Is Capital One or Discover Better for Students?

Students often seek financial services to manage money, build credit, and access convenient banking. Capital One and Discover are prominent choices in the United States, offering various financial products tailored for this demographic. Understanding the distinctions between their offerings is helpful for students weighing their options. This article compares Capital One and Discover, examining their student credit cards, banking services, customer support, digital tools, and application processes.

Comparing Student Credit Card Options

Capital One and Discover both offer student credit cards designed to help establish credit history while providing rewards. Capital One offers the Quicksilver Student Cash Rewards Credit Card, which provides 1.5% cash back on all purchases. The Savor Student Cash Rewards Credit Card offers 3% cash back on dining, entertainment, popular streaming services, and grocery stores (excluding superstores), plus 1% on other purchases. Both Capital One student cards have no annual fees or foreign transaction fees. Capital One also provides a one-time $100 cash bonus after spending $300 within the first three months for both student cards.

Discover’s student credit card options include the Discover it Student Cash Back and the Discover it Student Chrome. The Discover it Student Cash Back card offers 5% cash back in rotating bonus categories each quarter (on up to $1,500 in spending when activated) and 1% on other purchases. The Discover it Student Chrome card provides 2% cash back at gas stations and restaurants (on up to $1,000 in combined purchases each quarter) and 1% on other purchases. Both Discover student cards have no annual fee or foreign transaction fees. Discover also offers “Cashback Match,” automatically matching all cash back earned at the end of the first year for new cardmembers.

Both Capital One and Discover student cards are designed for individuals with limited or no credit history, facilitating credit building through responsible use. They report payment activity to major credit bureaus, essential for establishing a credit profile. While credit limits vary, these cards offer initial limits appropriate for students, with opportunities for increases over time. Discover also offers an introductory 0% APR on purchases for six months for its student cards, which can be beneficial for managing initial expenses.

Comparing Student Banking Options

Capital One and Discover offer banking services, including checking and savings accounts for students. Capital One’s 360 Checking account has no monthly maintenance fees or minimum balance requirements. It also has no overdraft fees, offering options to decline payments or link a savings account for coverage. Capital One provides access to over 70,000 fee-free ATMs, including Capital One, MoneyPass, and Allpoint ATMs. Capital One also offers the 360 Performance Savings account, which provides a competitive annual percentage yield (APY) without monthly fees or balance minimums.

Discover offers the Cashback Debit account, a checking account providing 1% cash back on up to $3,000 in monthly debit card purchases. This account has no monthly fees, overdraft fees, or insufficient funds fees. Discover’s ATM network includes over 60,000 fee-free ATMs through the Allpoint and MoneyPass networks. For cash deposits, Discover allows customers to deposit cash at Walmart stores, which can be convenient for students without access to physical bank branches. Discover also provides an online savings account with competitive interest rates and no monthly fees.

Both institutions support mobile check deposit and offer early access to direct deposits, potentially making funds available up to two days sooner. These features help students manage part-time job earnings or financial aid disbursements. Neither institution charges foreign transaction fees on their debit cards, which is advantageous for students who travel internationally.

Customer Support and Digital Tools

Capital One and Discover prioritize accessible customer support and robust digital tools for their student customers. Capital One’s mobile app allows users to manage credit card and banking accounts, view transactions, pay bills, and monitor credit with CreditWise. The app supports secure login methods like fingerprint and facial recognition, and enables users to lock or unlock cards instantly if lost or stolen. Capital One also provides an automated assistant, Eno, within the app for quick queries. Phone support is available for human interaction.

Discover’s mobile app offers comprehensive account management features, including viewing balances, making payments, and tracking rewards. A distinct feature is its in-app messaging system, allowing users to communicate with customer service via text-like messages without needing a live session, offering flexibility for busy students. Discover also offers a “Freeze it” switch within the app to instantly prevent new purchases and cash advances if a card is misplaced. Discover provides free access to FICO credit scores directly within their app, which aids students building credit. Both institutions offer notifications and alerts for account activity, helping students stay informed about their finances.

Application Requirements and Process

Applying for student financial products with Capital One or Discover involves meeting specific age and enrollment criteria. Applicants for student credit cards and banking accounts need to be at least 18 years old. For individuals under 21, issuers may require proof of income to demonstrate the ability to repay debts. This income can stem from various sources, including part-time employment, work-study programs, or an allowance from a family member.

Proof of enrollment or student status is a common requirement for student products. Capital One defines a student as someone admitted and enrolled (or planning to enroll within three months) at an accredited higher education institution. Discover similarly requires applicants to be a college or university student. Required documentation often includes a valid form of identification, such as a driver’s license or state ID, and a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) for international students.

The application process for both Capital One and Discover can be completed online, resulting in a quick decision. While a credit score is not explicitly required for student cards (designed for those with limited or no credit history), financial institutions still review an applicant’s financial profile. Capital One offers a pre-approval tool allowing prospective applicants to see which cards they qualify for without a hard inquiry. Discover also provides a pre-qualification form that uses a soft inquiry, which does not affect the credit score, to show potential offers.