canada

Secured cards tend to have interest rates that are comparable to what an applicant with "fair" credit can expect, and this is due to the security deposit, which helps Capital One hedge their bets on your credit journey.

Tips for building credit

Building a positive credit history may seem daunting, but it doesn't have to be. Improving your credit requires consistency and a solid game plan. Here are 4 tips to help you boost your credit health:

• Never charge something to your credit card that you can't afford to pay back immediately
• Pay your statement balance in full when possible
• Keep your credit utilization below 30% of your overall credit
• Avoid applying for any new credit cards until your score improves

Key features of the Guaranteed Secured Mastercard

• $0 annual fee
• Guaranteed approval*
• Establish and repair credit
• Purchase, cash advance and balance transfer rate: 21.9% for Quebec; 29.9% for the rest of Canada
• Mastercard benefits including Zero Liability^†
• Everyday and Travel benefits

Capital One Guaranteed Secured Mastercard® coverage

Protection

Coverage

Extended Warranty

up to 2 years

Purchase Assurance

120 days

Rental Car Coverage

up to $65,000

Travel Accident

up to $250,000

Other benefits of the Capital One Guaranteed Secured Mastercard®

Price Protection 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. If a cardholder buys a set of speakers, for example, and 40 days later sees the same set for $50 less, they can be reimbursed for that $50 difference. In fact, they can be paid a per-item difference of up to $100, until a cardholder has been reimbursed $500 total annually. The next year, the cardholder will get another $500 cap of Price Protection. Purchase Assurance and Extended Warranties are added benefits that help cardholders cover their new purchases against damage and theft for 120 days, and lengthen original manufacturer warranties by up to two years.

Travel benefits for unsecured cardholders include common carrier travel accident insurance, as well as travel assistance (essentially an emergency concierge), coverage for delayed baggage and rental vehicle insurance. Regardless of which Guaranteed card an applicant is approved for, they’ll benefit from Mastercard’s Zero Liability^† feature and 24/7 customer service.

Capital One Guaranteed Secured Mastercard® vs. Neo Secured Mastercard

The Neo Secured Mastercard is another secured card to consider thanks to its lower annual fee, security deposit requirement and the ability to earn cash back rewards based on your Neo bank account (Neo Everyday Money).

Disclosures:

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

Is the Guaranteed Secured Mastercard worth it?

There are no real quick fixes when it comes to building (or rebuilding) credit, but a secured credit card is a great way to start the journey when other banks might say no. As such, the Capital One Guaranteed Secured Mastercard® is a solid option to consider. This card does require a security deposit, but Capital One has an established reputation as a credit builder across North America, making the card a decent proposition. Still, with no chance of automatic graduation to the Capital One Guaranteed Mastercard®, it might fall short where others shine.

Legal Disclaimer

*You’re guaranteed to be approved for a Capital One Mastercard as long as:

• You are at least the age of majority in your province or territory of residence
• You don’t have a frozen credit profile and your eligibility for credit is not prohibited for legal or regulatory reasons
• You don’t have an existing Capital One account or a pending application for one; and
• You haven’t applied for a Capital One account more than once in the last 30 days, haven’t had a Capital One account that was not in good standing in the last year, and aren’t in legal recoveries with Capital One.

Capital One is not responsible for the content on this site including any editorials or reviews. Please click on the Apply now link for the most up to date product information.

Read: Best Capital One credit cards in Canada