Overall rating
First year value
$0
Get this card if you:
- looking to improve your credit score
- value purchase protection and extended warranty coverage
- want to enjoy the convenience and security of a Mastercard
Scores by category
No Annual Fee 2.6
At a glance
The Capital One® Guaranteed Mastercard® is designed for individuals with less-than-perfect credit histories, offering guaranteed approval (subject to conditions) and the opportunity to rebuild credit. Depending on the applicant's credit profile, approval may be for an unsecured card or a secured version requiring a security deposit; both versions provide benefits such as purchase protection and extended warranty coverage.
Highlights
$59
Annual fee
No annual fee
Interest Rates
21.9%
Purchase APR
21.9%
Balance transfer APR
21.9%
Cash advance APR
Eligibility
Poor
Recommended credit score
Quick overview of the Capital One® Guaranteed Mastercard
Virtually every time we apply for a credit card, we run the risk of not only being rejected, but of our credit score taking a hit as well. This is a gamble for those that already have lower credit scores and are looking to build them up.
The Capital One® Guaranteed Mastercard is a good option for those who don’t have a stellar financial history and are looking to improve their credit without paying an exorbitant annual fee. Some applicants with higher credit scores will be offered an unsecured version of the card, while those with weaker credit will be referred to the Capital One® Guaranteed Secured Mastercard. There are few practical differences between the two, aside from the fact that cardholders of the latter need to provide security funds, and cardholders of the former do not.
Enter ‘Guaranteed Approval’ cards, like the Capital One® Guaranteed Mastercard. 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.
Cardholders are guaranteed to be approved for at least one version of the card as long as they meet these basic requirements:
- They’re the age of majority in their province or territory of residence.
-
They don’t already have a Capital One account/product or a pending application for a Capital One® account/product.
-
They haven’t applied for a Capital One account/product in the 30 days prior to their application for the Capital One® Guaranteed Mastercard.
-
They can provide the security funds required *in the event that they’re approved for the secured rather than unsecured version of the card.
Who's this Capital One Guaranteed Mastercard for?
- Anyone with damaged credit: The Capital One® Guaranteed Mastercard is a good option for those who don’t have a stellar financial history and are looking to improve their credit without paying an exorbitant annual fee.
- Canadians new to credit: With effortless approval, a competitive balance transfer and purchase rate, plus some special perks, the guaranteed approval of the Capitol One® Gold Mastercard® is one of the most comprehensive lower-tier credit cards around.
Pros and cons of the Capital One Guaranteed Mastercard
Pros
-
Guaranteed approval for rebuilding credit
-
Option for an unsecured version for some applicants
-
$59 annual fee, with potential for a lower rate on unsecured card
-
Additional benefits like Price Protection and extended warranties
-
Travel benefits for unsecured cardholders
-
Mastercard's Zero Liability and 24/7 customer service
Cons
-
$59 annual fee may be higher than some secured cards
-
19.80% interest rate on purchases, balance transfers, and cash advances
-
Extra features available only on unsecured cards
-
Limited benefits compared to premium credit cards
-
Secured card requires security funds between $75 and $300
-
Consideration needed for the slightly more expensive low-rate version
Capital One® Guaranteed Mastercard welcome bonus
The Capital One® Guaranteed Mastercard does not offer any welcome bonus.
Does the Capital One® Guaranteed Mastercard offer rewards?
No. The card does not earn cash back or points on purchases. Instead, it gives Canadians with limited credit history or damaged credit history a chance at establishing a strong credit history with on-time payments and responsible credit use. And that is reward enough in our books.
Key features breakdown of the Guaranteed Mastercard from Capital One Canada
- $59 annual fee
-
Guaranteed approval (conditions apply)
-
Establish and repair credit
-
Mastercard benefits including Zero Liability
How does Capital One pre-approval work?
Capital One Canada's Quick Check® uses some basic personal and financial information to see if you qualify for one of its credit cards. Capital One then uses your information to see if you qualify so you can be sure when you apply.
When you submit your pre-approval application, there is no impact to your credit score. This known as a "soft inquiry," although applying for a card once pre-approved will trigger a "hard inquiry," which will ding your credit score slightly.
Here's what information you'll need to use the Quick Check® tool:
- Full name
- Contact address & phone number
- Email address
- Social Insurance Number (SIN)
- Employment information
- Income
Capital One® Guaranteed Mastercard insurance coverage
Extra benefits
Enjoy 24/7 travel assistance (essentially an emergency concierge), Mastercard’s Zero Liability feature and 24/7 customer service.
