Secured Mastercard From Capital One Vs Capital One Journey Student Rewards Credit Card
The Secured Mastercard® from Capital One® is a secured card, which means you have to put down a deposit first.
The minimum credit line is $200, and you can qualify with a deposit as low as $49. If you have very bad credit, youll need to put down a full $200.
That said, theres no annual fee, and you get your money back when you close your account. Not only that, but you can increase your limit by depositing more money.
Best Student Credit Card For Cash Back
- No annual fee
- Welcome Offer: 5% cash back on all purchases for first 3 months, plus plus a $50 cash back bonus in your first year
- 3% cash back on the first $500 spent groceries and 1% on recurring bills
- 0.5% cash back on everything else, plus an additional 4.5% bonus cash back up to a maximum of $1,500 spent in the first 3 billing cycles
- Terms and conditions apply
Is The Capital One Journey Student Credit Card Worth It
As you can see, this is a good card for building credit. That said, there are 26.99 reasons you might not want to use it this card carries a hefty 26.99% variable APR, one of the highest interest rates on the market.
Whether or not this is a problem depends on how youre using the card. As long as your bill is paid off at the end of each month, you wont have to worry about interest.
On the other hand, if you carry a balance from month to month, that interest will rack up in a hurry. This can even happen to responsible borrowers.
You may need to charge an emergency car repair or other unexpected expenses. In that case, youll be paying a significant penalty.
How To Use The Journey Student Rewards Card:
- You can transfer a balance with no fee, but we wouldnt recommend it due to the high APR .
- Make your payments on time to earn extra rewards points and increase your credit limit.
- Use the text and email alerts to stay on top of your due dates.
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All reviews are prepared by CreditCards.com staff. Opinions expressed therein are solely those of the reviewer and have not been reviewed or approved by any advertiser. The information, including card rates and fees, presented in the review is accurate as of the date of the review. Check the data at the top of this page and the banks website for the most current information.
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Partner Offer: carefully review product terms on Capital One’s site before applying
Which Is The Best Student Discount Card In The Uk
An NUS card is one of the most popular student cards in the UK. Its run by the National Union of Students, so is aimed at helping students have an easier and cheaper life. Operated by the NUS is the latest NUS Extra card which will entitle you to student discounts in loads of the major high street stores.
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Bank Of America Customized Cash Rewards Credit Card For Students
This card is another great choice, as it offers a sign-up bonus and higher rewards than the Journey Student Rewards Card. The Bank of America Customized Cash Rewards for Students offers a $200 cash bonus after making at least $1,000 in purchases in the first 90 days.
You also earn 3% cash back in a category of your choice and 2% cash back at grocery stores and wholesale clubs and 1% cash back on all other purchases
Extra Cash Back for Paying on Time
$20 Good Standing Rewards
It’s rare to find a credit card that offers two bonuses. The Chase Freedom® Student credit card comes with an annual bonus for responsible cardholders. As long as your account is in good standing, you’ll earn 2,000 bonus points, which you can redeem for $20 each anniversary year for the first five years of card ownership. To be in good standing, you must have an open account that isn’t in default.
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Fico Credit Score Factors And Their Percentages
|FICO credit score factors|
|The average age of your active credit lines. Longer histories tend to show responsibility with credit.|
|10%||The different types of active credit lines that you handle|
|New credit||10%||The new lines of credit that you’ve requested. New credit applications tend to hurt you score temporarily.Learn more about FICO credit score|
Paying on or before the due date each month can help your score and it can put even more money back in your pocket. When you pay on time, Capital One increases your cash back rewards rate to 1.25%.
That means if you charge $500 every month and pay on time, youll earn $75 a year in cash back instead of $60. Thats a nice incentive to keep track of your due dates each month.
Tip: If youre worried about your credit taking a hit because of a late payment, set up automatic payments so youll never have to worry.
Is This The Right Card For You
The Journey Student credit card from Capital One offers cardholders a simple way to build credit and earn a small return for their spending.
Use it for everyday purchases like gas and groceries, and the occasional late-night meal excursion. While the returns are relatively low, it’s better than what some student cards provide. And if you subscribe to a lot of streaming services, having $5 back each month for a year won’t hurt.
