When millennials are looking to build a solid credit history, rewards cards offer some excellent choices. This personal finance approach is much more efficient than using cash for purchases and many of these credit cards grant carrier rewards that far exceed anything that is usually offered through bank debit cards. This way, you can establish a strong credit history, manage most of your purchases in a single location, and take advantage of rewards programs that are most closely tailored to your financial situation.
Of course, not all credit cards rewards programs are created equal — and some will be much better suited to your financial situation than others. Some banks will allow you to consolidate your existing debt and transfer your previous balances at highly attractive interest rates. Others will offer cash back for qualifying purchases or eliminate the requirements for annual fees. Here, we look at 3 excellent card options.
Cash Back Rewards: Capital One QuicksilverOne Cash Rewards Credit Card / Capital One JourneySM Student Rewards Card
Those looking for cash back rewards on their purchases have two good choices. First is the Capital One QuicksilverOne Cash Rewards Credit Card, which offers a very attractive 1.5% reward on all purchases made with the card. New cardholders will also enjoy 0% interest on purchases until September 2015. It should be remembered that these rewards are only paid out when you pay your balance in full every month, so if you are looking to carry a balance this card might not be the best choice. This card does come with a $39 annual fee, but if you are looking to make most of your regular purchases with the card (and keep your payments up-to-date) the cash back rewards will more than cover this.
You can apply for the Capital One QuicksilverOne Cash Rewards Credit Card here.
Next is the JourneySM Student Rewards Card, which is also offered by Capital One. This card offers 1% cash back on all purchases and an additional 0.25% cash back bonus during months where your balance is paid on time (bringing the potential cash back amount to 1.25%). As an added plus, here is no annual fee and no foreign transaction fees for purchases made when travelling.
You can apply for the JourneySM Student Rewards Card here.
Lanpass Secured Credit Card
For college students and recent graduates lacking sufficient credit history to get approval, a secured credit card is another alternative. The Lanpass Secured Credit Card is one of the best choices here. An initial deposit of $300 is generally required for approval, and you will receive 5,000 bonus airline miles after you make your first purchase (along with 1 bonus mile for each $1 you make in purchases). Cardholders receive 10% discounts when making purchases from a LAN partner (many airlines fall into this category), and there is no annual fee for the first year. The annual fee increases to $25 during the second year but the card can be cancelled before then, allowing you to build your credit history in the process.
You can apply for the Lanpass Secured Credit Card here.