The world of personal finance can be a maze for millennials, especially when it comes to credit cards. But worry no more, because Flik Eco has got your back! We've researched and analyzed the best credit cards for people in their 20s, and in this article, we're going to break down the top options for those who are just starting their financial journey. So, if you're ready to make wise decisions about your money and build your credit history, read on!
Best Credit Cards For People In Their 20s Table of Contents
Criteria to Consider When Choosing a Credit Card
Before we dive into our top picks, let's go through the essential factors that you need to consider when selecting a credit card:
Rewards and Cash Back
Look for cards that offer attractive rewards and cashback programs, such as points on every purchase or percentage cash back on specific categories.
Low or No Annual Fee
In your 20s, it's best to minimize your expenses. Therefore, look for cards with low or no annual fees.
Low Interest Rate
Although we encourage paying off your balance in full each month, a low interest rate can still save you money in case you carry a balance occasionally.
Sign-up Bonuses
Some cards offer valuable sign-up bonuses, which can give you an extra boost in your rewards or cash savings.
Credit Building Features
Look for cards that can help you build your credit history by offering free credit scores, pre-qualification checks, and positive reporting to credit bureaus.
Best Credit Cards for People in Their 20s
Keeping the above criteria in mind, here are our top credit card recommendations for millennials:
1. Chase Freedom Unlimited
- No annual fee
- 1.5% cash back on all purchases
- 0% intro APR on purchases for 15 months
- Sign-up bonus: $200 cash back after spending $500 in the first 3 months
- Free credit score access
2. Discover it Cash Back
- No annual fee
- 5% cash back on rotating categories (up to $1,500 in purchases per quarter)
- 1% cash back on all other purchases
- Sign-up bonus: Discover matches all cash back earned at the end of the first year
- Free credit score access & pre-qualification check
3. Capital One QuicksilverOne
- $39 annual fee
- 1.5% cash back on every purchase
- Access to a higher credit line after making your first five monthly payments on time
- Free credit score access
Best Credit Cards For People In Their 20s Example:
Let's take a look at how using one of our recommended credit cards could benefit a millennial in their 20s. Meet Jamie, a 24-year-old who just started their first office job, earning $45,000 a year. Jamie decides to go with the Chase Freedom Unlimited credit card.
By using the card for everyday purchases such as groceries, gas, and dining out, Jamie spends about $1,000 per month on the card and earns 1.5% cash back - translating to $180 in cash back rewards over a year. In addition, Jamie can take advantage of the $200 sign-up bonus after meeting the spending requirements.
Not only does Jamie save with cash back rewards, but they also build their credit history by using the card responsibly, paying the balance in full each month, and enjoying free credit score access.
Congratulations, you've made it to the end of our guide on the best credit cards for people in their 20s! Now that you're equipped with the knowledge and options to choose the right card for you, it's time to take control of your financial future. Don't forget to share this article with your friends and explore more guides on Flik Eco to continue your personal finance journey. With the right tools in hand, you can make your 20s the decade of smart financial choices and a strong foundation for the rest of your life!
