The life of a millennial is not an easy one. We have to struggle with bad credit, low paying jobs, repaying exorbitant student loans, and the usual challenges of everyday life. Our parents even pressure us to provide grandchildren while we long to advance in our careers, become financially stable, and above all else, travel the world. The last thing we need is a credit card that provides little benefits and charges ridiculous interest rates.
Here are 5 simple ways to identify the best credit card for us millennial who are ready to travel the world:
- Pay attention to the fine print about interest rates and fees
Some clever bankers may have lured you in with a seemingly attractive interest rate, but these rates and fees may only be applicable when you are in the country. Some of these banks have been known to charge up to 200% more when you travel. It would be wise to avoid cards like these and to inspect your contract carefully before signing up. Most banks will offer travel credit cards that provide unique benefits to those who make purchases while traveling.
- Capitalize on airline miles
As previously mentioned, traveling the world will be one expensive venture. In fact, just one plane ticket could cost more than you make in a month. Travel miles have thus become the most popular way to finance exotic trips. We already depend on our credit cards to take us through the month, why not get rewarded for making purchases and payments? The Wells Fargo Propel American Express Card and the Chase Sapphire Preferred Card are among the best credit card for airline miles. You will receive bonus miles at sign up and it is relatively easy to redeem these points.
- Double up with frequent flyer miles
Even if you already have credit cards with airline miles you will be wasting money each time you travel if you do not sign up for cards that reward frequent flyers. While it is true that it may take a while for the points to add up, you will be quite pleased when you see how beneficial these points can be. The American Airlines AAdvantage MileUp Card is considered by some to be among the best frequent flyer credit cards.
- Seek out cards that offer cash back
Cash back is one of the best features of the modern banking industry. This is another excellent reward that can be used to offset the cost of traveling the world and making your dreams a reality. Be careful though not to use this as an opportunity to spend wildly. Cash back is only a viable reward if you spend modestly and stick to a realistic budget.
- Avoid cards that charge an exorbitant annual fee
Banks often try to convince us that it is impossible to find the travel credit cards that offer excellent rewards without paying high annual fees. Some banks charge up to $500 annually to make use of their credit cards. This is a lot of money for a millennial trying to live their best life and see the world. Some clever bakers even offer to waive this fee for the first year and then hit you with unimaginable charges in the following year.
Again, you can only avoid this if you read the fine print. When in doubt, walk away and take some time to do more research. A much better option is to opt for a card that charges no or low annual fees. The Capital One QuicksilverOne Cash Rewards Credit Card offers all of the great benefits of a credit card but charges only $39 per year.
Travel may be expensive but never forget the wise words of Jamie Lyn Beatty; “Jobs fill your pocket, but adventures fill your soul.” We young adults simply cannot afford not to travel. Travelling is one of the most rewarding ways to recharge, rewind, and relax. One of the best ways to make your trips possible is to plan your budget carefully and set realistic savings goals. It would also be wise for you to make full use of these tips to find the card that is right for you.