In this guide

  • Our verdict
  • Details
    • Product overview
    • Fees and charges
    • Application requirements

Capital One Luma Mastercard review 2024

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Capital One Luma Mastercard
3.5
★★★★★
Finder score
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).
Minimum credit limit
£200
Interest-free each billing period
Up to 56 days
Account fee
£0

Our verdict

If you're looking to rebuild your credit history, this no-frills credit card could help you get back on track.

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

  • 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.

In this guide

  • Our verdict
  • Details
    • Product overview
    • Fees and charges
    • Application requirements

Details

Product overview

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
Potential costs 3.5 ★★★★★
Doing its job 4.0 ★★★★★
Extras 4.0 ★★★★★
Overall Finder score 3.5 ★★★★★

Fees and charges

Minimum monthly payment 3% or £5 (whichever is greater) or the total of any interest, default fees and charges, 1/12th of annual fee plus 3% of the outstanding balance.
Annual/monthly fees £0
Balance transfer fee 3%
Money transfer fee 3%
Foreign usage charge (EU) 2.75%
Foreign usage charge (rest of world) 2.75%
Cash advance fee 3% (min. £3)
Late payment fee £12
Duplicate statement fee £0
Exceeding limit fee £12
Additional card fee £0
Dormancy fee £0

Application requirements

Minimum Age 18
Availability Available to new customers

The Capital One Luma Mastercard is issued on the Mastercard network so it's accepted at more than 50 million merchant locations across more than 210 countries and territories.

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How does it compare?

Capital One's card

1 - 1 of 1
Name Product Rating Finder score Annual/monthly fees Initial credit limits Minimum income Representative APR Incentive Link
Capital One Luma Mastercard
Finder score
★★★★★
★★★★★
Expert analysis
£0
Min. limit £200, max. limit £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).
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Expert analysis
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Representative example: When you spend £1,200 at a purchase rate of 28.95% (variable) p.a., your representative rate is 28.9% APR (variable).
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Approval for any credit card depends 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

The bottom line

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 offers you this deal, it 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 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 (£171.29), it'll cost you around £4.71 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%.

Finder credit card scores

★★★★★ — Excellent
★★★★★ — Good
★★★★★ — Average
★★★★★ — Subpar
★★★★★ — Poor

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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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.
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