For students ready to get into credit card rewards, the new Capital One cards can be a fantastic introduction.
Summer of 2021 has been full of exciting credit card announcements. Now Capital One is joining the news cycle with the launch of two new student credit cards based on its existing popular cash back products.The two new cards, Capital One Quicksilver Student Cash Rewards Credit Card and Capital One SavorOne Student Cash Rewards Credit Card, launched on Aug. 17, 2021. Both charge no annual fees and offer an excellent opportunity for students to earn rewards while their credit is growing.
What the new Capital One student cards offer
These student credit cards from Capital One are raising the bar for the entire student credit card market, offering outstanding rewards rates matching those on non-student rewards cards.
First up is the Capital One Quicksilver Student, a student version of the Capital One Quicksilver Cash Rewards Credit Card.
Quicksilver is known as a decent starter card with flat-rate cash back, as well as a simple cash-back product that earns rewards on everyday spending, thanks to its 1.5% earning rate on all purchases.
The student version of the Quicksilver offers the same simple rewards structure, as well as no annual fees or foreign transaction fees. Cardholders can earn unlimited cash back which doesn’t expire for the life of the account. All of this makes the Quicksilver Student a perfect first credit card.
Second new card from Capital One is one of the most exciting student card products available on the market. Like the non-student Capital One SavorOne Cash Rewards Credit Card, the SavorOne for students earns unlimited 3% cash back on dining, entertainment, eligible streaming services and at grocery stores (excluding superstores like Walmart and Target) and 1% cash back on everything else.
There are also no annual or foreign transaction fees to worry about.
Previously, Capital One has offered only one student credit card. The Journey Student Rewards from Capital One is still available for applications and earns 1% back on all purchases (boosted to 1.25% back if you pay on time).
Additionally, new cardholders can get up to $60 in streaming service subscription credits paid out in monthly $5 increments for the first 12 months.
Should you apply for a new Capital One student card?
If you’re currently enrolled in college and ready to start earning credit card rewards, the two new offers from Capital One are quite appealing.
High-rate rewards credit cards are rare in this category. Until now, student credit cards from Discover have offered the most earning potential, especially the Discover it® Student Cash Back with its 5% back on purchases in quarterly bonus categories (up to $1,500 in purchases per quarter, 1% back thereafter – enrollment required).
Now, Discover has a tough competitor – and that’s great news for students.
SavorOne for students is an outstanding offer. We estimate early rewards value on this card to be around $305 for someone who spends $15,900 annually. This is excellent earning potential for a student credit card.
Quicksilver Student might not offer as much value, but it’s still a decent offer. It could work for two types of cardholders: those who seek a simple, no-frill rewards structure and those looking for a card to complete their card strategy with more than 1% back on all purchases.
Speaking of the strategy, students now have an opportunity to create quite an attractive card combo. A trio consisting of the two new Capital One cards and the Discover it Cash Back for Students could yield hundreds of dollars in annual cash back if the cardholder is responsible about their credit card usage.
Considering none of these cards charge annual fees, this is also a low-maintenance combo perfect for students confident in their card management skills. It provides an opportunity for students to practice juggling multiple cards without worrying about their costs before they can jump into expensive premium credit cards.
The new Capital One suite of student cards is truly exciting and can earn cardholders plenty of cash back. For those new to credit cards, however, it’s essential to be mindful about card usage – rewards credit cards can offer only so much if you carry a balance or makes credit card mistakes like missing a payment.