What's Happening?
CNBC Select has conducted a comparison between the Discover it Student Cash Back card and the Capital One Savor Rewards for Students card, focusing on their rewards systems and benefits. The Discover card offers a unique welcome bonus by matching all cash back earned in the first year, while the Capital One card provides a straightforward $50 bonus after spending $100 within three months. Both cards offer cash back on various categories, with Discover providing 5% cash back on rotating categories and Capital One offering 3% cash back on fixed categories like groceries and dining. The comparison highlights the differences in rewards systems, redemption options, and additional benefits, such as foreign transaction fee waivers and extended warranties.
Why It's Important?
This comparison is significant for students seeking to maximize their credit card rewards and benefits. The choice between these cards can impact students' financial management, especially in terms of cash back earnings and budgeting. The Discover card may appeal to those who prefer rotating categories and higher potential rewards, while the Capital One card offers consistent rewards in fixed categories, which might be more suitable for students with predictable spending habits. Understanding these differences can help students make informed decisions that align with their financial goals and spending patterns.
What's Next?
Students interested in these credit cards should consider their spending habits and financial needs before applying. They can explore additional offers through CNBC's credit card marketplace or use tools like CardMatch to find personalized options. As students evaluate these cards, they should also consider factors like APR rates, fees, and additional benefits to ensure they choose the card that best supports their financial strategy.
Beyond the Headlines
The comparison also touches on broader financial literacy issues, encouraging students to understand credit card terms and manage their finances responsibly. By choosing the right card, students can build credit history and develop good financial habits, which are crucial for their future financial stability.
