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College Students and Recent Grads, Reviews

Review: Journey Student Rewards from Capital One

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

If you are a college student looking to build credit, the Journey® Student Rewards from Capital One® could be a good option. Most important, there is a $0 annual fee and Capital One is willing to accept people with Average/Fair/Limited (or no) credit history. Although your credit limit will start out very low, Capital One promises a review of the limit after a short five short months — and good behavior can be rewarded with a higher credit limit. Cash back rewards are a nice added bonus, making this a good first credit card choice. Just make sure you don’t borrow with this card — at 26.96% (Variable) APR, the interest rate is high. The Journey® Student Rewards from Capital One® is featured as one of our recommendations for best student credit cards of July 2019.

Journey® Student Rewards from Capital One®

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Journey® Student Rewards from Capital One®

Annual fee
$0
Rewards Rate
1% Cash Back on all purchases; 0.25% Cash Back bonus on the cash back you earn each month you pay on time
Regular Purchase APR
26.96% (Variable)
Credit required
bad-credit
Average/Fair/Limited

How the Card Works

Capital One is one of the largest credit card issuers in the country. With Journey® Student Rewards from Capital One® it has created a credit card specifically designed for students looking to build their credit score and have access to the convenience of paying by credit card.

Capital One created the concept of “low and grow.” That means you will receive a very low credit limit at first (that could be as low as $500). If you demonstrate good behavior, your credit limit will grow over time. Capital One promises a review after just five months. If you make your first five monthly payments on time, you will be rewarded with a higher credit limit quickly.

The card also comes with a decent cash back rewards proposition. You will earn 1% Cash Back on all purchases; 0.25% Cash Back bonus on the cash back you earn each month you pay on time. That means responsible cardholders will earn 1.25% cash back. In general, MagnifyMoney does not get excited about rewards for student cards. Because the limit is so small, the amount of cash back that you can earn will be limited. However, 1.25% cash back on all purchases is a nice added bonus for students.

There are a few extra perks with this card. There is no foreign transaction fee, which is great for any student looking to study abroad or backpack across Europe. You will also be able to see your CreditWise® credit score for free. CreditWise offers free access to your TransUnion VantageScore 3.0 credit score. Almost every credit card issuer now offers access to a free credit score (making the benefit less exciting). However, because the goal of a student card is to build your credit score, being able to watch it improve in real time is a nice benefit. We also like that, with CreditWise, you have access to interactive tools that let you see how your behavior will impact your score over time.

Just remember: your goal with a student card is to have an excellent score (above 700) when you graduate from college. To do that, you should focus on three steps. First, use your card every month. Second, try to keep your statement balance below 10%-20% of your credit limit. That means if you have a $500 credit limit, don’t spend more than $50-$100 a month on the card. That keeps your utilization low. Third, pay your statement balance in full and on time every month. By doing this, you avoid paying any interest. With this card — you also get the full 1.25% cash back. And, most important, you build a strong credit history.

How to Qualify for the Card

Although this card targets students, you do not actually need to be a student in order to get the card. Capital One makes it clear that this card is for people with “Average/Fair/Limited” credit. In particular, people with average credit have limited credit history. If you have had a credit card for less than three years, you would be considered “average.” If you have no credit or are new to the country, you would also be considered average by Capital One.

In order to be approved, you will need to have income. Because students are being targeted with this card, the income requirements will be much lower than for a normal card. However, if you don’t have a way of repaying your card, you will not be able to get one. And a parental allowance is not considered income.

Just remember: Because Capital One will accept people with limited or no credit history, the credit limit will be low and the interest rate will be high.

What We Like About the Card

We believe this card could be a great choice for a college student looking to build credit. Here is what we like most.

$0 annual fee.

As a college student, every penny counts. And no college student should have to pay a fee to build their credit score. Fortunately, there are a number of credit card companies willing to offer student credit cards with no annual fee, and Journey® Student Rewards from Capital One® is one of them.

No foreign transaction fees.

Although the primary reason you get a student card is to build your score, having a card can be particularly helpful — especially if you are studying or traveling abroad. Foreign transaction fees of 3% or more can end up costing a lot of money. Fortunately, Capital One does not charge foreign transaction fees, and you can use your card overseas without worrying about annoying fees.

