Capital One Journey Review

capitalone_journeyThe Capital One Journey is a rewards credit card which is marketed to students who want to earn cash back on purchases while building credit with responsible use.  There is no signup bonus available with this card nor is there an introductory APR offer.  The Capital One Journey is part of the Visa network and comes with additional Visa Platinum benefits.  This card only requires average credit and has no annual fee.

Members earn unlimited cash back rewards of 1% on every net purchase, all the time.  Net purchases are considered the total amount of transactions minus any credits, returns, or other adjustments.  If your account is not past due on the last day of each billing cycle, you will be awarded an extra 0.25% cash back bringing your total reward rate to 1.25%.  This option is available as long as you pay your bills on time each month.

Account holders can redeem cash back rewards in the form of a statement credit or check.  You can also set up an automatic redemption preference which includes:

  • Redeeming rewards at a set time each calendar year
  • Redeeming rewards when a specific dollar threshold is met (such as $25, $50, $100 or $200)

Cash back rewards may also be redeemed for gift cards and other items.  It’s important to note that these redemption options may vary (and may give you a lower rate of return).

There is no cap on the amount of rewards you can earn.  Plus, rewards never expire as long as your account remains open, active and in good standing.

The variable APR for purchases and balance transfers is 20.24%.  One nice perk of The Capital One Journey card is there is no balance transfer fee if you choose to transfer an existing credit balance to this card.  Most other credit cards typically charge 3%-4% of the transfer amount.

The minimum credit limit given with the Capital One Journey card is $300.  However, members can get access to a higher credit line after making your first five monthly payments on time.

Other features of the card are:

  • Free, unlimited access to your credit score and other financial tools through Credit Tracker
  • No foreign transaction fees
  • Account alerts (emails or text) to help you stay on top of your account
  • Access to the Financial Education site which provides tips and tools to help you understand your finances and manage your credit
  • $0 Fraud Liability if your card is ever lost or stolen

Members receive additional Visa Platinum benefits including:

  • Travel Assistance – 24/7 assistance services such as emergency card replacement and cash advances
  • Extended Warranty – Receive up to one additional year of free warranty on eligible items that are purchased with your card
  • Auto Rental Insurance – Pay for your auto rental contract with your card and get collision and/or theft coverage at no additional cost

Note:  Certain restrictions and exclusions may apply to all benefits.

The Capital One Journey has no annual fee.

The Facts

Below we have broken down the specific details of the Capital One Journey to help you determine if it’s the right card for you.

The Good:

Simple rewards program:

Members earn 1% cash back on every purchase, all the time.  There are no rotating categories to remember or sign up for.  For example, if you have $400 in eligible net purchases in a billing cycle you will earn $4 in cash back rewards.

25% cash back bonus:

If your account is not past due on the last day of each billing cycle, you will be awarded an extra 0.25% cash back bringing your total reward rate to 1.25%.  This option is available as long as you pay your bills on time each month.  Any bonus cash back will appear on your statement approximately two months after the on-time payment is made.

Easy to redeem rewards:

Account holders can redeem cash back rewards in the form of a statement credit or check.  You can also set up an automatic redemption preference which includes redeeming rewards at a set time each calendar year or redeeming rewards when a specific dollar threshold is met ($25, $50, $100 or $200).

Cash back rewards may also be redeemed for gift cards and other items but be aware that these redemption options may vary (and may give you a lower rate of return).

No cap on rewards:

There is no limit to the amount of cash back rewards you can earn.  Rewards do not expire as long as your account remains open and in good standing.  However, if your account is closed for any reason, you immediately lose any accumulated rewards.

Access to higher credit limit:

The credit limit you receive upon approval is based on your creditworthiness at that time.  However, the minimum credit limit given with the Capital One Journey card is $300.  A great feature of the card is that you can get access to a higher credit line after making your first five monthly payments on time.

Average credit ok:

Unlike with many rewards credit cards, applicants who have average credit can be approved for the Capital One Journey card.  (Please note that approval is not guaranteed.)

Capital One features: 

  • Free, unlimited access to your credit score and other financial tools through Credit Tracker
  • No foreign transaction fees
  • Account alerts (emails or text) to help you stay on top of your account
  • Access to the Financial Education site which provides tips and tools to help you understand your finances and manage your credit
  • $0 Fraud Liability if your card is ever lost or stolen

Additional Visa Platinum benefits:

  • Travel Assistance
  • Extended Warranty
  • Auto Rental Insurance

No annual fee:

Members are not charged an annual fee for use of the card.

The Bad:

No introductory APR:

There is no introductory APR available for either purchases or balance transfers.  While there is no balance transfer fee charged with this card, the standard variable APR of 20.24% does not make it a good choice for a balance transfer.

The Ugly:

Weak rewards rate:

1% cash back is fairly weak among rewards credit cards.  The 25% reward bonus which is available as long as you make on-time payments does push the rate to 1.25% which is a bit more palatable.

The Capital One Journey card is a decent rewards credit card that is a good choice for students who want to build a credit history while they are still in school.  Cash back is earned on all types of spending (no rotating or bonus categories) plus there is no cap on the amount of rewards you can earn.  The variable APR of 20.24% is somewhat steep but on the positive side, people with average credit can be approved for the card.