Millennials have a very different spending habit. They like to go out and eat with friends, travel regularly, online shop, and prefer to spend money on experiences rather than physical objects. That being sad, it makes sense for millennials to carry credit cards that will suit their lifestyle.
For a more comprehensive list, see our best credit card bonuses here.
we have rounded up eight rewards cards below that will match up with well with millennials that have certain spending habits.
Why Millennials Should Use Credit Cards
The most common reason why millennials don’t want to open up credit cards is because they are concerned about racking up debt. However, if you are using them properly, it can yield three great results: establishing or rebuilding credit, earn points, miles or cash back, and having enhanced fraud protection.
Establishing or rebuilding credit. Credit cards have a bad reputation. But if you use them correctly, they’re great tools for financial planning and money management, like funding big purchases and in case of an emergency.
Earning points, miles or cash back. Some credit cards will reward you for your spending. For some, this is the best reason to open a credit card. Just remember, don’t overspend to earn the rewards. It’s not worth it!
Having enhanced fraud protection. Credit cards have better fraud protection than debit cards. If someone steals your debit card, they have access to everything in your checking account until you and your bank can sort it all out.
Best Types of Credit Cards For Millennials
There is no one singular card that is a great fit for all millennials because it depends on your financial situation. For example, if you are trying to establish or rebuild our credit, go for a secured credit card. They don’t come with any extra perks or benefits, but using your secured card properly will help you earn good credit and open doors to better cards down the line.
If you already have good credit, but you don’t want to get too crazy into earning points and miles, a simple cashback card with no annual fee is an easy way to earn rewards without all the headache.
If you want to make a big purchase, opening a credit card can help you budget for large expenses without making a huge dent in your savings account. Look for a card with a 0% introductory APR, which will give you time to pay off that big ticket item without having to pay interest. Just make sure to pay your balance in full every month.
If you have good credit, and you want the most bang for your buck, then you’ll want a card with spending bonuses on certain categories. These usually come with additional perks, but they also come with higher annual fees.
Best Credit Cards For Millennials
|Chase Sapphire Reserve®||Best premium travel card|
|American Express® Gold Card||Best for dining & travel purchases|
|Citi Premier® Card||Best mid-tier travel card|
|Capital One® VentureOne® Rewards Credit Card||Best low-cost travel card|
|Capital One® SavorOne® Cash Rewards Credit Card||Best for dining and entertainment purchases|
|Discover It® Cash Back Credit Card||Best cashback card|
|Amazon Rewards Visa Signature Credit Card||Best for Amazon purchases|
|Discover It Secured Card||Best for building or rebuilding credit|
The Chase Sapphire Reserve offers 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $900 toward travel when you redeem through Chase Ultimate Rewards.
• 10X total points on hotels and car rentals when you purchase travel through Chase Ultimate Rewards immediately after the first $300 is spent on travel purchases annually.
• 5X total points on flights
• 3X points on other travel and dining
• 1 point per $1 spent on all other purchases
When redeeming your points for travel through Chase Ultimate Rewards, you'll get 50% more value.
This card does carry a $550 annual fee and there are no foreign transaction fees. However, you're able to earn a $300 Annual Travel Credit as reimbursement for travel purchases charged to your card each account anniversary year & up to $100 application fee credit for Global Entry or TSA Pre?®.
The American Express® Gold Card offers 60,000 Membership Rewards® points after you spend $4,000 on eligible purchases with your new Card within the first 6 months. Terms apply.
• 4X Membership Rewards Points at Restaurants, plus takeout and delivery in the U.S.,
• 4X Membership Rewards points at U.S. supermarkets (on up to $25,000 per calendar year in purchases, then 1X).
• 3X Membership Rewards points on flights booked directly with airlines or on amextravel.com.
$120 Dining Credit: Satisfy your cravings and earn up to $10 in statement credits monthly when you pay with the American Express Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, Milk Bar and select Shake Shack locations. Enrollment required.
This card has an annual fee of $250 with no foreign transaction fees (See Rates & Fees).
The Citi Premier® Card offers 60,000 bonus ThankYou® Points after you spend $4,000 in purchases within the first 3 months of account opening. 60,000 ThankYou Points are redeemable for $600 in gift cards when redeemed at thankyou.com.
• 3X Points at Restaurants
• 3X Points at Supermarkets
• 3X Points at Gas Stations
• 3X Points on Air Travel and Hotels
• 1X Points on All Other Purchases
This card comes with a $95 annual fee and no foreign transaction fees.
The Capital One VentureOne Rewards Card offers 40,000 miles once you spend $1000 on purchases within 3 months from account opening, equal to $400 in travel.
Enjoy 0% intro APR on purchases and balance transfers for 18 months; 19.74% - 29.74% variable APR after that; 3% fee on the amounts transferred within the first 18 months.
You'll earn 1.25 Miles per dollar on every purchase, every day and pay no annual fee.
This card comes with no annual fees and no foreign transaction fees which is a great choice as your go-to travel card!
The Capital One SavorOne Cash Rewards Credit Card offers $200 cash back after spending $500 on purchases within 3 months from account opening.
0% intro APR on purchases and balance transfers for 15 months; 19.74% - 29.74% variable APR after that; 3% fee on the amounts transferred within the first 15 months.
• 3% cash back on dining, entertainment, popular streaming services and at grocery stores (excluding superstores like Walmart® and Target®), plus 1% on all other purchases.
• Unlimited 5% cash back on hotels and rental cars booked through Capital One Travel, where you'll get Capital One's best prices on thousands of trip options. Terms apply.
• 10% cash back on purchases made through Uber & Uber Eats, plus complimentary Uber One membership statement credits through 11/14/2024
• 8% cash back on Capital One Entertainment purchases
This card comes with no annual fee and no foreign transaction fees.
Although we focused on credit cards for Millennials in this post, you may want to consider other cards with additional earning potential that will match your spending behavior better. For our guide on the best credit cards in other categories, check out these other posts: