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Millennials have distinct spending tastes. They like to eat out with friends, they travel regularly, they’re big online shoppers, and they prefer to spend money on experiences rather than things. That said, it makes sense for millennials to carry credit cards that fit their lifestyle.
For a more comprehensive list, see our best credit card bonuses here.
We have created a series of guides for the best credit cards for points and miles by spending category. In this guide, we’ve rounded up eight rewards cards below that match well with millennials and their spending habits.
Why Millenials Should Use Credit Cards
Some millenials don’t want to open credit cards because they’re concerned about racking up debt. But using them appropriately yields three great results: establishing or rebuilding credit, earning 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’s no one card that’s a good fit for all millennials. It really depends on your financial situation. For example, if you’re trying to establish or rebuild your credit, go for a secured credit card. They don’t come with any bells or whistles, but using a secured card responsibly can help you earn good credit and open doors to better cards.
If you have good credit, but you don’t want to get too crazy into the points and miles world, 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
Now that we’ve gone over why you should use credit cards and what types of credit cards might be good for you, here’s a list of the credit cards we think are a great fit with millennials:
Details of Each Card
Let’s get into more detail with each card below:
The Chase Sapphire Reserve® has a longstanding reputation as a great premium travel rewards card, and for good reason. Its welcome bonuses are always generous, and it comes with a variety of benefits that make frequent travel easier and more comfortable. But of course, all that comes with a very high annual fee.
We recommend Chase Sapphire Reserve® for millennials who travel a lot and want to be rewarded for it, but they’re not ready to pledge loyalty to a specific travel brand.
CHASE SAPPHIRE RESERVE®
The Chase Sapphire Reserve® card is offering 80,000 bonus points (worth up to $1,600 in travel per our valuations). You’ll need to spend $4,000 on purchases in the first 3 months from account opening to qualify for the bonus. These 80k points are redeemable for $1,200 toward travel through Chase Ultimate Rewards.
This is a premium travel card with a premium annual fee of $550. But, you’ll receive premium benefits such as 5X points on air travel, 10x points spent on hotels and car rentals when you purchase travel through Chase Ultimate Rewards® immediately after earning your $300 annual travel credit, 3X points on all other travel and dining, and 1 point per dollar spent on all other purchases.
The card also features an application fee credit (up to $100) for Global Entry or TSA Pre✓®, access to 1,300+ airport lounges with Priority Pass Select, and 50% more in travel redemption through Chase Ultimate Rewards. With Pay Yourself BackSM, your points are worth 50% more for existing purchases in select, rotating categories.
For those that spend most of their budget on food and travel, the American Express® Gold Card is a no brainer. It offers points at restaurants worldwide, supermarkets in the United States and on flights. You’ll also get dining and airline credits annually. But make sure your spending is worth the card’s high annual fee.
We recommend Amex Gold for millennials who spend plenty on food and airfare to make up for the steep annual fee.
AMERICAN EXPRESS® GOLD CARD
Terms apply to American Express benefits and offers. Enrollment may be required for select American Express benefits and offers. Visit americanexpress.com to learn more.
The American Express® Gold Card has a welcome bonus for 60,000 Membership Rewards Points when you spend $4,000 within 6 months.
Membership Rewards Points have great flexibility. We value each point to be worth up to an average 2 cents per point. At this value, 60k Membership Rewards Points can be worth up to $1,200.
The Amex Gold Card has plentiful perks. You’ll get:
- Choice between Gold or Rose Gold.
- 4X points at restaurants, including takeouts and deliveries in the U.S.
- 4X points at U.S. supermarkets on up to $25,000 per year in purchases (1X thereafter)
- 3X points on flights booked directly with airlines or on amextravel.com
- Up to $120 in annual dining credits (get up to $10 monthly statement credits)
- No foreign transaction fees
The annual fee is $250. See Rates & Fees, Terms Apply.
