Capital One Journey Student Review: A Leading Student Card

The Journey Student Rewards from Capital One credit card amps up the value for cardholders who want to earn more rewards than the typical student credit card offers. The debt-averse side of us values that cardholders are incentivized to pay bills on time and avoid debt so they can earn 1% cash back for that month when paying bills on time. Our Journey Student Rewards from Capital One review will help you learn if it’s the right for your needs.

This credit card is a good fit for: Students who want to earn cash back while building the financial habits that will help them achieve a good credit score.

Top perks

No annual fee

The target audience for this card is young consumers with limited budgets. Fortunately, Capital One gives them a pass on this not-uncommon charge in the credit card world.

25% bonus cash back

The base cash back rate is 1%, but a cardholder can bump that up to 1.25% if they are a timely payer. Each statement paid on time earns the higher rate of cash back. Not only does this bring in extra rewards, but it also encourages and builds good credit management for the user.

0.25% extra doesn't sound like much, but it can make a difference. If a customer spends $20,000 per year on the card but misses every payment, their cash back earnings would be $200 for that year. A timely payer would earn $250.

No foreign transaction fee

Planning on doing a semester abroad? Using your new credit to fund a jaunt overseas? If so, this card is a good travel companion, because it incurs no foreign transaction fee on any purchases outside of our borders.

No expiration on cash back rewards

The cash back you earn never expires as long as your account is open, so there is never any pressure or rush to redeem those earnings.

Numerous cash back redemption options

You have the flexibility of choosing statement credits, a check, or automatic disbursement to redeem cash back once a certain amount is accumulated, or on certain dates no matter the amount. This plethora of choices allow a cardholder to tailor the redemption method to their individual needs and is rare among competing cards.

What could be improved

No intro APR offer

It isn't unusual for student cards to have tempting intro APRs as low as 0%. This card has no such offer.

High standard APR

The regular APR is quite high compared to those of its rivals. Although this discourages late payments, which is a good thing, it can hurt the finances -- and that all-important credit profile -- of those who fall behind.

Given that this card is geared toward students, applicants with limited -- or possibly even no -- credit history may be able to obtain this card. Capital One classifies the credit level it requires to get this card as "average." It breaks this down to mean:

• You have a limited credit history (very common for young consumers).
• You've held a credit card or some other form of credit for less than three years.
• You might have defaulted on a loan within the preceding five years.

It's important to note that Capital One considers those to be only guidelines in a decision. The issuer will evaluate other factors to judge your creditworthiness.

• You're a student looking to establish credit
• You're trying to rebuild your credit
• You're worried about ending up in credit card debt

Journey Student Rewards from Capital One is a good foot-in-the-door credit card. It's also appropriate for those in credit-recovery mode. Most likely you'll first receive this card with a low credit limit, so it's nearly impossible to get in a deep debt hole with it. That, plus the elevated cash back rewards for timely payment, helps build those good debt management skills we all need.

However, past the beginner/recovery stage, this card probably isn't the ideal go-to, as is the case with any student credit card. Other credit cards aimed at the middle-of-the-credit market have fuller feature sets, better rewards programs, lower APRs, and juicier bonuses.

That said, this card is a very good instrument for getting there. Good credit habits start early, and that journey can begin effectively with this card.

Read more: Best Credit Cards for Young Adults

Our credit card methodology

At The Motley Fool Ascent, we rate credit cards on a five-star scale (1 = poor, 5 = best). Our rating criteria includes rewards rates, welcome bonuses, fees, and perks like travel credits and 0% intro APR offers to evaluate our ratings.

We combine these factors with an evaluation of brand reputation and customer satisfaction to ensure you're getting the best card recommendations. Learn more about how The Ascent rates credit cards.