Overview
The Capital One Journey Student Rewards Card is designed to help students build their credit.
Unlike other student-centered cards, this one also offers a cash-back reward program.
Other key benefits of the Journey card include:
- No foreign transaction fee (for students who love to travel!) and no annual fee.
- Variable APR of 20.49% for both new purchases and cash advances – something we are not seeing with other student cards.
- Making on time payments will unlock higher credit lines.
Additionally, our research shows that Capital One is more likely to extend credit than other student oriented cash back cards. And this includes students attending 2-year, as well as 4-year, colleges.
The combination of cash-back rewards, low fees, and tools to help students build credit make the Journey Rewards Card a great first credit card for college students when you compare it against the competition.
How the Journey Card Works
Students receive cash back on every purchase that they make with the Journey credit card.
The card also encourages students to develop good credit habits, rewarding them with bonus cash back every time they pay their monthly bill on time.
In total, you receive 1 percent cash back on all purchases you make with this card. And you also receive a cash-back bonus of 25 percent every time they pay their monthly bill on time. This allows you to earn up to 1.25% cash back on all your purchases – without worrying about rotating rewards categories.
Students who use this card wisely, can improve their credit scores, gain access to more credit, and receive cash back along the way.
And a great benefit of developing good credit habits whole in college is you can then apply for cards that have lower interest rates and stronger rewards programs (including some other great cash back and travel rewards cards from Capital One).
Other Travel and Shopping Benefits
We know students love to travel. So another reason we recommend the Journey credit card is that there is no foreign transaction fee. That saves you a lot of money when you study abroad or backpack around the world after college.
On top of that, it comes with Visa Platinum benefits, including:
- Extended warranties on new purchases
- Auto rental collision damage coverage
- Travel accident insurance
- Fraud coverage if your card is ever lost or stolen
Interest and Fees
Because this card is designed for users who lack a long credit history, it comes with a purchase interest rate and cash advance interest rate of 20.49 percent.
Cash advances also incur a fee of the greater of $10 or 3% of the advance.
These interest rates and fee actually are at the bottom of the range for consumers with average, fair or limited credit. However, if you already have good credit, you may be able to find a student card that offers slight better rates.
And when you also take into account that there is no annual fee and no foreign transaction fee, the Journey Student Rewards card is a low fee card in the space.
In fact, the only thing it is lacking is a balance transfer offer. This is offset by the fact that Capital One does not charge the typical 3% to 5% balance transfer fee. And, presumably, most applicants will not have existing balances to transfer over as this will be their first credit card.
Students will be charged up to $35 when they make a late payment or send in a payment that needs to be returned.
The Bottom Line
The verdict on Capital One’s Journey Student Rewards Credit Card is that provides great benefits to students looking to build their credit.
The rewards and benefits available with this card are usually not available to consumers with average or limited credit.
We think this is a great credit card for college students.
