A new starter credit card for college students uses the offer of bonus cash rewards to encourage on-time payments. Officials from Capital One unveiled their new Journey℠ Student Rewards from Capital One®, detailing the card's unique mission in a statement to reporters.
Like other student credit cards, the Journey Student Rewards from Capital One offers relatively low credit limits and a relatively high variable APR compared to most cards. The distinguishing features of the Journey Student Rewards from Capital One, according to Capital One, are designed to help young borrowers build credit with responsible use as they build the kind of credit histories that would qualify them for higher credit limits and lower interest rates.
Capital One spokesperson Mike Wassmer told reporters that the card also includes "appropriate guardrails" to prevent misuse. Cardholders will receive text message and e-mail alerts when minimum payments are due and when accounts get too close to their credit limits. Although cardholders qualify for 1 percent cash back on all purchases, diligent cardholders can get a 25 percent bonus on the cash back earned during each month they make their payment on time.