Rewards good behavior.

With your first credit card, it is important to start building responsible money habits. This card rewards good behavior. If you make your payments on time, you get a 25% boost in the cash back that you earn. And if you consistently make your payments on time, your credit limit will be increased (which can help you with your credit score, when used responsibly).

And yes, you get rewards.

When selecting a credit card, paying no annual fee is the most important feature. Although we wouldn’t recommend selecting a student credit card based upon cash back or miles, it is a nice added perk for the Capital One card. If you have a $500 limit and do not spend more than $100 a month on the card, you will only earn $15 of cash back per year (at the 1.25% rate). And we do not recommend spending more money to get more cash back — that is a bad strategy.

What We Don’t Like About the Card

Very high interest rate.

The credit card charges an APR of 26.96% (Variable) to everyone who is accepted. College students have enough to worry about with student loans — they shouldn’t be taking on additional debt as very high, double-digit rates of interest. If you max out a $500 limit and pay only the minimum due, you would end up spending $84 of interest during the first year alone, and would still have a $284 balance remaining. In other words, most of your money would go toward the interest. Just beware: a student credit card is a very expensive way to borrow.

Expensive late fees.

If you miss a payment, you will be hit with a late fee of up to $35. That is a steep price to pay for anyone, let alone a college student. To avoid late fees, make sure you set up automatic monthly payments.

Alternatives to the Card

There are a number of other options out there. We think you should avoid any student card that charges an annual fee. But here are two good options that don’t charge a fee.

If You Want to Earn More Rewards

If you want to earn more cash back, Discover is our favorite option. Discover it® Student Cash Back has a $0 annual fee and provides free access to your FICO® score. And it does something we really like: it offers a “Good Grades Reward.” You will get $20 statement credit each school year your GPA is 3.0 or higher for up to the next 5 years. That is on top of a cash back rewards program that earns 5% cash back at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com, or wholesale clubs up to the quarterly maximum each time you activate. Plus, unlimited 1% cash back on all other purchases. And you can get a dollar-for-dollar match of all the cash back you’ve earned at the end of your first year, automatically.

Who Benefits Most from the Card

If you are a college student looking to build your credit history, this is a great card. You do not have to pay an annual fee, and your credit limit will increase after just five months of on-time payments. The card also has a decent reward structure and no foreign transaction fee, making this a solid choice. You could probably earn more rewards at Discover (with its good grade bonus) or at Citi (at least in the first year with its sign-on bonus), but any of these would be solid options so long as you keep your balance low and pay it in full and on time every month.

Student Credit Card FAQs

Yes, you will need to demonstrate that you have income in order to qualify for the credit card. The credit card company needs to know that you will be able to make the monthly payment.

No — there is not a limitation based upon which school you attend.

Yes — it is never a good idea to max out your credit card, even if the credit limit is very low. As a general rule, never use more than 10%-20% of the credit limit. You can make payments before the statement date to help keep your statement balance low.

You should work hard to make sure you make payments on time every month. A missed payment will lead to a late fee. It could also lead to interest accruing on the balance and ultimately a negative mark on your credit report.

When you graduate from college and get a job, you should (if you used your card wisely) have a good credit score. At that time, you will have plenty of options available to you.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Brynne Conroy
Brynne Conroy |

Brynne Conroy is a writer at MagnifyMoney. You can email Brynne here

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How to Request a Credit Limit Increase With Chase

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

If you’re interested in requesting a credit limit increase with Chase, the good news is that it’s fairly simple to do. Before you pick up the phone, however, be sure you’re requesting a credit limit increase for the right reasons. Are you looking to get a higher limit so you can make a large purchase and pay it off over time? Are you constantly finding yourself maxing out your cards? A higher limit might help you in the short-term by giving you more breathing room, but it won’t solve the larger issue that is driving you to charge purchases you can’t afford to pay off each month.

But a credit limit increase can also be a strategic move to decrease your credit utilization rate and, as a result, possibly boost your credit score.

