updated May 10, 2016
If you are a parent looking for a credit card for your child, or are a student who is new to the whole credit card game and would like to build credit history and earn rewards, read on.
In this detailed review of Journey® Student Rewards from Capital One® we will compare this card to other top student credit cards, and tell you exactly what it is, and what it is not.
It has no annual fee! You will receive all the benefits and rewards this card offers without having to pay any annual fee.
You earn 1% cash back on all your purchases. This benefit lets you earn cash rewards on practically all of your spending, whether you spend money on textbooks, food or shampoo. For example, if you spend $400 each month, you will earn $4 cash back. Your cash rewards will really add up over time.
You get a 25% bonus on the cash back you already earn each month from your spending each time you pay your bill on time. This basically rewards you just for paying on time! So for example, if you spend $400 each month and pay your card bill on time, you will earn $4 cash back, plus another $1 bonus cash back (25% of $4 cash back), giving you a total of $5 cash back for that month. This bonus cash back will appear on your statement two months after the payment that was made on time. So altogether you can earn a total of 1.25% cash back.
You can redeem your cash rewards in different ways, including as a check, statement credit or gift cards. The choice is yours: you can choose to get cold, hard cash, or apply your cash rewards towards your balance, or redeem for a gift card to surprise someone. You can even set up automatic redemption if that's what works best for you to collect your cash back rewards.
Get your cash rewards anytime you want. There are 3 ways you can redeem your cash rewards: 1) call their Rewards Center toll-free, 2) do it online at the Rewards website, or 3) set up automatic redemption whenever you have reached a certain amount.
Your rewards don't expire and there is no limit to the amount of cash back you can earn. If you want to save up for some special occasion, you can accumulate all the cash rewards to redeem at a later time. No worries about when your rewards are going to expire and there's no hurry to redeem them as you can redeem whenever you like.
Access a higher credit line after you make your 5 first monthly payments on time. This is a great card feature. To help you make your payments on time, this credit card lets you choose your monthly due date so that you can pick the date that is most convenient for you.
No balance transfer fee. This allows you to transfer your existing card debts (if any) from one card account to this one without having to pay any fee whatsoever. However, you should only shift your debts to this card if you are currently paying a higher interest rate than the one charged by this card. This card has a 20.24% variable APR.
Fraud coverage if your card is stolen or lost. This means that if your card is lost or stolen and is used to make purchases or cash advances, you won't have to pay the card issuer for what was spent fraudulently.
You get free text and e-mail alerts to keep you informed. This is a great advantage as you can be informed of your spending and can keep track of your finances more closely.
It gives you $100,000 of travel accident insurance. If you pay for your travel tickets in full with this Visa Platinum card, you will be covered automatically up to $100,000 in the event of death or dismemberment.
Auto rental insurance which will cover the damage or collision of the qualified vehicle you're renting. Just make sure to pay for your auto rental in full with this card.
Extended warranty protection. You will get up to 1 additional year of free warranty on eligible items you purchase with this card if the item comes with a U.S. repair warranty of 3 years or less. This is a good benefit that comes with a Visa Platinum card especially when you purchase electronic goods.
24-hour emergency assistance and card replacement which will provide you with the help you need when you need it. This assistance is only a phone call away.
It has no foreign transaction fee means that when you use your card to make purchases (online or in person) from a merchant outside of the US, you won't be charged an extra fee.
No introductory APR on purchases or balance transfers. You start off with a 20.24% variable APR on purchases and balance transfers if you don't pay your bills in full by the due date every month. To avoid paying any interest, just make sure to pay all your bills on time each month!
Discover it® for Students is the student version of the popular card from Discover. You earn 5% cash back (up to the quarterly maximum of $1,500 when you sign up) in bonus categories that change each quarter. These categories are generally pretty practical, like gas and restaurants). You earn 1% cash back on all other purchases. So even if you don't spend in the 5% categories at all, you will still earn the same amount of cash back on all purchases that you get with Journey® Student Rewards from Capital One®. At the end of your first year, Discover matches all the cash back you've earned, automatically (welcome offer only for new cardmembers). Journey® Student Rewards from Capital One®, on the other hand, does not have a welcome offer at all. Just to keep you on track, Discover also rewards you with $20 cash back every school year in which your GPA is 3.0 or higher, for up to the next 5 years. This card has no annual fee, just like Journey® Student Rewards from Capital One®. Plus, you get no overlimit fee, no foreign transaction fee, no late fee on your first late payment, and paying late won't raise your APR. However, making a late payment will damage your credit rating so don't do it. Unlike Journey® Student Rewards from Capital One®, this card does have a introductory low APR rate (0% intro APR on purchases for 6 months followed by 13.24% - 22.24% variable purchase APR). This card has useful features like the Freeze It℠ on/off switch which lets you prevent new purchases, cash advances & balance transfers on misplaced cards in seconds by mobile app and online. However, it lacks the travel and shopping protection that you get with Journey® Student Rewards from Capital One®. If you are a disciplined person and know how to use an introductory APR and high cash back without overspending or missing a payment, then this is a very rewarding card to use. If not, you might be better off with the more limited Journey® Student Rewards from Capital One® which gives you a 25% bonus on cash back earned when you make your payments on time.
Discover it® chrome for Students is a good cash back credit card to use if gas and restaurant dining make up a significant part of your budget. You earn 2% cash back on up to $1,000 in combined purchases at gas stations and restaurants every quarter. You don't need to enroll or activate cash back in order to earn it. As soon as you start using the card you will earn that cash back. Plus, you earn 1% cash back on all your other purchases. This card also gives you 0% intro APR on purchases for 6 months, with 13.24% - 22.24% variable purchase APR after. It has no annual fee. If you drive or eat out much at all, this card will probably get you more cash back than Journey® Student Rewards from Capital One®. If not, you might be better off with the 1% cash back you earn on all purchases with the Capital One card, plus the 25% bonus on cash back earned which you get when you pay your Journey® Student Rewards from Capital One® bills on time.
Journey® Student Rewards from Capital One® may not have the highest cash back rate around, but it does offer bonus cashback which helps motivate you to use your credit smartly. It also has better travel and purchase protection benefits than many other student credit cards.
Journey® Student Rewards from Capital One® is a good choice of credit card for students who want to build a credit history while in college, and also to earn rewards at the same time on all their spending. It's a great advantage for students to already have a credit history by the time they graduate from college since many employers in the U.S. use credit history as part of the hiring process, and banks consider it before granting loans.
There are cards that offer higher cash back on some purchases, but if you want to play it safe then this card might be a better choice because it does not encourage you to carry a balance by giving you an introductory low APR period, it slams you with a high penalty fee if you pay late (which motivates you to pay on time) and rewards you with a 25% bonus on your monthly cash back earnings when you make your payment by the due date each month. In short, Journey® Student Rewards from Capital One® is the perfect teacher to accompany you on your journey to good credit.
Click here to view the details of Journey® Student Rewards from Capital One® now.
Katrina Gutierrez is a writer at GET.com, a lifestyle and personal finance website. Email: email@example.com.
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Cards are rated by our team based primarily on the basis of value for money to the cardholder. The GET.com team rates each card based on its annual fee, rewards, benefits, bonus, introductory APR, ongoing APR, flexibility (in how its benefits can be used and how rewards are earned and redeemed), and other card features.