For students looking to learn how to responsibly use a credit card, this is a good place to start. It’ll reward you for paying on time, and help you build the necessary habits before moving on to cards that require a bit more know-how.
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Journey Student Rewards From Capital One Vs Discover It Student Cash Back
Not only does the Discover it® Student Cash Back meet the Capital One Journey Students base rewards rate, it also offers 5% cash back on rotating quarterly categories up to $1,500 each quarter when activated. To match the 5% annual maximum with its bonus 0.25% cash back for on-time payments scheme, the Capital One Journey would require close to $100,000 in spending, assuming that the student is able to max out the 5% categories with the Discover it® Student Cash Back. All other eligible purchases earn 1% cash back.
The Discover it® Student Cash Back might not be the best student credit card, but its a lot better than the Capital One Journey Student.
Misconceptions About The Journey Student Card
First off, dont let the name fool you. The Journey Student credit card is available to anyone looking to increase their credit score, not just students.
Secondly, whereas most other student cards expect their applicants to have a limited or nonexistent credit history, Capital Ones student card requires Average credit, meaning at least 3 years of either having a card in your name or having been an authorized user. This isnt uncommon to see in credit cards with rewards so if you have absolutely zero credit history to your name, you may need to look for a student card with fewer frills.
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Pros And Cons Of Student Credit Cards
Students may be able to qualify for a credit card despite having new or thin credit
Fraud protection can make credit cards safer than using a debit card
Access to rewards that cater to students
Good interest rates
Certain student credit cards may have high interest rates
Student credit cards arent a long-term solution
Heres When To Pay A Credit Card:
- If your credit utilization is 30% or less and you pay in full every month, pay your credit card bill by the due date listed on your monthly account statement.
- If your balance is more than 30% of your credit limit, pay your credit card bill before the billing period closes to reduce your credit utilization, then pay the remaining balance by the due date.
- If youre carrying a balance from month to month, pay off your full credit card balance as soon as possible to save on interest.
Its a good idea to set up automatic payments with your credit card issuer so you dont have to worry about when to pay your credit card bill. Doing so will automatically make a payment from a linked bank account every month on the due date, or a day of your choice before that. You cant be marked late unless your account has insufficient funds. And even with automatic payments set up, you can still make additional payments any time you want.
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How Much Are The Rewards Worth
The Journey card earns cash back, so your rewards are worth an equivalent 1 cent or 1.25 cents per dollar, depending on your rate.
Capital Ones terms on other redemption options such as Amazon Shop with Points state that your reward value may vary. However basic cash back is the most versatile choice and will always retain its full value.
Which Cards Compete With Capital One Journey For Students
Depending on their credit rating, students have many choices when it comes to credit cards. They can opt for regular rewards cards designed for people who are building their credit or cards specifically designed for students.
If we narrow down the competitors to student-marketed cards, the main competitors of Journey include Discover it Student Cash Back, the Citi Rewards+ Student Card, and the Bank of America® Cash Rewards credit card for Students.
All three of these cards offer more generous rewards than the Journey card, with Discover it Student Cash Back leading the pack. Discover it Student Cash Back gives students 5% cash back on their first $1,500 in purchases in rotating quarterly categories after enrollment, and 1% cash back on everything else.
Discover also matches the cash back total after the first year of card membership, giving this card a lot of bang for the buck. Plus, good students earn a $20 statement credit for each school year their GPA is 3.0 or higher for up to five years. Like Capital One Journey, Discovers student card has no foreign transaction fees though bear in mind that Discover may not be as widely accepted as other card types outside the U.S.
Citi Rewards+ Student card also has a welcome bonus. Youll earn 2,500 points after you spend $500 with your card within the first three months of account opening.
Bank of America offers a $100 online cash rewards bonus after you spend $1,000 in purchases within 90 days of account opening.
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Review: Is The Capital One Journey Student Credit Card The Best Card For You
If you’re studying for finals, applying for internships, and thinking about what you’ll do after graduation, you’re setting yourself up for success when you no longer call yourself a student. In addition to earning top grades, though, you’ll need to establish strong credit to access all the adult things you’ll eventually need like a car loan and a mortgage.
Read more: The best credit cards for students in 2021
To determine whether the Journey Student Rewards from Capital One is right for you, the first question to consider is where you are in your own journey: Is this your first credit card? If so, this can be a solid option, as it’s designed for those with “fair” credit.
That may mean you have a limited credit history, which likely means you may struggle to get approved for more rewarding credit cards. If you already have a credit card and you have demonstrated your ability to pay your bill, though, you will want to compare other options that offer more rewards and perks.
Next up in your thought process: Are you planning to travel abroad? The Journey Student Rewards from Capital One does not charge any foreign transaction fees. If you’re gearing up for an exchange program or plan to spend a few months of your summer outside the US, you definitely want to avoid the standard 3% foreign transaction fee that comes with many other entry-level credit cards.
Read more: The best starter credit cards in 2021
Best For Gas Stations And Restaurants
Earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter. Plus, earn unlimited 1% cash back on all other purchases automatically.
Discover will match all the cash back you’ve earned at the end of your first year.
0% for 6 months on purchases
3% intro balance transfer fee, up to 5% fee on future balance transfers *
Foreign transaction fee
- Generous welcome bonus
- Cash-back program limits earnings: 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter, then 1%
- You must be a U.S. citizen and college student to apply for this card
Who’s this for? If you want all the perks of a Discover card but you don’t want to deal with activating bonus rewards categories each quarter, you should consider the Discover it® Student chrome. It has a strong rewards program for college students frequently filling up their gas tank or dining out, with 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter, then 1%. Plus, earn unlimited 1% cash back on all other purchases automatically.
Like the Discover it Student chrome, this card doesn’t charge foreign transaction fees, which makes it a good choice for students studying abroad.
You must be a U.S. citizen over 18 and enrolled in a two- or four-year college in order to qualify for this card.
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Bankrates Take: Is The Journey Student Rewards Card From Capital One Worth It
The Journey Student Rewards Card from Capital One is a worthwhile choice for first-time cardholders who want an easy-to-handle cash back card for every occasion.
Its features focus on giving you peace of mind when youre shopping or traveling, but the high ongoing APR and relatively low rewards rate might make other student cards more valuable for some.
All information about the Bank of America® Cash Rewards Credit Card for Students and Bank of America® Unlimited Cash Rewards Credit Card for Students has been collected independently by Bankrate and has not been reviewed or approved by the issuer.
Chase Freedom Student Credit Card Vs Chase Freedom Unlimited
Verdict: Great for balance transfers and financing large purchases
Chase Freedom Unlimited® could be the right card for you if you have existing credit card debt collecting high interest charges. The card comes with a 0% Intro APR on Balance Transfers for 15 months and 0% Intro APR on Purchases for 15 months . You can transfer over your balance or fund large purchases and pay them off over time without worrying about additional fees.
The card also features a larger sign-up bonus and higher cash back rates in several popular spending categories than Chase’s student card. Plus, you’ll still enjoy many of the same perks like free credit score access, purchase and extended warranty protection, and trip cancellation/interruption coverage.
How does it compare?
- Annual fee: $0
- 0% Intro APR on Balance Transfers for 15 months and 0% Intro APR on Purchases for 15 months, then 14.99% – 23.74% Variable
- Rewards earned/$1 spent: Enjoy 5% cash back on travel purchased through Chase Ultimate Rewards®, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and 1.5% on all other purchases
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Should You Apply For The Chase Freedom Student Credit Card
The Chase Freedom® Student credit card is a solid option for any student looking for a starter credit card or interested in building credit. While you’re rewarded for card purchases with the Chase card, you can probably maximize your rewards earning better with other top student credit cards.
If you lack the credit history to qualify for the Chase Freedom® Student credit card, you can also look at other starter credit cards which may have less stringent underwriting requirements. There are also that provide a gateway to credit building, often without requiring a credit inquiry.
The information related to Discover it® Student Cash Back and Journey Student Rewards from Capital One has been independently collected by ValuePenguin and has not been reviewed or provided by the issuer of this card prior to publication.
These responses are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.
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