Capital One Guaranteed Mastercard® Review

  • 4 min read

Looking to repair or establish your credit rating? Capital One has an interesting credit card option for you to consider if you do have a bad credit score. Whether you have filed for bankruptcy or defaulted on loans/credit debt in the recent past, you’ll likely be eligible for the Capital One Guaranteed Mastercard. With an annual fee of $59, it’s considered a “secured” credit card as a deposit is needed. While the credit limit ranges from $300 to $7,000, security funds between $75 to $300 need to be paid before your Mastercard will be issued.

This can be done via online banking, a cheque, or a money order. If you close the account at any time, and your balance is paid off, this security deposit is returned to you in full.

Approval is “guaranteed”, as long as you meet four conditions. The first one includes reaching the age of majority in the Canadian province or territory you reside in, and the second is that you can’t have an existing Capital One account or application pending. The third qualification is that you can’t have applied for a Capital One account more than one time in the last 30 days, and finally, you can’t have had a Capital One account that was not in good standing within the last year.

With that said, guaranteed approval isn’t the only benefit to this Capital One Mastercard. The company reports on your credit card’s activity to credit reporting agencies, monthly. As long as you stay within your credit limit and make your minimum payments on time, it will essentially help improve your credit score as time goes by. A better credit rating will open a door to other credit options for the future, including better interest rates on loans, and approval for mortgages.

The Guaranteed Mastercard’s interest rates are standard, with balance transfers and purchases at 19.8%, plus, cash advances set at 21.9%. It also has Zero Liability protection, so you never have to worry about being held accountable for unauthorized charges.

If you have a good credit history, you may be eligible for Capital One’s Gold Mastercard, instead. No security deposit is needed. The details are outlined, below.

Capital One Gold Mastercard

If you qualify for the Capital One Gold Mastercard, several doors open to you. The annual fee is set at $59, and the purchase, cash advances, and balance transfer rates are the same as the Guaranteed Mastercard, too. However, there are a ton of perks with this credit card, versus the other.

First off, you get Price Protection. This allows you a refund of up to $100 per item, with a maximum of $500, annually, if something you have charged goes on sale within 60 days. Extended Purchase Assurance is also offered, with items charged insured against damage or theft for up to four months. Lastly, the Capital One Gold Mastercard provides you with Extended Warranty. This doubles the warranty offered by a manufacturer on purchases charged by up to two added years, at no extra cost.

If you travel frequently for business or personal reasons, then it’s important to note that the Gold Mastercard has some valuable travel insurance benefits, too. First off, the Common Carrier Travel Accident Insurance provides up to $250,000 for accidental dismemberment or loss of life for you, a spouse, and dependant children while traveling on a common carrier (i.e. plane, train, bus, or cruise ship). Car Rental Collision/Loss Damage Waiver ensures you are covered for any rental cars that are stolen or damaged while in your possession. You must charge the full car rental amount to the credit card, and you can waive the collision damage insurance offered by the rental company to save approximately $20 to $30 each day on rental fees. Baggage Delay coverage offers up to $100 each day, for up to three days, on essential items if your baggage is delayed for over four hours. Once again, to gain access to this insurance, you must charge the full cost of your flight to your Capital One Gold. Finally, Mastercard offers a Travel Assistance Service: members can access a 24/7 phone line while away from home. Some of the things you can reach out for on this line include, medical and legal referrals, lost luggage assistance, as well as lost documents and ticket replacements, among other things.

In addition, both Mastercards provide you with their Global Service line that can be accessed, day or night. Whether you need help with a lost or stolen card, an emergency cash advance, or a referral to the closest ABM, you can reach out to this Mastercard customer service option for assistance.

To learn more about the Gold Mastercard or Guaranteed Mastercard, visit Capital One’s website. Both cards can be applied for online.

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Christopher - BSc, MBA

With over two decades of combined Big 5 Banking and Agency experience, Christopher launched Underbanked® to cut through the noise and complexity of financial information. Christopher has an MBA degree from McMaster University and BSc. from Western University in Canada.