Capital One Journey Student Rewards Card Review
As a college student, establishing your credit is critical to your financial stability. In addition to established your credit, you can earn rewards and enjoy interest-free financing. The more established your credit score is the better loan rates and insurance premiums you’ll get. This can help immensely later on in your life when you’re applying for apartments or car loans. A student card like the Journey Student Rewards can help reach those financial goals.
However, there are still eligibility requirements you’ll have to meet to obtain your student credit card. For example, you’ll need a steady income, and some credit history is a good thing. If you don’t have it, you could go an alternative route. We’re going to talk about the Journey Student Rewards credit card. We’ll also touch on why it may be more difficult to obtain a credit card, and alternatives you can check.
Journey Student Rewards Credit Card Pros
The Journey Student Rewards Has No Annual Fee
While many credit cards come with an annual fee, the Capital One Journey has a 0$ annual fee. This is a huge bonus, especially if it’s your first credit card. The $0 fee allows you only to use your card a few times a year. You won’t have to worry about trying to make your rewards or use outweigh the annual fee. For students especially, saving on an annual fee is huge because they generally have less month to spend.
The Journey Student Rewards card gives cardholders cash back on everything they buy. You’ll get a flat 1% cash back each month. You won’t have to keep track of revolving categories or staggered cash back tiers. It’s straightforward and easy to use. Even if you use it sparingly, it still adds up to decent rewards.
In addition to the 1% cash back, you can get a 0.25% rewards boost. All you have to do to get this reward is make your payments on time. If you schedule direct withdrawal or credit card text alerts, you have a good chance of remembering your payment. It’s also an incentive to make your payments and use your card responsibly. Make your payments on time and get a 1.25% cash back reward on everything you buy.
Credit Steps Program
The Capital One Journey card makes it easy to advance. You’ll start out with a low credit line when you first get the card. If you make your first five payments on time, you’ll get a higher credit line. If you’ve never had a credit card before, the first five months are like training. It’ll get you in the habit of making your payments and watching your spending.
Raise Your Credit Score
For students with a thin credit history, the Journey Student Rewards card can help. Opening a college student credit card will give you a stable base to build your credit with. If you make your payments on time and watch your credit utilization ratio, it’ll boost your score. It’ll also give lenders a solid credit history to look at when they’re considering you for other loans.
Comparing Student Credit Cards
Journey Student Rewards Cons
As you’re just starting out, almost every card will have a higher APR. This amount will add to your monthly balance if you carry one. The Journey credit card has an APR of 24.99%, and it’s variable. So, if your credit is low or nonexistent when you apply for this card, be prepared for a 24.99% APR.
While you don’t need excellent credit for the Capital One Student Credit Card, you do need an average one. To get this card, you’ll need a credit score that falls between 630 to 689. This can be a tall order if you don’t have a credit history, or if you have a lower credit score.
Journey Student Rewards Starts at a Lower Credit Line
You’ll typically start with around a $300 credit line with the Journey Student Rewards card. This lower credit line makes it harder to keep your credit utilization under 30%. Ideally, you should keep your utilization under 10%. It also makes it harder to purchase larger items. Even after you get an increase, it most likely will still be around $500 to $800 maximum.
Why It’s More Difficult to Get a Credit Card as a Student
Before the laws changed in 2010, it was very easy to get a student credit card. However, the Credit Card Accountability, Responsibility, and Disclosure (CARD) Act changed this. This brought on new requirements for students who wanted a credit card, and the number of student cards declined. Under this act, students had to meet these requirements if they were under 21:
- Credit card lenders can’t offer students perks to sign up. Things like keychains, t-shirts, frisbees, and bags were common before this act.
- Students must have an independent source of income. They must also have a parent or guardian co-signer.
- Lenders can not give students pre-screened credit card offers without consent.
Alternative Options to a Student Credit Card
If you don’t have a co-signer for the Journey Student Rewards card, there are other options. You can build your credit even if you have been rejected for a student credit card.
Secured credit cards require a deposit to start. This deposit becomes security for the lender. Secured credit cards are an excellent credit build tool. You’ll typically put $300 down, and this is your maximum credit limit. Some secured cards do offer room for advancement as well. However, most people switch to an unsecured card when their credit is high enough. You get your deposit back if you’ve made all of your payments and you don’t have a balance remaining.
If your parents have a credit card, they can add you their child as an authorized user. You’ll get their credit limit, and they’ll be responsible if you don’t pay your bill. So you may not even have to spend anything for your credit rating to improve with this method. Sometimes it’s enough to simply have authorized user status. Both you and your parents or guardians have the same credit line.
Bottom Line – Journey® Student Credit Card from Capital One®
The Capital One Student Credit Card is a viable option to help build your credit as a student. However, it is more difficult to obtain it since the CARD Act passed in 2010. So if you’re not able to get this card, a secured card or authorized user status are options. Whichever way you choose to build your credit, responsible use is the key. You’ll learn good financial habits and establish a solid credit history and a high credit score.
CreditFast has reviewed the best student credit cards on the market. Some of the credit card offers are from our advertising partners. CreditFast has objectively reviewed the features and benefits of each college credit card. We have chosen student credit card offers based on our editor’s recommendations.