Gen Z is the largest age group today. Born in 1997 and onward, Gen Z makes up nearly 32% of the world’s population, outpacing Millennials and Baby Boomers.
The oldest members of this group are just now in their early 20’s. With skyrocketing education costs and stiff competition in the workforce, you face unique challenges if you’re part of this age group.
As you begin your professional career and start living independently, a good credit card can help you finance your expenses, budget, and earn rewards. But with limited credit histories, finding the right card can be difficult.
4 best cards for Gen-Z
We scoured credit card offers to find the best credit cards for Gen Z-ers. Whether you’re looking to build your credit history or earn valuable rewards, one of these cards is sure to be a good fit.
1. If you want to improve your credit: Secured Mastercard® from Capital One
When you’re in your teens and 20’s, you probably don’t have the best credit. If you have poor credit or no credit at all, getting approved for a traditional credit card may be impossible. However, that doesn’t mean you’re stuck forever. You can build or improve your credit history by applying for a secured credit card. With a secured card, you put down a security deposit which acts as your credit limit.
As you make payments on the card, the credit card company reports your payments to the credit bureaus. Over time, a history of on-time payments can help boost your credit.
With the Secured Mastercard® from Capital One, there’s no annual fee. Make the minimum required security deposit and you'll get an initial credit line of $200. Plus, deposit more money before your account opens to get a higher credit line. Be automatically considered for a higher credit line in as little as 6 months with no additional deposit needed.
2. If you’re looking for a student credit card: Journey Student Rewards from Capital One
As a college student, you have a unique opportunity to get a credit card, even if you have a limited credit history. Student credit cards are designed specifically for college students, allowing you to build your credit and establish good habits.
The Journey Student Rewards card from Capital One is an excellent choice. Unlike most student cards, which don’t offer rewards, you can earn 1% cash back on all of your purchases. Make all of your payments on time, and that can jump to 1.25% cash back. Even better, there are no annual fees or foreign transaction fees, so it’s a great card if you plan on studying abroad.
3. If you want to start earning cash back: Credit One Bank® Visa® Credit Card with Cash Back Rewards
After you graduate and become more financially stable, it’s time to transition to a traditional credit card, rather than a student or secured card. As your credit improves, you can qualify for valuable rewards cards, helping you earn points or even cash back.
If your credit score is fair — meaning its between 650 and 699 — you can qualify for the Credit One Bank® Visa® Credit Card with Cash Back Rewards. Qualified applicants will receive exclusive benefits such as 1% cash back rewards on all purchases, no annual fee, and a competitive APR. Terms apply. And, if you are an iPhone user, use your Apple device to make purchases securely through Apple Pay®. Apple Pay is a registered trademark of Apple, Inc.
4. If you plan on traveling: Chase Sapphire Preferred® Card
As a member of Gen-Z, you likely prioritize travel. If that’s the case, it’s a good idea to sign up for a solid travel rewards credit card. You’ll get valuable rewards and benefits that can enhance your travel — and help you save money.
One of the best cards available is the Chase Sapphire Preferred® Card. You’ll get 80,000 bonus points when you spend at least $4,000 within the first three months of opening an account. That's $1,000 toward travel when you redeem through Chase Ultimate Rewards®. Plus earn up to $50 in statement credits towards grocery store purchases within your first year of account opening.
You’ll also earn 2X points on dining at restaurants including eligible delivery services, takeout and dining out and travel & 1 point per dollar spent on all other purchases. There’s no foreign transaction fees, and it’s a Visa, making it an excellent choice for international trips.
Choosing a Credit Card
As a member of Gen-Z, it’s important to focus on building your credit history while you’re young; it will pay off later on as you apply for apartments, try to take out a home loan, or even when you buy a car. Choosing the right credit card can help you boost your credit while stretching your budget further.
Still looking for a new credit card? Check out the best credit cards of 2019.
Editorial Disclaimer: Information in these articles is brought to you by CreditSoup. Banks, issuers, and credit card companies mentioned in the articles do not endorse or guarantee, and are not responsible for, the contents of the articles. The information is accurate to the best of our knowledge when posted; however, all credit card information is presented without warranty. Please check the issuer’s website for the most current information.