If you’re a college student, this is a good time to build a great credit score that can help you when you need to buy a car, rent an apartment or maybe even get a new job. The Journey Student Rewards from Capital One is a cashback rewards card that is designed for students looking to start their credit voyage. Whether you’ve never had credit before and are looking for a first credit card or you’ve been an authorized user on a parent’s card and now you’re ready for your own, the Journey Student Rewards from Capital One is a solid choice. We’ll break down what it offers and offer up an alternative student credit card for comparison.

• Cash back on every purchase

  This card earns 1% Cash Back on all purchases; 0.25% Cash Back bonus on the cash back you earn each month you pay on time; 5% Cash Back on hotels and rental cars booked through Capital One Travel (terms apply). Having a bonus rewarding you for when you pay on time is a good incentive for students who are just learning how to responsibly manage credit.

  There are four ways to redeem your cash back:

  • As a statement credit
  • As a check
  • As credits toward previous purchases
  • As gift cards

  You can also set up automatic redemptions, either at a set time each calendar year or whenever your rewards reach a certain threshold ($25, $50, $100, $200, $500 or $1,500).

  Rewards don’t expire (though if your account is closed, you’ll lose rewards you haven’t redeemed) and there’s no limit to how much you can earn on purchases.

• Chance to earn a higher credit limit

  If approved for the card, Capital One will set your initial credit limit after reviewing your application and considering your ability to pay. The minimum credit line you’ll get is $300. Whatever your starting limit, cardholders can be automatically considered for a higher credit line in as little as six months. You’re also able to ask for a credit line increase after having an account open with Capital One for at least three months and showing good payment history and utilization. Paying your bill on time every month is also the most important thing you can do to build and maintain a good credit score.

• $0 annual fee

  You don’t have to pay a fee to carry this card, since the annual fee is $0. That’s a good thing for college students on a tight budget.

• Foreign transaction fee: None

  If you’re planning to study abroad, this is a great card to take with you. You don’t have to worry about being charged a foreign transaction fee on each purchase you make outside the United States because there is none. Other cards may charge up to 3% for each purchase you make abroad with the card.

• Low rewards rate

  If you’re making all your payments on time with this card, you’ll earn 1.25% cash back per $1 spent. There are other credit cards that earn from 1.5% cash back on every purchase to 5% cash back in rotating quarterly categories. However, if your main focus is establishing a solid credit history, earning rewards may not be your main focus.

• Rewards not earned all at once

  The way this card’s rewards structure works is that you earn 1% Cash Back on all purchases; 0.25% Cash Back bonus on the cash back you earn each month you pay on time; 5% Cash Back on hotels and rental cars booked through Capital One Travel (terms apply). Many rewards credit cards earn rewards after making a purchase, rather than making the cardholder wait for a bonus after payment. However, if you need an incentive to stay on top of your payments, the rewards structure of the Journey Student Rewards from Capital One could be a good thing.

• High APR

  The interest rate on this card is 29.74% (variable), so you want to avoid carrying a balance from month to month. Pay on time and in full every month to avoid incurring expensive interest charges.

Compare it to the Discover it^® Student Cash Back

If earning a higher cashback rewards rate than what’s offered by the Journey Student Rewards from Capital One, another popular student credit card to consider is the Discover it^® Student Cash Back. It earns 5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, and gas stations, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases – automatically

As long as your spending patterns match up well with the 5% categories and you don’t mind having to manually activate the new categories each quarter, you can earn significant value from the Discover it^® Student Cash Back. Plus, there’s a unique sign-up bonus for new cardmembers: Unlimited Cashback Match – only from Discover. Discover will automatically match all the cash back you've earned at the end of your first year! So you could turn $50 cash back into $100. Or turn $100 into $200. There’s no minimum spending or maximum rewards. Just a dollar-for-dollar match.

However, if you plan to travel abroad with the card, know that the Journey Student Rewards from Capital One is a Visa — and Visa tends to be more widely accepted abroad than Discover. So, if you’re planning to travel, the Journey Student Rewards from Capital One might be a better choice.

The Journey Student Rewards from Capital One is a good credit card for students who want to build credit and take advantage of a simple cashback program that rewards responsible credit behavior. After demonstrating that you pay on time and don’t max your card out, you can request an upgrade to another Capital One offering better rewards — such as the Capital One Quicksilver Cash Rewards Credit Card, which earns 1.5% Cash Back on every purchase, every day; 5% Cash Back on hotels and rental cars booked through Capital One Travel (terms apply).

For Capital One products listed on this page, some of the above benefits are provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply