Journey Student Credit Card: These are designed to help students who are new to credit get into good habits. You also earn extra credit for being smart swipers. You don’t even have to be a student to qualify.
If you have a limited credit history and want to enter the world of credit with ease and no annual fees. Having all of this with flat rewards could be a good option for you.
The Capital One Journey Student Credit Card offers a sensible choice for students and others looking to build credit. The card allows you to earn modest rewards while incentivizing on-time payments and making it easier to track improvements in your credit score.
Below is some essential information you need to know about the capital one travel student credit card, its advantages, a few disadvantages, and why it is better for students.
Capital One Travel Benefits
The main benefits of the Capital One Journey Student card come in the form of credit-building tools and travel benefits. Just 1 % cashback on all purchases — which goes up to 1.25 % each month you make an on-time payment — that might not be very generous, but it’s better than many competing cards which offer no rewards to students.
Capital One Travel 1 The cashback percentage on all purchases is at the low end of most cash-back credit cards, but you can increase the cash-back rate to 1.25 % in any month you make a punctual payment.
Discover it® Chrome, another student credit card, offers 2 % cash back at gas stations and restaurants on up to $1,000 in combined purchases each term. It also matches any cash back you earned at the end of your first year.
Increase your credit over time
The Capital One Journey Student card is a good card to help students establish a good credit history. Although you can’t start with a high credit limit, you can get an increase by making five monthly payments on time.
Having access to more credit can help boost your credit score, which is affected by the amount of available credit you have versus the amount of available credit you use.
Capital One’s CreditWise tool also helps you track your credit profile by giving you insight into the factors that drive your score up and down. This allows you to make smarter financial decisions that will benefit your credit report in the long run.
The Capital One Journey Student Card also shines when it comes to travel rewards by offering many of the same benefits as some of the higher-end Capital One cards, including:
- No foreign transaction fees: Use your card for free when traveling abroad.
- 24-Hour Travel Assistance Services: If you lose your card, Capital One can provide you with a cash advance and an emergency replacement card.
- Rental Car Insurance: You’re covered for damage from theft or accident if you pay for a car rental with your Capital One card. This can save you up to $9 per day if you decline coverage from the car rental company.
- Travel Accident Insurance: Use your credit card to pay for your airfare and enjoy automatic Covered Loss Insurance, to get coverage or covered losses at no additional cost.
- Roadside Assistance: Get help with auto-related emergencies (i.e. changing tires and towing).
Capital One also offers Journey Student cardholders some shopping perks. These include:
- Extended Warranty: Eligible items purchased with your card receive additional protection at no charge, provided the original manufacturer’s warranty lasts three years or less.
- Eno’s virtual card numbers: You can use virtual card numbers while shopping online to keep your real card number private. This helps protect you against identity theft or data breaches.
Why it’s better for students
If you’re a student with a limited credit history, the Capital One Journey Student Credit Card is like taking an introductory credit course.
The straightforward fixed rate rewards program allows you to earn money for your daily expenses. Even better, you will get extra rewards bonus for making payments on time every month.
Your credit line will probably start low, but the good news is that you can move to a higher credit limit fairly quickly if you play your cards right.
While other student cards in this category offer rewards programs with higher cashback rates, or other benefits such as introductory APR periods or sign-up bonuses, these programs may seem a bit advanced for “first-year credit students” to manage. Capital One’s card makes it simple for those just starting on their educational credit journey.
- A Path to Building Credit: Capital One’s Journey Student Credit Card offers a minimum line of credit of $300, which barely pays for a college textbook. However, after you make the first five monthly payments on time, you’ll activate Capital One’s Credit Steps (a program to help you transition to an unsecured card over time), which may increase your credit limit.
- Rewards for good credit habits: The 1% cashback on all purchases isn’t mind-blowing, but it also doesn’t require a night of cramming to figure out how to maximize point value. Plus, you can increase that income to 1.25% just by making payments on time, a good incentive to promote healthy credit habits.
- No pesky fees: Some cards for new credit card users, such as secured cards, usually have annual fees, but student cards (including this one) don’t. You can also use Capital One’s Journey Student Credit Card without incurring a foreign transaction fee, which is important if you plan to study abroad or travel outside the United States.
- High APR: Although listed as a disadvantage, a high APR is a moot point if you manage to pay your balance in full each month. If you think you have a balance, consider a different student card with a lower APR instead.
- No incentives for new cardholders: While some student cards offer a learning curve in the form of an introductory 0% APR on purchases for a few months, you won’t get it here. You also won’t earn sign-up bonuses as some other cards offer.
Earn points and rewards
The appeal of Capital One’s Journey Student credit card lies in its flat-rate cash back structure. It’s designed to be a no-brainer way to earn a few dollars for your expenses, plus a little extra for responsible payments.
You can find student cards with higher reward rates, but these involve rotating categories and somewhat complicated redemption options. Here, your income is more predictable. For example, if you spend $500 a month and pay your bill on time, that will earn you $75 for the year ($5 a month = $60, and the 25% bonus make that $75).
Redemption of rewards
Redeeming is simple with the Journey student credit card. You can get your money back for any amount at any time as a statement credit or as a check. If you are considering closing your account, however, redeem what you have earned or you will lose it. You can also set up automatic repayment when you reach a certain date or a specific income amount.
If you’d rather trade for something other than cash, you can get gift cards or credits for past purchases, but the trade-in value with these options may vary.
In conclusion, if your main goal is to build credit and you don’t mind a less generous rewards program, the Capital One Journey Student card is a decent option.
The increased credit limit and bonus cashback provide a great incentive to help you make all payments by their due date, while CreditWise gives you additional tools to improve your credit score.
However, there are more generous options for cashback on everyday spending, so weigh your options before deciding which student credit card is right for you.