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Capital One Luma Mastercard review 2022
If you're looking to rebuild your credit history, this no-frills credit card could help you get back on track.
You say: ★★★★★We say: ★★★★★
Representative example: When you spend £1,200 at a purchase rate of 35.94% (variable) p.a., your representative rate is 35.9% APR (variable).
£200
Minimum credit limit
Up to 56 days
Interest-free each billing period
35.9%
Representative APR
£0
Account fee
Details
| Issuer | Capital One |
|---|---|
| Network | Mastercard |
| Annual/monthly fees | £0 |
| Minimum credit limit | £200 |
| Maximum credit limit | Subject to status: £1,500 |
| Purchases | 35.94% |
| Purchases interest-free period (days) | 56 |
| Balance transfers | 35.94% |
| Additional cards available | 3 |
Review by
Chris Lilly
chris.lilly@finder.comChris Lilly is a publisher at finder.com. He's a specialist in personal finance, from day-to-day banking to investing to borrowing, and is passionate about helping UK consumers make informed decisions about their money. In his spare time Chris likes forcing his kids to exercise more.
Expert review
The Luma card from Capital One is a “credit builder”, meaning it’s designed for customers with a less than perfect credit record, or simply not much in the way of credit history. As you might expect, there’s no annual fee, but the card’s standard interest rate is high, making it an expensive option if you don’t clear your balance in full each month. However, use it responsibly, and this card could help you to improve your credit score (and in turn access better rates).
While your opening credit limit is likely to be relatively low (the maximum you will be offered initially is £1,500), the eligibility requirements are less strict than many other cards.
Pros and cons
Pros
- Credit limit of up to £1,500, subject to status.
- Eligibility requirements are not as strict as many other cards.
- No annual fees.
- Can help to build credit score with sensible use.
Cons
- Higher interest rates.
- Fees charges for missed payments or exceeding credit limit.
- Missed payments can have negative impact to credit score.
How does it compare?
Capital One's card
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Table: sorted by representative APR, promoted deals first
Approval for any credit card will depend on your status. The representative APRs shown represent the interest rate offered to most successful applicants. Depending on your personal circumstances the APR you're offered may be higher, or you may not be offered credit at all. Fees and rates are subject to change without notice. It's always wise to check the terms of any deal before you borrow.
Repayment options
You can make manual repayments through Capital One's app, by logging in to your online banking or over the phone(03444 812 812). Alternatively, you may wish to set up a direct debit.
A direct debit protects you from forgetting to make a repayment and damaging your credit score – making it harder and more expensive to borrow money in the future – and getting hit with a penalty fee (£12) as a result.
You can arrange a direct debit for repayments when you apply for the credit card. The table below shows the options available.
Choose from the following direct debit options for your monthly repayments:
| Minimum amount | Fixed amount | Fixed percentage | Full amount |
|---|---|---|---|
Our verdict
Capital One’s Luma card is designed for customers with a far from perfect credit record. In fact, this “credit builder” card might also be suitable for those with not much of a credit history in the first place.
There’s no annual fee but the card’s standard interest rate is likely to be high, depending on your own circumstances. So it could be a rather expensive option if you don’t pay in full each month and clear your balance. Used responsibly, the Luma card could help you improve your credit score (and in turn access better rates).
How to apply
If you've compared cards and settled on the Capital One Luma Mastercard, completing the secure online application form takes about 15 minutes. Before you apply, check that you meet the eligibility requirements and have the information and documents you'll need to make the process as straightforward as possible.
Frequently asked questions
What credit limit will I get with the Capital One Luma Mastercard?
If Capital One is able to offer you this deal, the offer will specify a personalised credit limit based on Capital One's assessment of your situation. The minimum limit offered on the card is £200, while the maximum is £1,500. Once you've had the card for a while and shown Capital One that you're reliable, you may wish to apply for a credit limit increase.
Can I withdraw cash using the Capital One Luma Mastercard?
Although it's possible, withdrawing cash from a credit card account is generally not a good idea, as "cash-like transactions" (such as withdrawing cash at an ATM, getting cashback at the till, spending at a casino or buying currency) often incur steep fees and/or higher rates of interest.
The cash advance fee on the Capital One Luma Mastercard is 3% (min. £3). For example, if you withdraw £50, you'll incur a fee of £3.00. Withdraw £250, and you'll incur a fee of £7.50.
The interest rate on this part of your balance will be 35.94%, which is the same as the standard purchase rate (chargeable from the day of the transaction – the card's usual "up to 56 days interest-free" grace period won't apply).
How much does it cost to use the Capital One Luma Mastercard abroad?
Non-sterling transactions are subject to a 2.75% charge. For example, if you spend 200 euros (£176.01), it'll cost you around £4.84 in fees.
Can I transfer money from the Capital One Luma Mastercard to a bank account?
Yes. That's what's known as a "money transfer" (rather than a "balance transfer") in credit card jargon. You can arrange this from your online banking or using Capital One's app. This part of your card balance will incur interest of 35.94%. The fee for a money transfer is 3%.
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Our experts score credit builder credit cards to determine their value against similar products on the market. We look at a number of important factors, like interest rates, credit limits, features to help you track your credit, plus the potential costs involved with running the card both in the short and longer term.
You can read more about our scoring criteria on our credit card methodology page.
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