In this post, we’ll provide instructions for requesting a credit limit increase with Chase.

Option 1: Over the phone

The only way to request a credit limit increase is to speak with a representative over the phone. Simply call the number on the back of your card and someone can assist you in requesting a higher credit limit. Have your account and financial information ready.

A Chase representative tells MagnifyMoney there is no limit to how many times you can request a credit limit increase. However, be aware that a request will result in a hard pull on your credit report, which can ding your credit score.

Option 2: Automatic credit limit increases

On occasion, you may receive a notice from Chase in the mail saying your credit limit has been increased automatically. If you receive an increased credit limit, there is no action required on your part and your new credit limit is available for use. Your odds of receiving an automatic credit limit increase may be amplified if you follow some of the tips below.

  • Pay on time and more than the minimum. Having good payment history shows issuers you’re responsible with your credit card and may lead to an increase in your credit limit. That means don’t be late on payments and avoid carrying a balance whenever possible.
  • Keep your income up to date. For example, if you get a raise, record your new salary on your account profile so your financial information will be current. If issuers see you’re making more money, they may raise your credit limit.

Currently, you can’t request a credit limit increase with Chase online.

Understanding credit limit increases

Hard or soft pull on your credit? If you receive an automatic credit limit increase, there will be no harm to your credit score since you didn’t initiate anything. However, if you request an increase by phone, Chase will request a credit bureau report, resulting in a hard pull.

A higher credit limit has the potential to improve your credit score. Increasing your credit limit has the potential to boost your credit score by allowing you to maintain a low utilization rate more easily. Your utilization rate is the amount of credit you’re using divided by the total credit you have. An increase in the limit while maintaining the same spending will lower your utilization rate, and may raise your credit score.

For example, if you spend $1,000 a month on a card with a $4,000 credit limit, your utilization rate is 25%. But, if you request a credit limit increase and receive a new line of credit at $5,000, your utilization rate will drop to 20% as long as you still spend $1,000 a month.

Increased buying power. Your current credit limit may not be enough to cover the cost of large purchases, and that’s where a credit limit increase can come in handy. An increase in your credit limit can provide you with the buying power necessary for large purchases. However, take your increased credit limit with a grain of salt. While it can be tempting to spend more, keep new purchases to a minimum and pay them off as soon as possible so you avoid interest charges.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Alexandria White
Alexandria White |

Alexandria White is a writer at MagnifyMoney. You can email Alexandria at [email protected]

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Review of Edward Jones CD Rates

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

What are brokered CDs?

Edward Jones offers brokered CDs, which are a bit different from the standard bank-issued CDs that most investors are familiar with. Bank-issued CDs, as the name implies, are issued by individual banks for their customers. Since Edward Jones is a broker and not a bank, it cannot issue its own CDs. Instead, the firm offers a range of CDs issued by other banks and thrifts but sold via Edward Jones.

For the casual investor, it can be hard at first glance to tell the difference between bank-issued and brokered CDs. However, there are some important distinctions:

  • No early withdrawal penalties: Brokered CDs don’t have early withdrawal penalties. If you need to get out of your CD, you can usually sell it back to another investor through a brokerage firm. This means that brokered CDs carry some additional risk, as the price of these CDs may fluctuate on the open market.
  • Higher APYs: You can often get higher yields on a brokered CD than with a bank-issued CD. Brokers are able to negotiate higher CD rates since they can guarantee a large pool of buyers to CD issuers. In the era of online banking, however, even brokered CDs do not always garner the absolute highest rates.
  • Longer-term options: Brokered CDs often have longer-term options than are available with traditional bank-issued CDs, which are generally short-term investments only.

