Millennials, This Is Why You Need A Rewards Credit Card

Millennials, This Is Why You Need A Rewards Credit Card by millennial blogger the confused millennial


Today we are shifting gears and talking financial fitness, friends!

True story: During college orientation, my mom had me sign up for my first bank account and credit card! It was a basic “student” credit card with no fees, but also, no rewards.

While it was great building my credit during those years, it would've been even better if I was actually earning something for spending that paper!

I felt so overwhelmed by all of the different rewards programs that it took roughly 10 years before I decided to take the plunge and figure out which rewards program would suit my lifestyle best.

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Before we jump into figuring out how to choose a rewards program that supports your lifestyle, I want to take a beat and tell you WHY it took me 10 years to make a change with my credit card…

You see, I am usually of the mentality “if it ain't broke, don't fix it!” and while I never had an issue with my credit, I never really thought about how I could use it to actually benefit my lifestyle and work for me. Which is what rewards programs do, they provide you some benefit so you aren't just doling out your hard earned cash money to every Tom, Dick, & Harry!

I was TERRIFIED to apply for a new credit card! The very thought would lead to a chain reaction of anxious thoughts:

“How much will this hard inquiry hurt my credit score? What is a credit score? Do I even need my credit score right now?!? I can't adult today.”

The reality, though? By not making the switch to a rewards card, I was leaving money on the table!

What do I mean by that? Well some rewards programs will literally give you cash back (which I was missing out on), others will give you travel points (so rather than spending the dollar bills earning interest in my accounts, I could've used those), and some will give you gift cards to your favorite stores (again leaving your cash money earning interest in your accounts!).

You see, finances shouldn't be scary, they should be working for us, not against us, and one simple change to start making that a reality in your life is with a rewards card. Creditcards.com makes it really easy to find the card that will best match your lifestyle with their Cardmatch tool.

Creditcards.com believes in empowering people to make smart choices around their credit cards, which means using the right card for you in the right way. Their Cardmatch tool securely matches you with offers in less than 60 seconds without impacting your credit score in any way.

 

I spent 10 years hesitating to make the change to a rewards program because I felt overwhelmed by the sheer number of options out there. I wish I had found the Cardmatch tool sooner to help make the decision process a breeze and start having my finances work for me sooner.

Ultimately we decided to get the Premier Rewards Gold Card from American Express. Since making the switch we've use this card for basically everything and earn points to enhance our travels with hotel upgrades, discounts on airfare and car rentals –> in other words, it helps me live an “insta-ready” life, without breaking the bank!

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Our card has also allowed us to leave our cash in interest barring accounts, while we spend the points instead, which leaves us feeling much more financially fit and like we are investing in our future.

[RELATED] How To Start Repairing Your Credit


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I was selected for this opportunity as a member of CLEVER and the content and opinions expressed here are all my own.

99 thoughts on “Millennials, This Is Why You Need A Rewards Credit Card”

  1. This is very interesting. I definitely think that if you can be responsible, this is a great option for you! However, as a student, I had no idea what I was doing with a credit card and I got into a lot of credit card debt…whoops. I’ll be avoiding credit for a little whiles now, but when I return– I’ll look into a rewards card!

    1. Responsibility is definitely key! I just pay mine off every week, and since I’ve never used a debit card, I look at mine as a debit card and will only spend what I know I can pay off that day (not that I pay it every day though haha)

  2. Heather Gullett Denniston

    This is so handy. I am just getting ready to change cards. I will definitely use this tool! thank you!

  3. I’ve only used bank cards and store cards (for when I’m actually going to the store – I don’t overspend and always pay off my balance immediately). I’ve only done that to actually build a decent credit score, since I didn’t have a credit score at all until I was about 20. I definitely should look into getting a rewards card. Useful post!

  4. I have been using a Discover with cash back for a number of years but just got a Chase travel rewards card and I’m LOVING it! If all goes according to plan, we will be using our rewards (hello 50,000 mile welcome bonus!) for a road trip in Utah this fall! Such a great post!

    1. I always recommend people check out their credit unions! Weirdly they aren’t as common in my state! But I’ve worked with clients who would take out a loan to purchase a car in cash, and then were only paying like 2-3% for their car a month which is insanely low for an auto loans

  5. I’ve had a debit card for about three years now and I’ve gotten to the point where I ONLY use my card and NEVER have cash – and I’m starting to question why I don’t have a credit card instead so I can start building my credit! I’m planning on looking into getting one soon, and definitely one that has a reward – perhaps cash back.

    1. I literally have maybe used a debit card once! haha and I never have cash. I think the biggest thing when switching from debit to credit, is you actually have to remember to take the additional step and pay it off even if the money is sitting there (although there is a free platform called debitize that will basically turn your credit card into a debit card and automatically pay it for you every week, but i’ve never used it)

  6. Here in canada credit cards have amazing travel rewards, I am going to be changing my credit card once we start booking trips to get more points!

  7. We have that credit card too! It’s awesome. We just got our flights for our SF trip for like 20 bucks because we used our rewards.

  8. Elizabeth Johnson

    Love this post! I wish I had gotten a credit card much sooner than I actually did. My husband and I just got one 5 months ago, and I’m 30 years old! I was so nervous to get one. I will say that waiting that long definitely prevented me from spending more than I actually have. That was what I was afraid of and making the wrong choice when it comes to credit cards. We now have one that gives cash back which is great! I told my sister, who lives in Nashville, to look into one that gives travel points. That way she can visit more! Great post!

