Quick overview of the Capital One Low Rate Guaranteed Mastercard
A rarity in the Canadian credit card market, the Capital One® Low Rate Guaranteed Mastercard® is a solution for cardholders who need to reduce their exposure to high interest and rebuild credit, but may not have high enough credit scores to qualify for most low-interest cards. Applicants are guaranteed to be approved for one of two versions of the card: those with higher credit scores will be approved for the Gold Low Rate card, and those with lower credit scores will be approved for the Secured card (conditions apply). Both offer low interest rates, but the Gold is an unsecured card with extra features, and the Secured has less features and requires security funds.
Who’s the card for?
The card is ideal for those with low credit scores who need a break from high interest. With effortless approval, a competitive balance transfer and purchase rate, plus some special perks, the Capital One® Low Rate Guaranteed Mastercard® is one of the most comprehensive lower-tier credit cards around.
Pros and cons
Pros
-
Guaranteed approval for Gold or Secured version
-
Low interest rate on purchases and transfers
-
Gold version offers extra perks like Price Protection
-
Benefits tailored for those with low credit scores
-
Competitive compared to similar secured cards
Cons
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Annual fee
-
Secured version lacks some features of Gold
-
Cash advance interest rate is relatively high
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Limited travel insurance, only with Gold version
-
Benefits may not outweigh annual fee for some
Capital One Low Rate Guaranteed Mastercard interest rates
The key benefit for cardholders with the Capital One® Low Rate Guaranteed Mastercard® (be it the Gold or Secured version) is its sensible 14.90% interest rate, which is applied to purchases and balance transfers alike. 14.9% is a low interest rate for cardholders with poor credit, and a lower rate makes it more feasible to carry a balance to the next month when need be.
However, the biggest benefit of the Capital One® Low Rate Guaranteed Mastercard® isn’t the fact that it has favourable interest rates; it’s that the rates are available via guaranteed approval (conditions apply). This is extremely useful for those who need to escape rates of 20.00%+ but who also have low credit scores. We hasten to emphasize that the 14.9% rate applies to not only purchases but balance transfers as well, which is a saving grace for those who were rejected from more popular balance transfer cards which typically require at least average/fair credit scores. Cash advances accrue interest at a relatively standard rate of 21.90%.
Pros
-
Guaranteed approval for Gold or Secured version
-
Low interest rate on purchases and transfers
-
Gold version offers extra perks like Price Protection
-
Benefits tailored for those with low credit scores
-
Competitive compared to similar secured cards
Cons
-
Annual fee
-
Secured version lacks some features of Gold
-
Cash advance interest rate is relatively high
-
Limited travel insurance, only with Gold version
-
Benefits may not outweigh annual fee for some
Capital One Low Rate Guaranteed Mastercard key benefits
- $79 annual fee
- Guaranteed approval (conditions apply)
- 14.90% rate on purchases and balance transfers
- Gold benefits include Price Protection, Purchase Assurance and more
- Basic travel insurance services (with Gold card only)
- Mastercard perks like Zero Liability
Capital One Low Rate Guaranteed Mastercard insurance coverage
- 1.
Purchase protection: Purchases charged to your card are protected for 90 days incase of loss or accidental damages.
- 2.
Extended warranty: This policy extends coverage for new purchases against damage and theft for 120 days, and it extends original manufacturer warranties by up to two years.
- 3.
Common carrier travel accident insurance: This policy offers $250,000 in coverage in case of accidental loss of life or dismemberment while traveling on a common carrier.
- 4.
Baggage delay insurance: Receive reimbursement for lost or delayed luggage, up to $100, when you purchase your trip using your card.
- 5.
Car rental collision/loss damage waiver: This car rental insurance allows you to waive the insurance policy of the car rental company and provides coverage for up to 31 days, with a maximum of $65,000.
What people say
After 7 months my score went up 63 points and had an automatic credit increase of 3000$ without asking them.
Kimihiro Watanuki
This card holder explains how their credit score jumped 63 points within 7 months of having the Capital One Low Rate Guaranteed Mastercard and they even got an increased credit limit without requesting. This just shows how you can easily rebuild your credit and get access to more available funds when you use your card smartly.
How the Capital One Low Rate Guaranteed Mastercard compares
Capital One Low Rate Guaranteed Mastercard vs. Home Trust Secured Visa
There are few guaranteed low-interest cards that can stand up to the Capital One® Low Rate Guaranteed Mastercard®. While the Home Trust Secured card offers a similar purchase interest rate for a lower annual fee ($79 versus $59), it doesn’t offer the Gold card’s extraneous benefits, such as Price Protection.
In comparison with other cards in the guaranteed/secured category—like the Home Trust Secured Visa—the Capital One® Low Rate Guaranteed Mastercard® is competitive. Home Trust’s Low Rate Secured Visa also offers a 14.90% purchase interest rate but for a $59 (or $5/month) annual fee (with less added perks and features than the Capital One® Low Rate Guaranteed Mastercard®), and 19.99% for those who don’t want to pay an annual fee.
Capital One Low Rate Guaranteed Mastercard vs. Neo Secured Credit Card
The Neo Secured Credit Card is another option to consider if you're looking to build your credit. In contrast to the Capital One Low Rate Guaranteed Mastercard, the Neo Secured Credit Card provides greater flexibility due to its lower deposit requirement and the added perk of cash back rewards. But it is important to note that the Neo Secured card has a few drawbacks, such as limited insurance benefits and reporting only to the TransUnion credit bureau, unlike the Capital One Low Rate Guaranteed Mastercard, which reports to multiple bureaus.
Capital One Low Rate Guaranteed Mastercard vs. Capital One Guaranteed Mastercard
If you don't tend to carry a balance on your credit card, you can consider getting the Capital One Guaranteed Mastercard, which has a lower annual fee, but higher interest rate. With the Capital One Guaranteed Mastercard, your purchase and balance transfer rate will be 21.90%. When it comes to insurance benefits, both cards offer similar coverage.
Is the Capital One Guaranteed Mastercardworth it?
If you're looking to rebuild your credit and also take advantage of low interest rates, the Capital One® Low Rate Guaranteed Mastercard is a great card to consider. Approval is almost instant, allowing you to quickly rebuild your credit, month by month.
Read: Best Capital One credit cards in Canada
Lubna Umar has worked in the field of personal finance for over 5 years. She has produced a wide variety of content including personal finance guides and insurance reports for brands like RATESDOTCA and the Financial Post. In her free time, she can be found writing fiction or exploring the café culture in Toronto or any other major city.
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