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 receive them when paying your balance. As such, this card further pushes you to keep a low balance.
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.
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?
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 travellers.
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. Further research reveals this card historically hasn't offered one, which is typical for no-fee cards.
How to earn points on the Capital One Smart Rewards Mastercard
Though including the word in its name, rewards aren’t the strong suit of the Capital One Smart Rewards Mastercard. Cardholders only have one option to earn points: paying off their balance. Its rewards structure isn't designed for those willing to squeeze extra points by managing spending categories, welcome bonuses and merchant partners. Instead, it caters to no-frills spenders who want to keep a low balance.
You'll 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 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.
How to redeem points on Capital One Smart Rewards Mastercard
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.
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
- 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.
- 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.
- 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.
- Purchase assurance insurance: Protects new items purchased with the card against loss, theft, or damage for 120 days from the purchase date.
- Extended warranty insurance: Doubles the manufacturer's warranty, adding up to an additional two years.
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.
What people have to say about this card
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
Capital One Smart Rewards Mastercard vs. RBC ION Visa
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.
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.
Capital One Smart Rewards Mastercard vs. RBC ION+ Visa
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.
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.
Capital One Smart Rewards Mastercard vs. Capital One Aspire Travel Platinum Mastercard
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.
| Features | RBC ION | RBC ION+ | Capital One Aspire Travel Platinum |
|---|---|---|---|
| Annual fee | $0 | $48 ($4 monthly) | $0 |
| Welcome offer |
Get 3,500 Avion points on approval with the RBC ION Visa Card^ Apply by January 15, 2025. |
Get 3,500 Welcome Points on approval and earn 3,500 bonus points when you spend $500 in your first 3 months.^ Apply by January 15th, 2025. |
None |
| Insurance | Purchase security, extended warranty | Mobile device, purchase security, extended warranty | Rental car, common carrier accident, baggage delay, price protection, purchase security, extended warranty |
| Benefits | Earn 1.5 Avion points for every $1 spent on groceries, transportation (gas, rideshare, transit, EV charging), and streaming services and subscriptions | 3 Avion points† on grocery, dining, food delivery, gas, rideshare, public transit, EV charging, streaming, digital gaming and online subscriptions | Earn 1 Reward mile for every $1 spent |
| Review | Read review | Read review | Read review |
| Apply | Apply now | Apply now | 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.
FAQs
Read: Best Capital One credit cards in Canada
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.
Compare other Capital One credit cards
Compare other Capital One credit cards
Compare other Mastercard credit cards
Compare other Mastercard credit cards
Compare other travel credit cards
Compare other travel credit cards
Latest Articles
Disclaimer
The content provided on Money.ca is information to help users become financially literate. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter. Advertisers are not responsible for the content of this site, including any editorials or reviews that may appear on this site. For complete and current information on any advertiser product, please visit their website.