This Reddit user explains how their credit score immediately started improving with the Capital One Guaranteed Mastercard, showing how fast your credit score can jump when you smartly use your secured credit card. Best of all, this credit card reports to major credit unions which is a huge bonus.
I had a credit score just over 600 and I gave them $75 for a $2500 credit limit. The next credit reporting period my credit jumped up to almost 650 before I had even made a first payment on the card.
/u/MGCanada
Capital One Guaranteed Mastercard compared
Capital One Guaranteed Mastercard vs. Home Trust Secured Visa Card
$0
First Year Value
$0
Annual Value
Get this card if you...
-
are looking to improve your credit
-
want a secured card with a higher limit
-
want to take advantage of an interest-free grace period
Annual Fee & Annual Interest Rates
$0
Annual Fee
19.99%
Purchase
19.99%
Cash Advance
19.99%
Balance Transfer
Our Take
The Home Trust Secured Visa is designed for individuals aiming to build or rebuild their credit, offering two options: a no-annual-fee card with a standard interest rate or a low-interest version with an annual fee. Cardholders benefit from features such as purchase protection and extended warranty coverage, but are required to provide a security deposit, which determines the credit limit.
Eligibility
Good (620 - 670)
Recommended Credit Score
$0
Required Annual Personal Income
$0
Required Annual Household Income
Pros
-
Reports to credit bureaus every month, helping to quickly build your credit rating.
-
Requires a $500 minimum deposit, with the credit limit scaling on a 1:1 basis all the way up to $10,000.
-
High approval rate
-
Monthly credit reporting to major credit agencies every month, expediting the credit repair or improvement process
-
Low foreign transaction fee
-
Cardholders get a 21-day no-interest grace period
-
Low monthly minimum payment options; pay either the greater of $10 or 3% of the monthly balance.
Cons
-
Standard interest rate although, if you opt for the annual fee version of the card, it comes down
-
No rewards or perks
-
Charges a monthly inactivity fee of $12 if the card is not used for a period of 12 months.
-
Despite a high approval rate, there are still chances of being denied based on deal-breaking factors
-
No welcome bonus offer as it is designed for credit building
Annual Interest Rates
19.99%
Purchase
19.99%
Cash Advance
19.99%
Balance Transfer
Fees
$0
Annual Fee
2.50%
Foreign Transaction
Our Take
The Home Trust Secured Visa is designed for individuals aiming to build or rebuild their credit, offering two options: a no-annual-fee card with a standard interest rate or a low-interest version with an annual fee. Cardholders benefit from features such as purchase protection and extended warranty coverage, but are required to provide a security deposit, which determines the credit limit.
Eligibility
Good (620 - 670)
Recommended Credit Score
$0
Required Annual Personal Income
$0
Required Annual Household Income
Pros
-
Reports to credit bureaus every month, helping to quickly build your credit rating.
-
Requires a $500 minimum deposit, with the credit limit scaling on a 1:1 basis all the way up to $10,000.
-
High approval rate
-
Monthly credit reporting to major credit agencies every month, expediting the credit repair or improvement process
-
Low foreign transaction fee
-
Cardholders get a 21-day no-interest grace period
-
Low monthly minimum payment options; pay either the greater of $10 or 3% of the monthly balance.
Cons
-
Standard interest rate although, if you opt for the annual fee version of the card, it comes down
-
No rewards or perks
-
Charges a monthly inactivity fee of $12 if the card is not used for a period of 12 months.
-
Despite a high approval rate, there are still chances of being denied based on deal-breaking factors
-
No welcome bonus offer as it is designed for credit building
Annual Interest Rates
19.99%
Purchase
19.99%
Cash Advance
19.99%
Balance Transfer
Fees
$0
Annual Fee
2.50%
Foreign Transaction
The Home Trust Secured Visa is a great option if you want to rebuild your credit without paying an annual fee. This card comes with a highly flexible credit limit (ranging from $500 to $10,000) and a foreign transaction fee of only2.5%. In comparison, the Capital One Guaranteed Secured MasterCard has a $59 annual fee but offers a lower initial security deposit of 500, which is low compared to other secured cards. The Capital One® Guaranteed Mastercard also provides good insurance coverage, which is rare for a secured card.
| Capital One Guaranteed Mastercard | Home Trust Secured Visa Card |
|---|---|
|
Card type:
Unsecured |
Card type:
Secured |
|
Annual fee:
$59 |
Annual fee:
$0 |
|
Interest rates:
Purchases: 21.9% Transfers: 21.9% Advances: 21.9% |
Interest rates:
Purchases: 19.99% Transfers: 19.99% Advances: 19.99 |
| Read Review | Apply Now |
$184
First Year Value
$0
Annual Value
Get this card if you...
