Best Credit Cards For Young Adults — January 2021

When you’re fresh out of college or new to the workforce, you need a credit card that helps you build your credit, offers rewards, and gives you flexibility. But what about a credit card makes it the best choice for young adults? Usually, it’s features that make it easy to build credit and affordable fees. Check out US News My Money’s top picks for January 2021 and get started finding the right card for you today.

Best Cash Back Rewards

Chase Freedom Flex

Annual fee: $0

Intro purchase APR: 0% for 15 months

Regular APR: 14.99% – 23.74% (variable)

Balance transfer fee: $5 or 5% per transfer, depending on which amount is greater

Cash advance fee: $10 or 5% per withdrawal, depending on which amount is greater

Foreign transaction fee: 3% per transaction

Credit requirements: Good to Excellent (670 – 850)

Penalty APR: None

 

The Chase Freedom Flex consistently tops lists for the best credit cards thanks to its low fees and generous rewards. With this credit card, you can qualify for a $200 bonus when you spend a minimum of $500 within your first three months of opening an account. You can earn 5% cashback on the first $12,000 you spend in your first 12 months (excluding Target and Walmart) and another 5% on up to $1,500 in combined rotating spending categories (activation required).

Besides that, you can earn 5% cashback when you book your next trip with Chase, an additional 3% on dining and drugstores, and 1% on everything else. There are no restrictions to redeem your rewards, and they never expire for the life of your account. 

 

Best Airline Credit Card

Chase Sapphire Preferred

Annual fee: $95

Intro purchase APR: N/A

Regular APR: 15.99% – 22.99% (variable)

Balance transfer fee: $5 or 5% per transfer, depending on which amount is greater

Cash advance fee: $10 or 5% per withdrawal, depending on which amount is greater

Foreign transaction fee: None

Credit requirements: Good to Excellent (670 – 850)

Penalty APR: None

 

If you plan on travel a lot in 2021 to make up for last year, make sure you have the Chase Sapphire Preferred. As one of the best travel credit cards on the market, you can receive 60,000 bonus points when you spent $4,000 or more within three months of opening your account. 

If you redeem your points using the Chase Ultimate Rewards portal, that’s essentially like $750 off your next trip. Not only that, but you can earn double the points on dining, delivery, takeout, and travel, plus one point for every dollar spent on everything else. 

 

Best Credit Card For Students

Bank Of America Cash Rewards Credit Card For Students

Annual fee: $0

Intro purchase APR: 0% for 12 months

Regular APR: 13.99% to 23.99% (variable)

Balance transfer APR: 0% for 12 months

Balance transfer fee: $10 or 3% per transfer, depending on which amount is greater

Cash advance fee: $10 or 3% per ATM withdrawal, $10 or 5% per same-day online cash advances, and $12 per Overdraft Protection Cash Advance

Foreign transaction fee: 3% per transaction

Credit requirements: None

Penalty APR: Up to 29.99%

 

This card is one of the best credit cards for students because it offers rewards for the things college students buy the most. You can earn 3% cashback on your preferred spending categories, such as gas stations, online shopping, dining, travel, drug stores, home improvement, furniture stores, and more. 

You can also earn another 2% back at the supermarket or wholesale clubs, plus 1% on everything else. 3% and 2% cashback rewards apply to the first $2,500 you spend on combined categories, but you can continue earning 1% once you hit your limit.

Bank of America offers convenient mobile banking tools that make it easy to stay on top of your account, monitor your spending, and even pay your monthly statements. You can also receive free FICO Score updates every month, including activities impacting your score and other insights to build positive credit. 

New cardholders can enjoy a $200 bonus when they spend $1,000 or more within the first three months of opening an account. This welcome offer, plus the rewards, is why US News My Money ranked this credit card as the best for students.

 

Source
  • Harzog, Beverly. “Best Credit Cards for Young Adults.” U.S. News & World Report, U.S. News & World Report, 8 Jan. 2021, creditcards.usnews.com/best-cards-for-young-adults.
Ian Schindler