According to recent studies, large numbers of millennials don’t want to get credit cards. They try to stay as far away from them as possible, because they don’t want to add even more to student debt. But this doesn’t mean that millennials aren’t using credit cards. About 80% of them are. And almost 50% of them have at least 3 credit cards. So what are the most popular credit cards with millennials? We found three that are best suited to meet the needs of the younger generation.
Cash back credit cards
Just like the name says, cash back credit cards can give some of the money that you spend on purchases back to you. Credits range from 1% to 5% and they are usually capped at $500 of spending in certain categories, depending on the card. When you collect a minimum amount of credit, you can ask to be paid back through a check, or you can use that money to buy stuff at designated stores.
Some cash back credit cards offer you a flat amount of money, based on everything that you purchased, but not on how much you spent, while others offer different levels of rewards, depending on how much you spend.
Credit cards for consolidating high-interest debt
Student loan debt is horrible, especially if those loans come high interest rates. And if you add any other debt to them, then the consequences can be disastrous. But it doesn’t have to be this way. You can consolidate your loans to a single low-interest credit card and not only will you get rid of those high rates, but you will also simplify your entire financial life.
A lot of these cards have 0% introductory APRs and no balance transfer fees for a certain period of time. They’re perfect for young adults who are just starting their financial lives.
Travel rewards credit cards with no annual fee
Millennials love to travel. So it makes sense that they would also love credit cards that offer travel rewards. They can use them to get discounts for plane tickets, rental cars, restaurants, hotels and more. And if a travel rewards credit card with no annual fee or foreign transaction fee, then it is definitely a millennial’s best friend.