CD rates from Edward Jones

Edward Jones offers a fairly comprehensive range of CD maturities, ranging from three months to 10 years, although the firm doesn’t offer 6-year CDs, 8-year CDs or 9-year CDs. Rates and availability change frequently, oftentimes daily. The longer-duration CDs offered by the firm aren’t traditionally available at banks.
Edward Jones CD Rates
TermMinimum deposit to earn APYAPY
3 months$1,0001.95%
6 months$1,0002.00%
9 months$1,0002.00%
1 year$1,0001.95%
18 months$1,0001.90%
2 years$1,0002.05%
3 years$1,0002.15%
5 years$1,0002.20%
7 years$1,0002.45%
10 years$1,0002.60%

For all maturities, Edward Jones requires a $1,000 opening deposit, which is the same minimum required to earn the stated APY. As these are brokered CDs, there is no early withdrawal penalty. However, investors are subject to current market prices if they need to get out of a CD prematurely. If interest rates have risen since the date of purchase, you’re likely to get less money back than you originally invested in the CD.

One important difference between Edward Jones CDs and standard bank-issued CDs is that interest does not compound with Edward Jones CDs. All interest is paid directly into a money market or insured bank deposit at Edward Jones, unless you request it to be distributed. Either way, you can’t reinvest your distributions into your existing CD.

Unlike some banks, Edward Jones doesn’t offer any type of hybrid or alternative CD, such as a step-up CD or an adjustable-rate CD. There are also no bonus APR CDs available at the current time, just standard rates. Edward Jones also does not offer special rates for jumbo CDs, which traditionally require a $100,000 deposit. However, you can use the firm’s wide range of CD maturities for certain CD strategies, such as building a CD ladder. You can also buy their brokered CDs in an IRA.

Unlike bank-issued CDs, the brokered CDs offered by Edwards Jones do not automatically roll over into new CDs. At maturity, the banks that issued the CDs pay the proceeds to Edward Jones, which then forwards the money to your account. At that point, you can either select a new brokered CD to purchase, or keep the funds in your Edward Jones money market or insured bank deposit account.

How to get CDs from Edward Jones

You’ll need to open a brokerage account at Edward Jones to buy any CDs. The account minimum to open is $0, but as Edward Jones is a full-service brokerage, you’ll need to go into a branch and visit a financial advisor to open an account. There is no facility to open an account online.

You can open your Edward Jones account as rapidly as you can fill out the paperwork and fund the account. As soon as your deposit clears, you are free to buy a CD through your Edward Jones broker. If you change your mind, you can generally withdraw your funds within 4-6 business days after deposit, although this hold period may extend to 11 business days for new clients. Once you buy a CD, you can sell it at any time on the open market. As noted above, the amount you receive may be less than the amount you originally paid.

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How do CD rates from Edward Jones compare?

Edward Jones CD rates are well above the national average, but they still fall considerably short when compared with the best available rates nationwide.

Unlike with many firms, Edward Jones doesn’t currently have any special-rate CDs, where certain maturities pay dramatically higher rates. Instead, rates at Edward Jones land along a traditional curve, gradually increasing in yield as maturities lengthen.

For example, as of July 3, 2019, the Edward Jones 2-year CD rate of 2.05% is far below the best available 2-year CD rates. Three-year CD rates top out nationally at 3.00%, but Edward Jones pays 2.15%. The pattern continues throughout the maturity curve, with the top 5-year CD rates nationally hitting 3.00% or more, while the 5-year at Edward Jones pays 2.20%.

As such, all rates at Edward Jones fall in the general area of being well-above national averages but still notably short of the best available rates.

Overall review of CDs from Edward Jones

You won’t be wasting your time investing in CDs from Edward Jones, as you’ll be earning rates far above the national averages. You’ll also benefit from the ability to construct a CD or overall investment strategy with the assistance of a full-service advisor. However, if you’re looking for the absolute best CD rates for your money, there are plenty of online banks that can pay you a higher rate.

CD investors who like a wide range of products may be disappointed at Edward Jones, as popular options such as step-up or no-penalty CDs are not currently available. However, Edward Jones CDs do benefit from offering brokered CDs. This provides a range of flexibility that standard bank-issued CDs cannot offer, as you can liquidate your CD position at any time without paying an early withdrawal penalty.

The bottom line is that yield-hungry investors that enjoy managing their own portfolios may be better suited at any number of online competitors. Those looking to incorporate decent-yielding CDs into their overall investment portfolio with the help of a full-service broker might prefer working with Edward Jones.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

John Csiszar
John Csiszar |

John Csiszar is a writer at MagnifyMoney. You can email John here