Many millennials came into the workforce during or just after the great recession. As a result, many young people do not have a credit card. If you are one of the almost 64 percent of millennials without a credit card, you may not have begun the process of building credit. How to choose a credit card may seem overwhelming, so here are some tips to help.
How to Choose a Credit Card Wisely
Opening a credit card is a big decision, and it’s important to do research before choosing one.
First and foremost, if you do have credit card, check your credit score. The higher the score the more likely you are to be approved for cards with better rates and rewards.
When researching credit cards it is important for millennials to find one that is low on fees and offers good benefits.
Next, millennials should think about what types of rewards would be most beneficial to them.
- Do you travel a lot for work or pleasure? If you answered yes look into travel rewards cards that help you build points to use towards flights or hotels.
- You can also look into cards that offer ‘cash back.’
- With these cards you receive a small amount of money, or ‘credit’ on your monthly statement, for each purchase made. Different categories of purchases, such as groceries, gas, or clothing, will offer different percentages back – often anywhere from one to five percent.
Once you have narrowed it down, be sure to check if there are annual fees, and if so how much they are. Some cards that offer rewards may have higher fees so be sure to research the fine print.
In the end, apply for the credit card that offers you the most value. And don’t forget to pay your bill on time, every month!