Capital One Luma Mastercard review 2020

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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

IssuerCapital One
NetworkMastercard
Annual/monthly fees£0
Min credit limit£200
Max credit limitSubject to status: £1,500
Purchases35.94%
Purchases interest-free period (days)56
Balance transfers35.94%
Additional cards available3

Expert review

Chris Lilly

Review by


Chris 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.

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

Data indicated here is updated daily
Name Product Annual/monthly fees Min credit limit Max credit limit Minimum income Rep. APR Incentive Link
Capital One Luma Mastercard
£0
£200
Subject to status: £1,500
Not specified
35.9%
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).
More Info
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Compare up to 4 providers

Other popular credit builders

Table: sorted by representative APR, promoted deals first
Data indicated here is updated daily
Name Product Annual/monthly fees Min credit limit Max credit limit Minimum income Rep. APR Incentive Link
TSB Classic Credit Card Mastercard
£0
£500
Not specified
Not specified
26.9%
Representative example: When you spend £1,200 at a purchase rate of 26.95% (variable) p.a., your representative rate is 26.9% APR (variable).
More Info
Tesco Bank Foundation Card
£0
£100
Subject to status
£5000
27.5%
Collect 1 Tesco Clubcard point per £4 spent (£4 minimum) in Tesco and 1 Clubcard point per £8 spent (£8 minimum) outside Tesco in each purchase transaction.  Must have available credit to collect Clubcard points. Clubcard points are turned into Clubcard vouchers every 3 months or sooner using Faster Vouchers. Clubcard vouchers can be used in Tesco or with Clubcard Reward Partners to get even more value on dining out, hotel stays and travel.
Representative example: When you spend £1,200 at a purchase rate of 27.542% (variable) p.a., your representative rate is 27.5% APR (variable).
More Info
Vanquis Bank Chrome Credit Card
£0
£250
Subject to status: £1,500
Not specified
29.5%
Representative example: When you spend £250 at a purchase rate of 29.5% (variable) p.a., your representative rate is 29.5% APR (variable).
More Info
Vanquis Bank Aquis Visa
£0
£250
Subject to status: £1,000
Not specified
29.8%
You could get a credit limit increase after your 5th statement and further increases every 5 months, up to £4,000.
Representative example: When you spend £1,000 at a purchase rate of 29.84% (variable) p.a., your representative rate is 29.8% APR (variable).
More Info
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Compare up to 4 providers

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.

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

How to apply

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.

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).

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" (withdrawing cash at an ATM, getting cashback at the till, spending at a casino, buying currency, etc.) 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 purchases 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 (£180.90), it'll cost you around £4.97.

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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