Capital One Guaranteed Secured Mastercard

Capital One Guaranteed Secured Mastercard Review

The Capital One Guaranteed Secured Mastercard is an excellent choice for anyone aiming to build or rebuild their credit in Canada. With its required security deposit, approval is guaranteed, no matter your credit history. This card offers a practical and reliable method for establishing a positive credit record, setting you on the path to better financial health.

Welcome Offer

• None: There is no specific welcome offer for this card.

Summary

• Annual Fee: $59
• Interest Rate for Purchases: 19.8%
• Interest Rate for Cash Advances: 19.8%

Rewards

• None: This card does not offer a rewards program.

Benefits

• Credit Building: Accessible to individuals with poor credit, making it a great option for those looking to improve their financial situation.
• Credit Bureau Reporting: Reports to major credit bureaus, which can help you build or rebuild your credit over time as you demonstrate responsible use.

Insurance

• None: No insurance coverage is mentioned for this card.

Detailed Review

Interest Rates

• Purchase APR: 19.8%
• Cash Advance APR: 19.8%

The interest rates for both purchases and cash advances are the same, which simplifies understanding the cost of using this card. However, these rates are relatively high, so it’s essential to pay off your balance in full each month to avoid interest charges.

Fees

• Annual Fee: $59
• Foreign Transaction Fee: None

The annual fee is relatively modest, making it affordable for most users. The absence of a foreign transaction fee is a plus for those who travel or make purchases from foreign merchants.

Benefits

• Guaranteed Approval: As long as you provide the required security deposit, your approval is guaranteed, making it accessible even for those with poor credit.
• Credit Building: Regular reporting to major credit bureaus can help improve your credit score over time with responsible use.

Insurance Coverage

• None: This card does not offer any insurance benefits, which is a drawback compared to some other secured cards that may include travel or purchase protection.

Security Features

• Standard Security Features: Includes fraud alerts and zero liability for unauthorized transactions, providing peace of mind for users.

Pros and Cons

Pros

• Guaranteed Approval with a security deposit
• Reports to Major Credit Bureaus, aiding in credit building
• No Foreign Transaction Fees

Cons

• No Rewards Program
• No Insurance Coverage
• High Interest Rates compared to some other secured cards

Who is this card for?

This card is best suited for:

• Individuals with Poor or No Credit: Those looking to establish or rebuild their credit.
• Students and Young Adults: New to credit and looking for a guaranteed approval option.
• Those Needing Credit Bureau Reporting: Anyone needing a card that reports to all three major credit bureaus.

Comparison with Similar Canadian Cards

Final Verdict

The Capital One Guaranteed Secured Mastercard scores a 7/10. Its main advantages are the guaranteed approval and the reporting to major credit bureaus, which are critical for those aiming to build or rebuild credit. However, the lack of rewards and insurance coverage, coupled with relatively high interest rates, may be a downside for some users. It’s a straightforward, no-frills card that serves its primary purpose well—helping users establish a positive credit history.

Disclaimer: Refer to the credit card official web page for the latest up to date rates, terms, and conditions. Nothing in the Site constitutes professional and/or financial advice, nor does any information on the Site constitute professional and/or financial advice.