    1. I think a lot of people are nervous about getting one! If you are nervous about spending more than you have, you may want to look into another free tool called debitize — basically it turns your credit card into a debit card so you never miss a payment and i think gives you an alert if your are spending more than you have (but I could be wrong on that last part since I’ve never used it because I am already in the habit of paying it every week or every other week)

  9. Rewards credit cards are awesome! I was able to analyze what I spend most on (gas) and pick a credit card that gives the highest percentage of cash back on gas purchases. My husband also has a rewards credit card and he loves it! I never knew about the Cardmatch tool through Creditcards.com. I’ll have to check it out for sure! 🙂
    Katie | http://www.millennialonthemove.com

  10. We LOVE our rewards cards and have literally saved like $10,000 on travel over the years. We only put things on it that we can pay for, but it’s awesome having our money (And paying our bills) work for us! Love it!

  11. this is such an awesome website. I’ve been in the market for a new credit card to help build some additional credit. Definitely checking this site out!

  12. I love this website! I recently got a rewards credit card where I earn cash back on every purchase. It’s the best decision I ever made! In a few years I plan to apply for more (when it won’t hurt my credit score 😉 )

    1. That’s awesome! Just to clarify: any time you apply for credit it WILL “hurt” your score since it’s a hard inquiry your score will always drop, but usually not by much or for very long (your score is always weighted by most recent activity) and it only sticks with you for two years!

  13. SUCH a good resource, Rach. My first credit card was *because* it had rewards, because I knew I wanted to study abroad for a summer and wanted travel points to cover my airfare – which they ended up doing! Rewards on cards are SO SO IMPORTANT (+ helpful!).

    Coming Up Roses

  14. My husband has a rewards credit card and it’s so beneficial for us. One I pay off my tiny credit card that I have now, I think I’m going to switch to a rewards one. Credit cards are so scary, but honestly, it’s the only way to build credit!

    1. They don’t need to be scary either! IF you look at them as a debit card and only spend what you have and just get in the habit of paying it every time you use it or every week it’s doesn’t need to be scary!

  15. I wish I could do this but I have proven to myself multiple times that I shouldn’t have a credit card. After signing up for several credit cards between 2012-2015, I am now $5,000 in cc debt in addition to $30,000 in student loans.
    Most people would probably benefit from this program. I would love to be a partof it and wish I could be ?

    1. If you ever sign up for one again you should check out debitize – it’s a free tool that basically turns your credit card into a debit card and helps you from over spending what you don’t have.

  16. Courtney Patterson

    We both have cards that give us incredible return on miles. So much so, that we haven’t paid for flights in about five years. Why people are still hesitant to change to cards that reward them is beyond me.

  17. Such a smart post Rachel! I have a rewards card but don’t use it that much… credit still scares me since I’m still in school and I’m very loyal to my debit. Once I get a full time job this year I really need to switch over to paying more on credit!

    xoxo A
    http://www.southernbelleintraining.com

  18. Love this! having rewards cards ROCKS! We pay all of our bills with them (and then put cash towards that) and it helps us so much with traveling!

  19. Great advice! We have a rewards card through the bank we use and it’s great! When we were wedding planning we opened a credit card just for those expenses (and still paid it off as we went) – it was a travel one where you get a certain number of free miles if you spend $3k in 3 months. We spent way more than than on our wedding and ended up getting one full plane ticket to Ireland for free!

  20. Yes! I think as long as you’re able to pay it off each month and stick to budgets, a credit card with rewards is a great idea! I get paid for spending the money I’d normally spend each month!

  21. I love my rewards card! I save so much with it, and it’s so worth it. I pay it off obsessively every few weeks, but it’s totally worth that extra step 🙂

  22. Great post! I personally used creditkarma, which gave me recommendations and a free credit score. I started with a Discover It, but I absolutely love my Chase Sapphire for the rewards!

    | diaryofasouthernmillennial.com

  23. This is awesome advice. I switched to a rewards card recently and it was the best idea i’ve had!

  24. This is great! I have 2 rewards credit cards – scratch that, 3 – but I need to ditch one and replace it with another. This site will be very helpful!

    xoxo Lauren | Glitter & Grandeur

  25. I totally use credit cards to my advantage. I pay for everything with them to rake in rewards but always pay off the balance immediately!

  26. I so agree! I think a lot of people are like, “oh i don’t want to open another credit card!” but SO many companies will let you consolidate or transfer any balance you have and if you do your research it’s better in the LONG term to have a CC that actually works FOR you! Plus, it can really help a young person build a substantial credit score for later in life!

  27. I have been needing this kind of post! I have been researching around for the best credit card- there are so many options it’s overwhelming!

  28. Having a credit card with perks is HUGE! I had a whole trip (flight wise) paid for last year because of my Venture card. I mean, if you’re spending anyway – why not get rewards back right?! Love this!!

  29. I only have one credit card at the moment and don’t plan on getting another one anytime soon, but I have a Discover Card that gives cash back which has been awesome! My bf uses the Capital One Double Cash card currently and he loves it. I’ll have to show him this site!

    Kayla | kaylablogs.com

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