bank rates

Student Card Pays Up To 1.25% Cash Back

Capital One Joureny Student Rewards comes with a 19.8% APR.Capital One has two credit cards aimed at college students and young adults. The Capital One Journey Student Rewards credit card is easily the better of the two.

Although the card carries a high APR at 19.8%, that’s actually a lot lower than the interest rate on Capital One’s MTV Visa Card, which charges a sky-high 24.99%. Both are variable rates.

The rewards on the Journey card may be a little less generous than on the MTV card, but they’re a lot easier to understand and attain, and they’re still pretty good.

You get a full 1% back on all your spending. You also get a 0.25% bonus each month you pay your bill on time. That adds up to 1.25%, which is very competitive with most other cash-back cards, and a lot better than many other cards.

Redemptions start at $25, payable by check or a credit to your account. You can also redeem your rewards for gift cards starting at $20.

Your rewards never expire and there’s no limit on how many you can earn.

Instead of cash, the MTV card rewards you in points. You get five points for every dollar you spend on entertainment, two points per dollar at restaurants, and one point everywhere else. You also earn 25 bonus points in each billing period that you pay your bill on time.

Points can be redeemed for MTV merchandise, including tickets to MTV events and award shows, but you’ll need a lot of points to get those. You can also redeem your points for cash, gift cards at major retailers, and travel.

If you get either of these cards, make sure you always pay off the balance each month. Otherwise these rewards programs are useless.

Both cards carry no annual fee, and there are no balance transfer fees. But the APRs on both cards are way too high to consider transferring a balance.

Capital One says both cards are designed for students with limited or average credit.

Of the two, I recommend the Journey Card. While it may be trendier to carry the MTV card, the rewards on Journey are more realistic and the APR is a lot lower. You’ll save — and make — more money in the long run.

If you’re looking for something with a lower APR, our favorites include:

  • The Citi Forward Card for College Students, which includes a 0% introductory APR for seven months. After that, your rate will be between 13.99% and 21.99% variable.
  • The Discover Student Card, which includes a 9% intro APR for nine months. After that, your rate will be between 13.99% and 21.99% APR.

You’ll find both of these cards in our database of student credit card offers.

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