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Capital One Smart Rewards Mastercard

Capital One Smart Rewards Mastercard review

Daniel Schoester

Mar 21, 2025

While we adhere to strict editorial guidelines, partners on this page may provide us earnings.

Overall rating

First year value

$0

Get this card if you:

  • want to earn rewards for paying down your balance
  • value comprehensive insurance benefits
  • have a fair credit score

Scores by category

Rewards 2.5

Travel 2.0

No Annual Fee 1.2

At a glance

The Capital One Smart Rewards Mastercard is a no-annual-fee credit card that rewards cardholders with points for making payments toward their balance, rather than for spending. This unique structure encourages responsible financial habits, though the rewards program may offer lower value compared to other cards.

Highlights

$0

First year value

$0

Annual fee

$0 for any additional cards

Interest Rates

21.9%

Purchase APR

21.9%

Balance transfer APR

21.9%

Cash advance APR

Eligibility

Fair

Recommended credit score

Quick overview

The Capital One Smart Rewards Mastercard is a distinctive credit card. The unorthodox approach to earning points promotes healthy credit habits, especially for those tempted to spend. Rather than earning rewards when spending, you earn points when paying your balance. 

Ultimately, this card has a unique offering. While lacking on the rewards frontier, insurance coverage is surprisingly strong for a no-fee card. Its unorthodox approach to earning points promotes consistent payments.

Who's the Capital One Smart Rewards Mastercard for?

  • People who need reminders to make payments: The Capital One Smart Rewards Mastercard is right if you need an added push to make payments. This no-fee card promotes healthy financial habits, rewarding you for payments rather than spending. The mindset of keeping a low balance also helps you build a great credit score.
  • Further insurance coverage sweetens the deal for credit-conscious travellers.
  • Canadians new to credit card rewards: While this card isn’t for rewards maximalists, it does cater to a niche audience. It’s a solid entry-level option for those who value travel insurance coverage more than rewards. It’s especially useful for young adults learning responsible financial behaviour.

Pros and cons

Pros
  • No annual fee
  • Earns five points per dollar paid towards the balance
  • Points don’t expire
  • Pre-approval without impacting credit score
  • Travel assistance and Mastercard Global Service
  • Strong insurance coverage (common carrier, baggage delay, rental car, purchase assurance, and extended warranty)
  • Price protection service
  • Zero liability for unauthorized purchases
Cons
  • Low rewards earn rate (0.67%)
  • Slightly higher interest rate (21.9%)
  • Price protection is capped at $500 per year
  • Limited to Capital One's redemption options

Capital One Smart Rewards Mastercard welcome bonus

The Capital One Smart Rewards Mastercard doesn't provide a welcome bonus. 

Though including the word in its name, rewards aren’t the strong suit of the Capital One Smart Rewards Mastercard. Instead, it caters to no-frills spenders who want to keep a low balance:

  • Earn 5 points per $1 paid towards your balance

For example, you'll earn 1,250 points for a $250 payment. While Capital One gate keeps the value of the points, it's estimated to cost around 0.133 cents per point. This translates to an actual earn rate of 0.67%, far from market-leading but not terrible for a no-fee card when considering the enhanced insurance coverage.

Points are earned on net payments, meaning any reversed or refunded payments are deducted.

Program limitations

Further research reveals some loopholes in the card – namely, a sub-par rewards program. While the card lets you earn 5 points per $1 paid towards your balance, the actual value of these points is menial. The Capital One Smart Rewards Mastercard will earn you 0.67% on balance payments. Redemption options are primarily gift cards and account credits. To compensate, the card offers a strong insurance suite, protecting travellers.

Redemption option
Value
Statement credit
0.133 cents per point
Cheque
0.133 cents per point
Gift card
0.125 cents per point.

  • Capital One Rewards redemptions explained

    +

    The primary ways to redeem rewards from this card include gift cards and account credits. Account credits are slightly better, as they value your points more. Simply log in to the rewards portal to make redemptions.

    Gift cards can be redeemed in varying denominations. You’ll need around 20,000 points for a $25 gift card, valuing the redemption at 0.125 cents per point. However, the selection and amount of points required can change without notice. Furthermore, the gift cards are physically sent to your address within two weeks of processing the request.

    Alternatively, you can redeem points as account credits. These lower your account balance but don’t count towards your minimum monthly payment. It costs 750 points for a $1 credit, valuing your points slightly higher at 0.133 cents per point. Unlike gift card redemptions, you have more flexibility since there is no minimum redemption amount.

    Regardless of your redemption, points won't expire if your account remains in good standing. However, closing your account will forfeit your accumulated points.

ℹ️ Capital One Smart Rewards Mastercard key benefits

  • Reward points for payments: Earns five points for every dollar paid towards the card balance, promoting timely payments and financial responsibility.
  • No annual fee: Ideal for those seeking a cost-effective credit card option without additional yearly charges.
  • Strong insurance coverage: Offers purchase assurance, extended warranty, and car rental collision/loss damage waiver, providing added security on purchases and rentals.

Capital One Smart Rewards Mastercard insurance coverage

Protection
Coverage
Extended warranty
Doubles the manufacturer's warranty, adding up to an additional two years.
Purchase assurance insurance
Protects new items purchased with the card against loss, theft, or damage for 120 days from the purchase date.
Baggage delay insurance
Offers compensation for purchasing essential items if the carrier delays your checked baggage for more than four hours. Coverage is up to $300 per insured person for each insured trip. You’ll need to charge the full cost of your tickets to the Capital One card. 
Common carrier travel accident insurance
Provides coverage against accidental loss of life or dismemberment while travelling on a common carrier (like buses, trains, planes). The coverage is up to $250,000 for you, your spouse and dependent children. 
Car rental collision/loss damage waiver insurance
Covers eligible rental vehicles for collision or theft up to the vehicle's actual cash value, up to $75,000. The coverage is valid for rentals up to 31 days.

Extra benefits

  • Price protection service: If an item bought with the card goes on sale within 60 days, the price difference is reimbursed up to $100 per item, capped at $500 per year.
  • Travel assistance: Offers 24/7 support for emergencies during travel, including medical referrals and lost luggage assistance.
  • Mastercard global service: Provides emergency card replacement and cash advance, along with 24/7 telephone access and ATM referrals in case of lost or stolen cards.
  • Zero liability: Protection against unauthorized card charges.

The RedFlagDeals community's reaction to the Capital One Smart Rewards Mastercard is mixed. Mostly, there is skepticism about the actual value of the points earned, with speculation about their low worth. The following statement sums it up:

Mentioning the 5x points as a highlight is meaningless unless we know what a point is worth.

coolintheshade

💳 How the Capital One Smart Rewards Mastercard compares

3,500 Avion points†

Welcome Bonus

$298

First Year Value

$273

Annual Value

Welcome Bonus: Get 3,500 Avion points on approval^ - that's a $25 value in gift cards†!

Apply Now On RBC's Secure Site

The RBC Ion Visa Card earns more rewards in exchange for reduced insurance coverage. While both cards are free, ION Visa cardholders earn up to 1.5x Avion points. The Ion Visa Card also offers a welcome bonus upon approval, while the Capital One Smart Rewards Mastercard doesn't.

However, the Capital One Smart Rewards Mastercard shines with its insurance coverage. Both cards offer standard purchase security and extended warranty, but the Capital One card offers more travel coverage. This includes rental cars, baggage delays and common carrier accidents. Neither card offers travel health insurance, generally reserved for premium travel credit cards.

Capital One Smart Rewards Mastercard RBC ION Visa
Annual fee:
$0 		Annual fee:
$0
Credit needed:
Fair 		Credit needed:
Fair
Rewards:
Earn 5 points per $1 paid towards your balance 		Rewards:
Earn 1.5 Avion points for every $1 spent on groceries, transportation (gas, rideshare, transit, EV charging), and streaming services and subscriptions
Earn 1 Avion point for every $1 spent on all other qualifying purchases
Insurance:
Extended warranty, purchase protection, travel accident insurance, baggage delay, rental car coverage 		Insurance:
Extended warranty, purchase protection
Read Review Apply Now

Disclosures:

  • Refer to RBC page for up to date offer terms and conditions.

    This post contains affiliate links. Please read disclaimer for more info. 

    Disclaimer: Money.ca may engage in affiliate marketing, which is done by embedding tracking links into Money.ca. If you click on a link for an affiliate partnership, a cookie will be placed on your browser to track any sales for purposes of commissions.

up to 7,000 points†

Welcome Bonus

$506

First Year Value

$456

Annual Value

Welcome Bonus: Get up to 7,000 Avion points^ - that’s up to $50 of value in gift cards!†

Apply Now On RBC's Secure Site

Those willing to pony up some cash can upgrade to the RBC ION+ Visa. You can earn over triple the points compared to the Capital One Smart Rewards Card. RBC ION+ cardholders earn up to 3 x Avion points per dollar spent, translating to a 2.14% earn rate.

