What makes the Capital One® Journey® Student Rewards Credit Card For Credit Building unique is that you can get cash back while rebuilding your credit. In this review we will show you how you can use this card to establish or rebuild your credit without needing a secured deposit.
Capital One® Journey® Student Rewards
The Capital One Journey Student Rewards Card is a great tool to have when looking to start building your credit history.
You don’t need to put down a security deposit because it is an unsecured card for people with limited credit or just staring out.
There aren’t any processing fees, or an annual fee and if you make the first five payments on time you will get an automatic credit limit increase.
I created this Capital One Journey review so that you can understand how their card works, its benefits and short comings.
A+ Rating With BBB
Low Monthly Price
High Initial Work Fee
Not In Every State
What’s The Capital One Journey Student Rewards Card?
The Capital One Journey Student Rewards Card was created by Capital One mainly to help students learn about and build their credit history.
There is a “soft” pull on your credit report to find out if you are pre-qualified, and then a hard pull if you decide to apply for the card.
You get to see if you will be approved before you apply without it affecting your credit score.
This card will report to all three major credit card bureaus which in turn will help you build your credit history.
Since this card is unsecured, it also means that there isn’t any type of security deposit required to get approved for this card.
Capital one offers a wide variety of credit cards with multiple perks and rewards, you can read about the best Capital One credit cards in our review.
Who Is Capital One?
While Capital One might seem like a 100 year old company, they actually were founded in 1993.
They go by the name Capital One Financial Corporation and along with being a bank holding company they also focus on credit cards, auto loans and banking.
They are one of the largest banks in the U.S. by assets and helped with the growth of the credit card market.
Lastly they are the 2nd largest auto finance company in America.
What Makes Them Different?
What makes Capital One Different is that they offer a ton of additional benefits with their cards.
Along with reporting to all 3 of your credit bureaus, you will get free access to your credit report and score as well as an instant credit limit increase after making the first 5 payments.
Not to mention you will receive 1.00% cash back rewards on all purchases and 1.25% if you make all your payments on-time with you Journey Student Rewards From Capital One Card.
No Annual Fee
Usually, once the card has been activated, your annual fee will be deducted from your available credit.
However, there is no annual fee with the Journey Student Rewards Card from Capital One.
If you have a credit card with an annual fee, you may want to pay it immediately so that your card doesn’t report a balance.
If you plan to let the small fee report, be sure to make the minimum payment if one is required.
Capital One® Journey® Student Rewards Credit Card Basics
Below are some of the basic features of the Capital One Journey Student Rewards Credit Card:
- Card type: Unsecured
- Interest rate: 26.74% Variable
- Annual fee: $0
- Rewards: 1.00% Cash back on every purchase, pay on-time that month and boost it to 1.25%
- Security deposit: None
- Foreign transaction fee: 3% or $1.00, whichever is greater
- Credit reporting: Reports payment history to all three credit bureaus.
- Cash advance fee: $10.00/3%, whichever is greater
- Cash advance APR: 26.74% Variable
- Late payment fee: Up to $39.00
- Returned payment fee: Up to $39.00
- Over The Credit Limit: None
Be sure to pay your bill on-time each month so you will be eligible for the 1.25% cash rewards bonus!
Capital One Journey Benefits
The Capital One Journey Card is packed with several benefits that make it one of the best student rewards credit cards.
The main Capital One Benefits of this card include:
- See if you Pre-Qualify without harming your credit score
- Looking to build credit? We report to the major credit bureaus monthly
- Make your first five payments on-time you will receive a credit increase
- Receive 1.0% cash back rewards on every purchase or 1.25% if you make your payments on-time that month
- Track your progress with free online access to Capital One Credit Wise
Capital One® Journey® Student Rewards Credit Cards help you to establish a solid payment history with the ability for an automated credit limit increase.
What Is The Starting Capital One Journey Credit Limit
Your initial Capital One Journey credit limit will be determined by a number of factors including your credit history and income.
There is no way of predicting the credit limit you will be given.
Capital One Journey Credit Limit Increase
Another unique benefit about this card is that you don’t have to request a Capital One Journey credit limit increase.
The Student Journey Card by Capital One offers you an automatic credit limit increase after making the first five payments on-time.
One of the standard Capital One Journey Benefits is that they will periodically perform a Capital One Journey review on your account and award automatic credit limit increases.
What makes credit limit increases so great is that they allow you to:
- Decrease Your Credit Utilization
- Increase Your Available Credit
- Obtain New Credit Without Affecting Your Age Of Accounts
If you haven’t received an increase after the first 6 months I would call in to request a review.
Capital One Journey One Card Pros & Cons
Alternatives To The Journey Student Rewards Card By Capital One
An unsecured credit card through Capital One is a great option to start building credit history.
However, there are a few other options available for building or re-building your credit, and if you can, I would get them in addition to the Journey Capital One Credit Card.
Credit Builder Loan Through Self Lender
While these loans have a small monthly fee attached to them, they also pull your credit report for approval.
Just like with a Capital One card, Credit Builder Loans report to all 3 credit reporting agencies.
The major difference is that it is an installment loan and not a revolving loan, but once the loan is paid off, the funds will be sent back to you.
Catalog / Merchandise Account Through Fingerhut
Another great alternative are Catalog/ Merchandise Accounts.
While these types of accounts require a credit pull, it is very easy to get an approval and to start building your credit profile.
These accounts will report to all 3 credit reporting agencies; however, you can only use the credit at the Catalog or Merchandise company that gives you the credit.
One of the best catalog accounts comes from Fingerhut, we wrote a detailed review here.
Steps To Take After You’re Approved
The real work starts once you have been approved for your Capital One® Journey® Student Rewards Credit Card.
Monitor Your Credit
One of the most overlooked areas of building credit, is monitoring your credit.
This is truly your first line of defense when trying to build or rebuild your credit.
You should try to find a service that allows you to monitor all 3 of your reports.
If your application goes to “Pending” status it doesn’t mean Declined. Usually, more information may be needed.
Make On Time Payments
Making on time payments sounds like a super simple thing to do; however, we all live in the real world where things almost never go as planned.
Be sure, no matter what, to make your payments on time because it is super important and is one of the largest factors in your credit score.
No matter what, avoid late payments.
Keep Credit Utilization Low
Another factor to consider is credit utilization, you really want to keep this under 3% of total credit if you can but try to never get it over 15%.
For example, if your Journey card has a $300 limit and you spend $60.
Spending $60 on a $300 card limit means you are utilizing is around 20% of your credit on that card and it is above the recommend credit utilization percentage, so be mindful of how much you spend.
How Do I Cancel My Capital One Journey Credit Card?
You can cancel your account at any time by contacting their Customer Service Department at the phone number listed on your billing statement or on the back of your credit card.
Is There A Fee For Closing My Account?
Outside of the fees associated with your remaining balance, there is no fee for closing your account.
I would recommend keeping the card active as long as you can, there really isn’t a reason to cancel the card any time soon.
Taking Action On Your Credit
Hopefully, you found this Capital One Journey Review helpful because rebuilding your credit can be difficult and confusing.
There is no better time than now to get things started and the sooner you get your card setup, the faster it will hit your reports and start helping build your credit.
Having the card in your wallet is going to feel great, but growing your credit is going to feel even better.
Start rebuilding your credit today with a Capital One® Journey® Student Rewards Credit Card.
Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.