Capital One SavorOne Student Cash Rewards Credit Card review: is this the right student card for you?

If Thanos gave Gomora a credit card to use in college, it would probably be the Capital One SavorOne Student Cash Rewards Credit Card. The card offers incredibly generous cash back rewards, but like her father, it also doesn’t forgive, charging potentially scary-high interest rates and no late payment forgiveness.

In that way, one might say it’s “perfectly balanced.” 

So what are the pros and cons of using the Capital One SavorOne Student Cash Rewards Credit Card? How much cash back can you earn on a student budget? Are the risks worth the rewards?

Let’s investigate.

Capital One SavorOne Student Cash Rewards Credit Card

Information about the Capital One SavorOne Student Cash Rewards Credit Card has been collected independently by Money Under 30. Please confirm terms on the card issuer's website. Offer details verified on Apr. 22, 2024.

Welcome Offer

Earn a one-time $50 cash bonus once you spend $100 on purchases within 3 months from account opening.

Rewards

Earn unlimited 3% cash back on dining, entertainment, streaming services and at grocery stores (excluding Walmart & Target); 10% cash back on Uber and Uber Eats (through November 14, 2024); 8% cash back on Capital One Entertainment purchases; 5% cash back on hotels and rental cards booked through Capital One Travel; and 1% cash back all other purchases.

Annual Fee

$0 annual fee.

Our Thoughts

College students who want to build their credit while earning rewards on popular everyday spending categories may find this to be a top option for a student credit card. Plus, you get to keep all the same rewards and benefits even after you graduate.

• Best for – Students with income.
• Intro offer/sign-up bonus – $50 bonus when you spend $100 on purchases within 3 months from account opening.
• Cash back – 8% cash back on entertainment purchases when booked through the Capital One Entertainment Portal; 3% cash back on dining, at grocery stores (excluding superstores like Walmart® and Target®), popular streaming services, and entertainment; 1% cash back on all other purchases.
• Intro APR – N/A.
• Regular APR – 19.99% - 29.99% (Variable).
• Perks and unique features – Extended Warranty, Travel Accident Insurance, 24/7 concierge, and more.
• See Rates & Fees.

Let’s take a deep dive into the Capital One SavorOne Student Cash Rewards Credit Card. What are the card’s best selling points, and conversely, its most glaring drawbacks?

Rewards

In terms of rewards, the Capital One SavorOne Student Cash Rewards Credit Card gives us a lot to talk about. Before going further, let’s recap what you get:

• 8% cash back on entertainment purchases when booked through the Capital One Entertainment Portal.
  
• 3% cash back on dining, entertainment, and at grocery stores (excluding superstores like Walmart® and Target®).
• 3% cash back on popular music and video streaming services.
• 1% cash back on all other purchases.

OK, lots to unpack here.

First, let’s talk about that 8% cash back category on Capital One Entertainment purchases. Getting 8% cash back on entertainment events is undeniably a good deal. Available experiences include sporting events and VIP packages,  and exclusive access on music and dining experiences. 

The 3% cash back on dining, entertainment, and at grocery stores is much more straightforward (and valuable). If you’re a student, these are probably categories you’re already spending heavily in, so those cash back rewards can add up quickly.

Qualified “entertainment” purchases include movie tickets, amusement parks, zoos, aquariums, bowling, and more. Dining includes qualified purchases at restaurants, fast food joints, and more, so presumably takeout is included. Finally, popular streaming services are included, but exclude Kindle Unlimited and Prime Video.

Finally, the 1% cash back on all other purchases may seem like a footnote, but it’s actually a highlight. As we’ll see below in the “How Much Can You Earn?” section, that 1% will net you ~$50 on a $750 monthly budget.

All in all, the Capital One SavorOne Student Cash Rewards Credit Card is surprisingly rewarding for a student card — but as we’ll see below, the rewards don’t come without some risks.

Bonuses

The Capital One SavorOne Student Cash Rewards Credit Card is currently offering a limited-time signup bonus: earn a $50 bonus when you spend $100 on purchases within 3 months from account opening. (No word yet on how long this “limited time” offer will last.)

APR

There’s no way around it, so I’ll just say it: the Capital One SavorOne Student Cash Rewards Credit Card’s APR is a red flag. If you come in at the high end of its 19.99% - 29.99% (Variable) APR (as determined by your creditworthiness), that’s nearly double the national average of around 16% — and that’s deeply problematic for a student-centric credit card for a few reasons (See Rates & Fees.).

First, a little recap of how APR works. 

Let’s say you place $1,000 worth of charges on your Capital One SavorOne Student Cash Rewards Credit Card and are unable to pay it back at the end of the month. Here’s how how much interest you may owe, using a hypothetical example:

1. Divide your APR by 365, so 0.2799 / 365 = 0.0767.
2. Multiply 0.000767 by your balance, so 0.000767 x $1,000 = $0.77.
3. Multiply by days in your billing cycle, so $0.77 x 30 = $23.10.

$23.10 interest owed on a $1,000 balance doesn’t sound so bad, but high-interest debt quickly snowballs out of control — just ask a percentage of Americans who are unable to pay off their card, in part due to piling interest (CNBC).

The Capital One SavorOne Student Cash Rewards Credit Card also doesn’t include any sort of debt protection. Other student credit cards have late payment forgiveness or lower interest rates, but the Capital One SavorOne Student Cash Rewards Credit Card already starts higher than that at its low end, right out of the gate.

Annual fee

In lighter news, the Capital One SavorOne Student Cash Rewards Credit Card doesn’t charge an annual fee. That’s pretty standard among credit cards for students, but worth pointing out nonetheless.

Other fees

Aside from the APR, here are some of the other fees associated with the Capital One SavorOne Student Cash Rewards Credit Card (See Rates & Fees.):

• Balance transfer fee – Balance Transfer Fee applies to balances transferred at a promotional rate.
• Cash advance fee – 5% of the amount of the cash advance, but not less than $5.
• Late payment fee – up to $40.

If you’re unfamiliar with balance transfers, it’s when you move your balance from your old card onto a new card to take advantage of a lower interest rate. Balance transfers can save you hundreds, even thousands on interest, but not with the Capital One SavorOne Student Cash Rewards Credit Card.

Unique perks and benefits

The Capital One SavorOne Student Cash Rewards Credit Card includes some pretty sweet benefits typically reserved for non-student rewards cards. Here are some of the highlights:

• No foreign transaction fees – The Capital One SavorOne Student Cash Rewards Credit Card may not have travel rewards — but no foreign transaction fees is arguably even better, since you’ll save ~3% per transaction.
• Extended warranty – This benefit is extended if you buy something with your Capital One SavorOne Student Cash Rewards Credit Card that includes a store or manufacturer warranty. Nice.
• $0 fraud liability – Get a mystery charge at a gas station three states away? Not to fear — your Capital One SavorOne Student Cash Rewards Credit Card comes with $0 fraud liability. Just be sure to report it, ASAP.
• Autopay – You can set up autopay from your Capital One dashboard so you never miss a minimum payment on your Capital One SavorOne Student Cash Rewards Credit Card. Consider this step a must!
• Complimentary concierge service – Your Capital One SavorOne Student Cash Rewards Credit Card grants you access to Capital One’s 24/7 concierge, which you can ring up for tips on dining, travel, and entertainment. You’ll probably never use it, but it feels cool to have.
• 24-hour travel assistance services – Finally, if your Capital One SavorOne Student Cash Rewards Credit Card is ever lost or stolen, you’ll get another card expedited to you at no charge (and you’ll be protected from fraudulent purchases while it’s on the way).
  • Note information on perks and unique features was independently gathered and reviewed by MU30’s editorial team.

The most valuable perk/benefit of the Capital One SavorOne Student Cash Rewards Credit Card is definitely the Extended Warranty protection. If your new $1,200 tech comes with a 12-month warranty, but starts acting up after 14 months, not to worry — you’re protected. The extended warranty automatically doubles the manufacturers warranty on all eligible purchases for your pricey toys (as long as you put them on your Capital One SavorOne Student Cash Rewards Credit Card!).

Now that we’ve covered the key details of the Capital One SavorOne Student Cash Rewards Credit Card, let’s talk earnings potential. If you spend like a student, how much cash back can you earn with this card?

Even as a student on a budget, you can earn some pretty decent beer money by using the Capital One SavorOne Student Cash Rewards Credit Card. Here’s a breakdown based on a budget of $750 per month.

Anything over $200 back per year is impressive for a rewards card, and especially a student-centric one. And remember — this is on a pretty strict $750 monthly budget. If you go to school in an expensive city where drinks and groceries cost more and spend around $1,000 per month, you’ll earn over $270 per year.