However, the insurance coverage pales compared to the Capital One Smart Rewards. The ION+ only offers moderately better insurance than its free ION counterpart, including mobile device, purchase security and extended warranty. It caters to homebodies, while the Smart Rewards card coverage aligns better with travel junkies.

Capital One Smart Rewards Mastercard RBC ION+ Visa
Annual fee:
$0 		Annual fee:
$48
Credit needed:
Fair 		Credit needed:
Good
Rewards:
Earn 5 points per $1 paid towards your balance 		Rewards:
Earn 3 Avion points† per $1 on qualifying grocery, dining, food delivery, gas, rideshare, public transit, EV charging, streaming, digital gaming and online subscriptions
Earn 1 Avion point per $1 on all other purchases
Insurance:
Extended warranty, purchase protection, travel accident insurance, baggage delay, rental car coverage 		Insurance:
Extended warranty, purchase protection, mobile device protection
Read Review Apply Now

Disclosures::

  • Refer to RBC page for up to date offer terms and conditions.

    This post contains affiliate links. Please read disclaimer for more info.

    Disclaimer: Money.ca may engage in affiliate marketing, which is done by embedding tracking links into Money.ca. If you click on a link for an affiliate partnership, a cookie will be placed on your browser to track any sales for purposes of commissions.

$216

First Year Value

$0

Annual Value

Apply Now On Capital One's Secure Site

Frequent travellers will find more value in the Capital One Aspire Travel Platinum Mastercard. Not only will you earn more points with this free card, but you can also redeem points on travel-related expenses. In contrast, the Smart Rewards card focuses on gift cards and statement credits.

As for points, the Aspire Travel Platinum Mastercard touts a 1% earn rate, outshining the 0.67% offered by the Smart Rewards Mastercard. Both cards provide identical insurance coverage, cementing the Aspire Travel Platinum Mastercard as the better option.

Capital One Smart Rewards Mastercard Capital One Aspire Travel Platinum
Annual fee:
$0 		Annual fee:
$0
Welcome offer:
Get up to 7,000 Avion points^ - that’s up to $50 of value in gift cards!† 		Welcome bonus:
N/A
Insurance:
Extended warranty, purchase protection, travel accident insurance, baggage delay, rental car coverage 		Insurance:
Rental car, common carrier accident, baggage delay, price protection, purchase security, extended warranty
Rewards:
Earn 5 points per $1 paid towards your balance 		Rewards:
Earn 1 Reward mile for every $1 spent
Read Review Apply now

Is the Capital One Smart Rewards Mastercard worth it?

The Capital One Smart Rewards Mastercard is worth it for those looking for a no-fee card with solid insurance perks. While the rewards potential is lacklustre, the extensive coverage can offset costly travel incidents. The unorthodox method of earning points with balance payments also helps promote healthy financial habits.

Read: Best Capital One credit cards in Canada

Eligibility requirements

  • Must be of the age of majority in the province or territory in ehich you reside
  • Must be 18 years of age or older 
  • Fair credit score

FAQs

  • What is Capital One Smart Rewards Mastercard?

    +

    Capital One Smart Rewards Mastercard is a no-annual-fee credit card that earns five points per dollar paid toward your balance. You can primarily redeem points for gift cards and statement credits.

  • How do you redeem your Capital One Rewards?

    +

    You can redeem Capital One Smart Rewards points online for gift cards, statement credits to your account, or unspecified "other options" that are not detailed.

  • How much is 1,000 Capital One points worth?

    +

    Your 1,000 Capital One Smart Rewards points are worth approximately $13.33 when redeemed for statement credits to your account or around $12.50 when used for gift cards.

  • Do Capital One Rewards points expire?

    +

    No, Capital One Smart Rewards points do not expire as long as your account remains in good standing. If you close the card, you will lose any unused points.

Daniel Schoester Freelance contributor

Daniel is an expert on travel, finance, and SEO. He received an Honours BBA (Finance) from Wilfrid Laurier University, then started his career with WOWA. Here, he learned various SEO tactics that were instrumental in quadrupling monthly traffic to one million views. Now the founder of Croton Content, Daniel helps financial companies scale through evergreen content. Aside from Money Wise, notable clients include Forbes Advisor, WealthRocket, and Hardbacon. Daniel loves to travel when not working. Although based out of Lisbon, Portugal, some of his most adventurous destinations include Rio, Cairo, and Istanbul.

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