Whether you’re just starting out with managing your finances and require credit cards with benefits on spending categories like gas bills, grocery stores, and dining or you’re a young adult with a career that requires you to travel quite frequently and you’re looking for cards with added travel bonuses, this list offers the best credit cards for the young adults in 2022 and forward.
Most prefer not to take credit cards or are apprehensive about signing up for them because it might often be complex and trap them in high-interest rates and debt.
But if used wisely, credit cards can actually help you out in your financial journey as a millennial and can cut costs in a way.
Related: 6 Best Money Habits to Start Before You Turn 30
What Are The Best Credit Cards For Young Adults Of 2022?
1. The Chase Trifecta
This isn’t a single credit card, but a combination of 3 Chase credit cards when used together, can boost your rewards when used in the right spending categories.
I’m aware that the young adults of today would want to keep their finances as simple and crisp as possible by just using a single credit card but using this Trifecta can help you maximize savings and effectively cut costs.
The Trifecta consists of
- Chase Freedom Unlimited ® Credit Card.
- Chase Freedom Flex ® Credit Card.
- Chase Sapphire Reserve ® Credit Card.
Let’s look into these cards individually in detail –
Chase Freedom Unlimited ®
The Freedom series of cards offered by Chase are primarily rewards cards and are perfect for young adults to receive cashback.
Benefits at a glance –
- Earn 1.5% cashback on all purchases.
- Earn 3% cashback on dining services which is inclusive of takeout on eligible delivery services and drugstore purchases.
- Earn a 5% cashback on travel when booked through the Chase Ultimate Rewards Portal.
- New Cardholder bonus – Receive $200 cashback if you spend $500 within the first 3 months of opening an account.
Also, you get a cashback of 5% on the first $12,000 spent on grocery purchases (unfortunately this excludes Target and Walmart) in the first year of opening an account!
So you could basically get a reimbursement of $800 at the end of your first year with Chase Freedom Unlimited ® - No annual fee
Chase Freedom Flex ®
Another one of Chase’s reward cards with benefits is quite similar to the Freedom Unlimited ®. The main difference between the two is that you can earn 5% cashback up to $1,500 on quarterly spending in categories decided by Chase every quarter using the Freedom Flex ®.
So if you maximize your spending on the category that Chase has chosen for that particular quarter, you can save a decent amount.
For example, the category of 5% cashback for the final quarter of 2022 (October to December) is Walmart and PayPal. Any transactions made on these two would make you eligible for the cashback. The card holds no annual fee.
Chase Sapphire Reserve ®
This card is part of their premium card categories and is slightly on the higher side. Even though the annual fee for holding the card is $550, you can actually gain that back through their various reward schemes.
If you’re an avid traveller, this card is perfect for you. It offers excellent rewards for travel.
Benefits –
- For travel, on the Sapphire Reserve ® Credit Card one point is the equivalent of 1.5 cents. Whereas on the other Chase Cards it’s 1 cent/point for travel.
- 5 points per dollar for travel spending through the Chase Ultimate Rewards Portal after the first $300 is spent on annual travel purchases.
- 10 points per dollar spent on car rentals and hotels after the first $300 is spent on annual travel purchases.
- 10 points per dollar on all dining through the Ultimate Rewards Portal.
- 3 points per dollar on another dining (not through the Ultimate Rewards Portal.)
- 1 point per dollar on every other purchase.
- Annual $300 travel credit, just for having a Sapphire Reserve ® card!
- 60,000 points bonus on the first $4000 spent on the card in the first 3 months of account opening.
Each of these Chase Cards has benefits of its own, now when used together in the correct spending categories, here are the perks you could derive –
- Travel points and related savings via Sapphire Reserve ®
- Drugstore and grocery points via the Freedom Unlimited ® and Freedom Flex®
- 1.5% cash back on every single purchase via the Freedom Unlimited ®.
- $300 annual travel credit via Sapphire Reserve ®
2. Capital One – Quicksilver
Capital Ones’ Quicksilver ® Card is pretty basic when it comes to benefits, it’s a good card, to begin with on your financial journey.
For application, this card does not really require any credit history so it’s perfect for first-time credit card users.
Quicksilver holds no annual fee and offers 1.5% cash back on every purchase and a beginner bonus of $200 if you spend $500 in the first 3 months.
Apart from this, Quicksilver ® has some added perks when it comes to travel, dining, online shopping, and select entertainment.
Enjoy an unlimited 5% cashback on hotel bookings and car rentals when booked exclusively through Capital One Travel.
3. Citi Custom Cash®
This credit card has a unique reward scheme that gets you $25+ cashback every single month! You receive a 5% cashback up to the first $500 in your top spending category. These spending categories include:
- Restaurants
- Drugstores
- Gas Stations
- Select travel, transit, and streaming services
- Home improvement stores
- Fitness clubs
- Live entertainment.
Whichever category you spend the most in, say, fitness clubs, you will receive 5% up to the first $500 and 1% for the rest of the amount you’ve spent at the fitness club. Occurs on a monthly basis.
The rewards are earned through Citi bank’s very own ThankYou® points which can then be converted into direct cashback through a check, direct deposit, or statement credit.
If you prefer gift cards, travel reimbursements, or points for Amazon shopping, Citi offers those options too!
4. American Express Gold®
An apparent downside of this card, something that would probably make millennials apprehensive to sign up for it is the $250 annual fee.
I still add this to the list because of the rewards and benefits they offer in plenty.
If you just take a look at the return credits alone which is $120 in two separate categories you already have $240 back in your pocket! So really, what’s a $10 annual fee going to change?
Working on the points system, the Amex Gold is also a good option for the youth as you can redeem these points to earn cashback on several categories.
This card is especially good for young adults that like to hop across all the best restaurants in town and usually spend a lot on food every month.
Benefits –
- 4 points per dollar for all restaurants worldwide. This includes takeout and delivery but only for the US.
- 4 points per dollar on groceries for up to $25,000 annually.
- 3 points per dollar on flights booked directly with the airline or on amextravel.com.
- 1 point per dollar on all other eligible purchases.
Apart from these reward points Amex also offers $120 dining credit annually with its partnered brands like The Cheesecake Factory, Grubhub, select Shake Shack locations, and many more!
This is on a monthly basis so you can receive a cashback of up to $10 every month when you use your Gold® at the restaurants mentioned above.
Another benefit added to the list is the $120 credit given annually on Uber Eats or rides which is again redeemable monthly up to $10!
Even though I’ve been talking a lot about food-related reward schemes, the American Express Gold® offers great perks when it comes to travel as well. Let’s talk about ‘The Hotel Collection.
A stunning feature provided to Gold® Card holders, The Hotel Collection includes special treatment and services plus a $100 credit that can be used for hotel facilities like dining, spa, golf course, and many more!
Partnered with some of the best names in the luxury hotel industry like Hyatt and Hilton to name a few, Gold® users really do get the royal treatment! Not to mention, a complimentary room upgrade (if available) at check-in.
The Hotel Collection includes ultra-luxurious properties and resorts in cities of over 30 countries across the globe. From London to Hong Kong, Amex has got you covered!
Up to You
Well, that just about sums it up, all the cards in this list have unique benefits of their own, all represented through different schemes.
Be it cashback or reward points, it’s up to you to decide which card fits you best based on what your categories of spending are! If it’s leaning more toward food, I’d say go for the Amex.
If you tend to spend a lot on everyday necessities try out Chase Freedom cards. Remember, spend smart and use credit cards wisely.
Take complete advantage of the schemes they provide, it really is useful when it comes to travel and food.
