Approval for any credit card will depend on your status. The APR shown represents 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.
Capital One Luma Mastercard review July 2020
Last updated:
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).
35.9%
Representative APR
£0
Account fee
£200
Minimum credit limit
Details
| Issuer | Capital One |
|---|---|
| Network | Mastercard |
| Annual/monthly fees | £0 |
| Min credit limit | £200 |
| Max credit limit | Subject to status: £1,500 |
| Purchases | 35.94% |
| Purchases interest-free period (days) | 56 |
| Balance transfers | 35.94% |
| Additional cards available | 3 |
Expert review
Review by
Chris Lilly
chris.lilly@finder.comChris Lilly is a publisher at finder.com. He's a specialist in credit-based products including business and personal loans, mortgages and credit cards, and is passionate about helping UK consumers make informed decisions about their borrowing. 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.
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Table: sorted by representative APR, promoted deals first
Repayment options
When it comes to repayments, you can make manual repayments online or over the phone (03444 812 812), or alternatively set up a direct debit. A direct debit is a great idea because it protects you from forgetting to make a repayment and either damaging your credit score, getting hit with a penalty fee or losing any promotional rates 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 |
|---|---|---|---|
How to apply for the Luma card
If you have compared cards and want to apply, 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 will need to make the process as straightforward as possible.
Pros and Cons of Capital One
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
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).
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Our team evaluates credit cards to determine their value against similar products on the market.
We look at the how good the card is for its designated purpose – spending abroad, clearing debt, earning air miles etc. – how costly it is to use day-to-day and whether it offers much in the way of extras.
We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you.