This post is about the credit cards recommended for young adults to build points. Understanding 10 Common Award Travel Myths is the first step. Knowing your habits and having a clear understanding of your goals are long-term strategies to build and improve your credit score while earning rewards from your daily commute to everyday expenses,” Brady reiterated.
I continue to unlock the conversations of Brady Yu, Co-founder of TripPlus, and Ava Lee, a college student, about Award Travel for the young professionals and college students. Ava came ready with her and her friends’ habits and plans. Let’s see how Brady deconstructed each of them with five credit card recommendations.
Habit #1: Pay my monthly rent.
Usually, you can pay your rent with cash or use a credit card through services like Plastiq. Those services come with a bunch of fees that can totally cramp your style. In fact, those fees can eat up the rewards you earn on your credit card!
Now, Bilt Mastercard® comes to the rescue with a solution.
- Pay your rent with it, and there are no pesky fees.
- Earn 1 point for every dollar you spend on rent.
- You can rack up these points up to 100,000 every year.
That’s like getting bonus points for something you’re already doing. Cha-ching!
There are some other pretty sweet ways to stack up your earnings – it’s all about finding what suits your style and goals.
- Grab your takeout from fast food restaurant and go bar hopping: 3 points per $1 spent on dining.
- Fly back home at Thanksgiving by plane: 2 points per $1 spent on travel.
- All around spending: 1 point per $1 spent on all other purchases.
You can even score some rare perks with no annual fee!
- Double points on all non-rent purchases on Bilt “Rent Day” (a 24-hour period on the 1st of each calendar month) – Imagine 6x dining and 4x travel!
- Primary auto damage collision damage waiver*
- Cell phone protection*: Up to $800 in coverage, with a $25 deductible.
- Trip cancellation/interruption protection*: Up to $5,000 reimbursement
- Transfer points 1 to 1 to airline and hotel programs (including American Airlines, United, Aeroplan, Hyatt, Holiday Inn, and more)
- No foreign transaction fee
*Make sure you pay for the rental car, cell phone bill, travel with the card.
The catch: You need to make 5 total transactions per month with the Bilt Mastercard® in order to earn points.
Habit #2: Want simplicity for everyday spending as a busy young professional.
Looking for a straightforward rewards card that won’t give you a headache? The Citi® Double Cash is your buddy. Here’s why:
- No annual fee.
- You get 2% back on everything you buy – 1% when you swipe, and another 1% when you pay the bill.
- Want to build up those good credit habits? The sooner you clear your balance, the quicker you snag that second 1% cashback. It’s a good reminder to pay off your card in full to avoid those interest charges.
Now, here’s where it gets interesting:
- If you pair it up with the Citi Premier®, you can turn your points into airline and hotel rewards. That means vacation time!
- Pair it with the Citi Rewards+®, and you get a 10% points rebate each year, up to 100,000 redeemed points. More freebies for you!
But, just to keep things real:
- There’s no sign-up bonus, so don’t expect an initial cash splash.
- If you’re a globe-trotter, watch out for the 3% foreign transaction fee. It’ll eat into your rewards.
- While there’s no 0% intro APR on purchases, they do offer a 0% intro APR on balance transfers for 18 months. After that, the regular APR is 19.24% – 29.24%. (Cautious!)
Habit #3: Dine out quite often with my friends.
No annual fee, solid earnings, and flexible cash back make the Chase Freedom Unlimited® a great choice for beginners. It’s also perfect for those who know exactly how they spend their money on rideshares, dining, takeout & delivery, and making purchases at pharmacy.
This card has very solid earning structure:
- 5% on travel booked through the Chase Ultimate Rewards® travel portal.
- 5% on Lyft rides (until March 2025).
- 3% on dining and drugstore purchases.
- 1.5% on everything else.
Imagine the possibilities – whether it’s an auto repair shop, a dental office, or a hair salon – even those big purchases that don’t fit into a bonus category will earn you 1.5% in rewards.
If you apply for the card with the current welcome bonus, you’ll earn an extra 1.5% on your spending, up to $20,000 in your first year. Imagine the big expenses that come your way in your first year at work. This card is the perfect fit.
More perks that are rare in $0 annual fee card:
- Auto Rental Coverage
- Trip Cancellation / Interruption Insurance
- Extended Warranty
- Damage and Theft Protection
Habit #4: Mostly cook at home, do my shopping online, and commute by car daily.
For a $0-annual-fee card, Blue Cash Everyday® Card from American Express pays an excellent cash-back rate at U.S. supermarkets, U.S. gas stations and U.S. online retail purchases.
- 3% at U.S. supermarkets, capped at $6,000 per calendar year.
- 3% for U.S. online retail purchases, capped at $6,000 per calendar year.
- 3% at U.S. gas stations, capped at $6,000 per calendar year.
- 1% on other purchases
Here are some cool perks:
- Love streaming movies and sports events? Get $7 back every month when you spend at least $9.99 on the Disney Bundle, which can include Disney+, Hulu, and ESPN+.
- Looking for hassle-free cooking? With Home Chef, you can earn up to $15 in statement credits every month, totaling $180 a year for their pre-portioned ingredients and recipe service.
- Enjoy a 0% introductory APR on purchases and balance transfers for the first 15 months from the date of account opening. (Be cautious of high APR afterward, ranging from 19.24% to 29.99%.)
But there’s a catch:
- There are spending limits on bonus rewards.
- Watch out for a foreign transaction fee of 2.7% on each transaction.
- The welcome offer requires a high spending of $2,000 in the first 6 months.
Habit #5: Often shop at supermarkets.
If you’re all about supermarket shopping for your essentials like perishables, bread & bakery, frozen foods, snacks, personal care, pet care, and cleaning supplies, the Amex EveryDay® Credit Card is your go-to!
Young professionals or college students can also make the most of this card if they want to explore the American Express Membership Rewards (Amex MR) ecosystem. It’s your gateway to dive into points and miles.
Later, you can upgrade to fancier Amex cards that channel rewards into the same Amex MR account.
Here is the basic earning structure:
- Earn 2X rewards at U.S. supermarkets.
- Score a 20% bonus if you use the card enough. (20 times. Literally almost … every day!)
- $0 annual fee with welcome offer – Earn 10,000 Membership Rewards Points.
The catch:
- Foreign transaction fee: 2.7% of each transaction. (Don’t bring it when travel abroad!)
- Welcome offer requires a high spending of $2,000 in the first 6 months.
Want a holistic view to decide what kind of cards fit your habit(s)?
I put their conversations into a credit card decision tree! Follow it and see which one fits you!
Have you ever wondered why you should get a credit card. Do you have any ideas what benefits a credit card will bring you?
Stick around – Brady and Ava will talk about the reasons and advantages of getting the credit cards in the States next week as young professionals, college graduates and students (and even those new to the U.S.)!
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