The Capital One® VentureOne® Rewards Credit Card is a simple travel card that offers a flat earning rate on all purchases, easy redemption options and the ability to transfer to partner loyalty programs. The welcome bonus isn’t as generous as other cards, but you also don’t have to pay an annual fee.
We recommend Capital One VentureOne for millennials seeking a low-cost card who spend lightly and only travel once in awhile.
CAPITAL ONE® VENTUREONE® REWARDS CREDIT CARD
The Capital One® VentureOne® Rewards Credit Card has an offer for 20,000 bonus miles after you spend $500 on purchases within 3 months. We value these 20k bonus miles at around $280.
This card has no annual fee. The annual fee version of this card is the Capital One® Venture® Rewards Credit Card, with better features.
The VentureOne Rewards card offers unlimited 1.25X miles on all purchases. You can redeem for statement credits for travel and gift cards. Another option is to transfer miles to airline partners. Read more on this here.
The Capital One® SavorOne® Cash Rewards Credit Card is a simple rewards card that offers a flat cash back rate on dining, entertainment, and on groceries. This card doesn’t come with an annual fee, so the welcome bonus isn’t too generous either.
We recommend Capital One SavorOne to millennials who want a low-cost rewards card for going out and enjoying the nightlife.
CAPITAL ONE® SAVORONE® CASH REWARDS CREDIT CARD
The Capital One® SavorOne® Cash Rewards Credit Card has a $200 bonus when you spend $500 on purchases within 3 months of account opening. This card has no annual fee. The annual-fee version of this card is the Capital One® Savor® Cash Rewards Credit Card.
This SavorOne card earns unlimited 3% cash back on dining and entertainment spending. Grocery store spending earns 2% cash back. All other purchases earn 1% cash back. There are no rotating categories to worry about and the cash back won’t expire while the account is open.
With the Citi Premier® Card, you’ll get a handsome sign-up bonus, generous rewards on travel and the ability to transfer to partner loyalty programs. Plus, the card’s definition of travel is very broad. Besides airfare, hotels and car rentals, it includes gas, public transportation, tolls, parking and much more.
We recommend Citi Premier for millennials who travel moderately and want to be rewarded for it as well as their commute.
CITI PREMIER® CARD
The Citi Premier® Card offers a 80,000 ThankYou Points after you make at least $4,000 in purchases within the first 3 months of account opening. These points are worth $800 in gift cards through Citi.
This card offers 3 points for every $1 spent on travel including gas stations, 2 points for every $1 spent at restaurants and on entertainment, and 1 mile for every $1 spent on all other purchases.
The card has an annual fee of $95 that is waived for the first 12 months.
The Amazon Prime Rewards Visa Signature Card offers a hugh cash back rate on Amazon and Whole Foods Market purchases, and a descent rate at restaurants, gas stations and drugstores. The card doesn’t come with an annual fee, but you do need to be an Amazon Prime member to apply.
We recommend Amazon Prime Rewards to millennials who are existing Prime members that do a lot of their shopping on Amazon and at Whole Foods.
AMAZON PRIME REWARDS VISA SIGNATURE CARD
The Amazon Prime Rewards Visa Signature Card offers no welcome bonus but charges no annual fee. If you’re a subscriber to Amazon Prime membership, this card earns you 5% cash back at Amazon.com and Whole Foods Market. If you’re not a Prime member, you will still get 3% on purchases at Amazon.com and Whole Foods.
Additionally, this card earns 2% on restaurant, gas, grocery & drugstore purchases. For everything else, you get 1% cash back.
The card also offers the following benefits:
- Travel protections
- Purchase protections
- Visa Signature benefits
- No foreign transaction fees
This card is for the Amazon or Whole Foods loyalist. There is no annual fee but an Amazon Prime membership is a must have to get maximum value from the card. For cash rewards, you might get better mileage from the Citi® Double Cash Card.
Additional Guides
While we focused on credit cards for Millennials in this post, you may want to consider other cards with additional earning potential that matches your spending behavior. Click here for our guide on the best credit cards in other categories or check out these other posts:
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