-
have a low credit score
-
want to improve your credit score
-
want to earn cash back on everyday purchases
Annual Fee & Annual Interest Rates
$59
Annual Fee
19.99% - 29.99%
Purchase
22.99% - 31.99%
Cash Advance
Our Take
The Neo Secured Mastercard is a secured credit card designed to help individuals build or rebuild their credit history. It offers cash back rewards on purchases, with earn rates that increase based on the balance maintained in a linked Neo Everyday account.
Eligibility
Poor (up to 299)
Recommended Credit Score
$0
Required Annual Personal Income
$0
Required Annual Household Income
Pros
-
Low minimum security deposit
-
Cash back rewards on purchases
-
No hard credit check
Cons
-
High APR range
-
$5 monthly fee
-
Best cash back offer requires high balance
Annual Interest Rates
19.99% - 29.99%
Purchase
22.99% - 31.99%
Cash Advance
Fees
$59
Annual Fee
Rewards cash back
Up to 4%
Earn up to 4% on gas and groceries
up to 1%
Earn up to 1% on everything else
$680
Earn up to $680 in annual cashback
Our Take
The Neo Secured Mastercard is a secured credit card designed to help individuals build or rebuild their credit history. It offers cash back rewards on purchases, with earn rates that increase based on the balance maintained in a linked Neo Everyday account.
Eligibility
Poor (up to 299)
Recommended Credit Score
$0
Required Annual Personal Income
$0
Required Annual Household Income
Pros
-
Low minimum security deposit
-
Cash back rewards on purchases
-
No hard credit check
Cons
-
High APR range
-
$5 monthly fee
-
Best cash back offer requires high balance
Annual Interest Rates
19.99% - 29.99%
Purchase
22.99% - 31.99%
Cash Advance
Fees
$59
Annual Fee
Rewards cash back
Up to 4%
Earn up to 4% on gas and groceries
up to 1%
Earn up to 1% on everything else
$680
Earn up to $680 in annual cashback
When comparing the two cards, it is clear that the Neo Secured Credit Card presents greater flexibility through its lower deposit requirement and the additional perk of cash back rewards. However, Capital One's card may be preferable for individuals seeking a card that reports to multiple credit bureaus, as the Neo Secured Credit Card only reports to TransUnion.
| Card | Capital One Guaranteed Mastercard | Neo Secured Mastercard |
|---|---|---|
| Benefits |
● Low credit score requirements
● 24/7 travel concierge services ● Comprehensive insurance coverage |
● Enjoy high cash back rates on first purchases with select Neo partners including Amazon, Canadian Tire, Loblaws and Netflix (see all partners in the Neo app)
● Low minimum security deposit (as low as $50) |
| Insurance coverage | Purchase protection, extended warranty, car rental collision/loss damage waiver insurance, baggage delay insurance, common carrier accidental insurance | Purchase protection, extended warranty, group life insurance |
| Interest rates |
● Purchase APR: 21.9%
● Cash Advance APR: 21.9% ● Balance Transfer Rate: 21.9% |
● Variable APR: 19.99% - 29.99%
● Cash Advance APR: 22.99% - 31.99% (Plus a $2.50 fee in Canada, $5 fee anywhere else) |
| Read review | You are reading it! | Neo Secured Mastercard review |
| Apply Now | Apply Now | Apply Now |
Disclosures:
- Neo Credit and Neo Secured Credit cards are issued by Neo Financial™ pursuant to license by Mastercard International Incorporated.
Tips for building credit
Is the Capital One® Guaranteed Mastercard worth it?
If you have poor credit and you want to rebuild your credit score, the Capital One® Guaranteed Mastercard can help you achieve that and also give you good insurance coverage.
Eligibility requirements
- Must be a Canadian resident
- Must be of the age of majority in your province or territory
- No credit history/ Fair credit
- Annual fee: $59
- Purchase APR: 21.9%
- Cash advance APR: 21.9%
- Balance transfer APR: 21.9%
- Foreign transaction fee: 2.5% of the transaction in CDN
FAQs
Scott Birke is a financial content editor at Money.ca.
Cory Santos is a finance writer, editor and credit card expert with nearly a decade of experience in personal finance. Cory joined Wise Publishing from BestCards, with bylines in numerous print and digital publications across North America, including the Miami Herald, St. Louis Post-Dispatch, Debt.ca, AOL, MSN and Medium as well as financial podcasts like KOFE Talk.
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