Discover it Student Cash Back vs. Journey Student Credit Card from Capital One Credit Card
Decisions, decisions. You’re already swamped with many aspects of college life, and now you must choose a credit card that will be your trusted financial ally.
Undoubtedly, you want the best student credit card around. We narrowed it down to two student credit cards -- Discover it Student Cash Back vs. Journey Student Rewards from Capital One -- that are worthy of that title.
After my analysis of the two cards, from fees to card perks, I help you determine the better card for you:
Student Credit Cards: Capital One vs. Discover
|Card||Discover it Student Cash Back||Journey Student Rewards from Capital One|
|Rewards||5% cash back after you sign up in categories that change through the year, up to the quarterly maximum when you activate; 1% cash back on all other purchases||1% cash back plus an additional 0.25% cash back when you make payments on time|
|Special card benefits||No foreign transaction fee, no penalty APR and no first-time late payment fee||No balance transfer fee and free Credit Tracker tool|
You’re in college. You’re going to be spending a good amount of money on everything from living expenses to entertainment. Why not earn some rewards on that spending?
- Discover it Student Cash Back: 5% cash back after you sign up in categories that change through the year after you sign up, up to the quarterly maximum when you activate; 1% cash back on all other purchases
- Journey Student Rewards from Capital One: 1% cash back on all purchases; get an additional 0.25% cash back when you pay on time
The Discover student credit card has an interesting cash back program that allows you to earn 5% cash back on specific categories after you sign up, which change every quarter during the year.
In the past, these categories included gas, restaurants, online shopping, and movies -- all are popular spending categories for a typical college student.
Bonus cash back is capped per quarter, but I don’t think that many students will reach these limits. These categories vary, but it's usually around a $1,500 spending limit. Additionally, you’re getting at least 1% cash back on everything else.
Journey Student Rewards from Capital One goes with a very simple cash back program that also rewards good repayment behavior. If you make that on-time payment, you’re getting an effective 1.25% cash back on all purchases.
I give this criteria to the Discover it Student Cash Back card because you’ll most likely earn much more throughout the year by using the card on one (or several) of that 5 % cash back categories, as opposed to the 1.25% effective cash back that you’d receive from Journey Student Rewards from Capital One.
WINNER (Rewards): Discover it Student Cash Back
A Review of the Benefits
Even for you, a college student, credit cards can be more than just a way to make easy payments and earn rewards. They can have special features that would come in handy for you, whether it is saving money on fees or teaching you more about credit.
- Discover it Student Cash Back: No penalty APR, no first late-payment fee, no foreign transaction fees and free FICO Credit Score online and on monthly statements
- Journey Student Rewards from Capital One: No balance transfer fee and free Credit Tracker tool
Discover it Student Cash Back carries a rather lenient fee policy that forgives the student for a first late payment. Normally, that would result in a late-payment fee and a penalty interest rate.
While you should never make a late payment, it’s good to know that you get one freebie. The free monthly FICO credit score is especially useful to you because you get to watch your credit improve.
You’ll want to monitor this number because high credit scores help you qualify for loans and better interest rates when you begin to look into other types of loans (e.g., auto loan, mortgages, etc.).
The Journey Student Rewards from Capital One waives foreign transaction fees and balance transfer fees -- neither of which will be too beneficial to college students.
Capital One does offer a free Credit Tracker tool that lets you simulate various credit situations and it provides a free monthly TransUnion credit score. Use it to help you improve your credit.
While both cards offer a nice credit education tool, I think that the Discover it Student Cash Back card waives fees that are much more impactful for college students. So, it takes the cake for having better card benefits.
WINNER (Card benefits): Discover it Student Cash Back
Being a student certainly, does come with its privileges in the banking world. In the same way that you probably don’t have to pay monthly fees on your student checking account, you probably won’t have to pay an annual fee for a student credit card.
- Discover it Student Cash Back: $0 annual fee
- Journey Student Rewards from Capital One: $0 annual fee
You should never pay an annual fee for a student credit card. That's why these two cards are among my most-recommended student credit cards.
Since they're catering to students, neither card will charge an annual fee -- both cards have an edge over the other on this criteria. Instead, read on the compare the features of both cards to find out which one is the better choice.
WINNER (Annual fee): Tied
Verdict: Discover it Student Cash Back
On many fronts, the Journey Student Rewards from Capital One struggles to compete with the Discover it Student Cash Back card -- the overall better student credit card.
The Journey Student Rewards from Capital One is fine for its simple cash back program, but with Discover, you’re more likely to get pay fewer fees and have more opportunities for great rewards. There’s no wonder why it topped my list of best student credit cards.