Charles H. Miller
Capital One has created a special card for students with average credit rating, which means a rating in the 630-689 range. Called Journey® Student Rewards, the card includes no annual fee and no foreign transaction fee. It, however, offers up to 1.25% cash back on all purchases. Here are the details…
Highlights
- The card for students with “average” credit rating
- Up to 1.25% cash back on all purchases
- Visa Platinum shopping and travel perks.
- 20.24% variable APR
- No foreign transaction fee
- No balance transfer fee
- No annual fee
How It Works?
Cash Back: Get 1% cash back on all purchases, plus an additional 0.25% bonus every month that you pay on time, for a total of 1.25% in cash back. There is no limit to the amount of cash you can earn. The cash can be redeemed either as a statement credit or check starting at $25. There is an automatic redemption option on amounts or dates you define, as well as the ability to redeem for gift cards.
Rewards for students with average credit rating: Just because you don’t have the best credit rating, that doesn’t mean you can’t get something back for every dollar you spend. The Journey® Student Rewards from Capital One® targets students with credit score between 630 and 689.
Credit line increase: When you make first five monthly payment on time, you may be eligible to receive a credit line increase through Credit Steps.
Visa Platinum Benefits: These would include a number of shopping and travel perks that make those two activities that much better, offering protection along the way. More precisely, you get 24-hour travel assistance services, extended warranty, auto rental and travel accident insurance.
APR: It is 20.24% variable, meaning you are best off paying your balance in full and on time.
Annual fee: There is no annual fee, which is something all students can appreciate.
Costs
- 20.24% variable APR on both purchases and balance transfers
- 0% Balance Transfer Fee
- 0% Foreign Transaction Fee
- $0 Annual Fee
Pros
- Simple card that rewards financial responsibility. You earn 1% cash back immediately and another 0.25% when you pay your balance on time.
- Ability to increase your credit – by making first five monthly payment on time.
- No foreign transaction fee makes this card great to use even while visiting other countries.
Cons
- High APR pretty much forces you to pay your bills on time. You don’t want to carry a balance with 20.24% APR.
- No introductory APR – and it would be nice to see it, to help students get out of debt or make some bigger purchase.
Is This The Card For You?
The Journey® Student Rewards from Capital One® is made for students who for one reason or other end up with an average credit score; it is designed to help them get something back from every dollar they spend. The card is designed to promote financial responsibility, or “punish” those that don’t take good care of their finances. It comes with a rather high APR of 20.24%, but has no annual fee, and the same goes for foreign transaction fee. Also, those making payments on time will be able to increase their credit line.
