The Journey® Student Rewards from Capital One® is a great card for students who don’t have enough credit history to qualify for more lucrative rewards credit cards, but who don’t want to settle for a card without perks.
The Journey® Student Rewards from Capital One® is structured to teach and reward good credit practices by rewarding on-time payments with a higher rewards rate. By learning to responsibly use this card, students can earn up to 1% cash back on all purchases. Pay on time to boost your cash back to a total of 1.25% for that month.
|Card||Ongoing Purchase APR||Annual Fee||Intro Bonus||Credit Needed||Key features|
|Journey® Student Rewards from Capital One®||26.74% (Variable) APR||$0||None||Fair to Good||Unlimited 1% cash back on every purchase|
What we like about the Journey® Student Rewards from Capital One®
The Journey® Student Rewards from Capital One® provides cash back rewards to students who would normally not qualify for rewards credit cards. This card offers 1% cash back on all purchases and an additional .25% for each month you make your payment on time, rewarding students who use the card responsibly. After you make your first five payments on time, you’ll have access to a higher credit line with Capital One’s Credit Steps program.
If you’re a student who is looking for their first credit card, don’t overlook this one. The card’s cash-back rewards and $0 annual fee makes it a great option for people who have little or no credit history. To top it off, the Journey® Student Rewards from Capital One® also has foreign transaction fees, making it a fantastic card to take with you on your semester abroad or on your spring break vacation to Mexico.
Things to consider
If you’re looking for a credit card with heavy-hitting rewards, the Journey® Student Rewards from Capital One® isn’t it. With no new cardmember bonus and a lackluster rewards rate compared to other cash-back rewards cards, you’ll have to use your card a lot to earn enough rewards to pay for travel or large purchases.
Also, if you use this card too much without paying off your balance in full every month, you’ll have to contend with its high interest rate. The Journey® Student Rewards from Capital One® credit card’s 26.74% (Variable) purchase APR can cause some major issues if you don’t already have good credit card habits.
The Journey® Student Rewards from Capital One® is designed to help people build their credit history while also developing credit card responsibility. If you already have great credit card habits, you can find better rewards and better rates elsewhere.
Journey® Student Rewards from Capital One® cash-back rewards details
The Journey® Student Rewards from Capital One® rewards you with 1% cash back on every purchase with no limit. You’ll also earn even more just for paying your bill on time every month. For each on-time payment, your rewards rate will go up by .25% for that month, rewarding you for using your card responsibly.
The only thing limiting your potential cash-back rewards each month is your credit limit. Student cards generally come with low credit limits as you build your credit history and responsibility. The Journey® Student Rewards from Capital One® rewards your responsibility with access to a higher credit line after you make your first five monthly payments on time.
Journey® Student Rewards from Capital One® fees
While this student card carries a high purchase APR, the fees are quite reasonable. There’s no annual fee, transfer fee, or foreign transaction fee. If a student wants to get a cash advance, the fee will be either $10 or 3% of the advance amount, whichever is greater. Finally, if a student is late on their payments, the fee is up to $39.
How does it compare to other student rewards cards?
The competition for the best student rewards credit cards is strong. To see whether the Journey® Student Rewards from Capital One® fits into your wallet, let’s see how it stacks up next to a couple of other popular student rewards cards.
Discover it® Student Cash Back card has no annual fee as well as a 0% purchase APR for 6 months. After that, the APR jumps to 19.49% Variable. You can earn 5% cash back at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com and more up to a quarterly maximum each time you activate. Plus, earn unlimited 1% cash back on all other purchases automatically. You’ll even get a $20 statement credit each school year your GPA is 3.0 or higher for up to the next five years.
The Journey® Student Rewards from Capital One® offers a better base rewards rate each month you make your payment on time.
Another option is the Citi Rewards+ Student Card, which also has no annual fee and a 0% APR period (this one lasts for seven months). You’ll earn 2x points at supermarkets and gas stations for the first $6,000 per year and unlimited 1x points on all other purchases. Plus, you’l get 2,500 bonus points after spending $500 in the first three months.
Overall, the Citi Rewards+ Student Card is a great option for students with good credit, while the Journey® Student Rewards from Capital One® is better for those with average credit or limited credit history. The base rewards for the Citi card are comparable with the opportunity to earn double points at gas stations and grocery stores. However, the Journey® Student Rewards from Capital One® wins for studying abroad with no foreign transaction fees while the Citi Rewards+ Student Card charges 3%.
The bottom line
The Journey® Student Rewards from Capital One® is an excellent choice for students who want to learn how to be rewarded for using a credit card responsibly. Built for students with limited credit history, it works well to earn a little cash back while you build enough credit to qualify for more rewarding credit cards with better rates.
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