The Best Credit Cards for Millennials in 2022

It’s no secret that millennials prefer to spend more on creating memories and having unique experiences than buying things to make them happy. In fact, a 2014 survey by Harris showed 78% of those born between 1980 and 1996 would rather pay to attend events or have memorable experiences versus “buying something desirable.”

With that in mind, it’s clear that the ideal credit cards for millennials should focus on the types of things they’re interested in most — traveling and making memories around the world, dining with friends and family, celebrating with nights out on the town and online shopping. Most importantly, they should allow cardholders (of any age) to earn valuable points and miles or cash-back rewards on the purchases they’re making anyway so they can keep funding these things in the future.

Below, CNBC Select details the best credit cards for millennials who want to save money on the things they love most and put those rewards toward memorable experiences.

Who’s this for? Not only is the Citi Premier® Card an ideal choice for millennials, but it’s also a great pick for those who are just starting out with travel rewards credit cards in general. Its modest annual fee and lucrative welcome bonus get you off to a great start and you’ll rack up rewards for all your everyday purchases made at supermarkets, restaurants, gas stations, flights and hotel stays.

Other great perks: Besides never having to worry about paying foreign transaction fees, cardholders also have access to an up to $100 annual hotel savings benefit, which can be used to book a hotel stay of $500 or more through the Citi travel portal.

How to redeem rewards: To get the most value for your ThankYou points, transfer them to one of Citi’s hotel or airline partners, which include Wyndham Rewards, Choice Privileges, JetBlue TrueBlue, Singapore Airlines KrisFlyer and Virgin Atlantic Flying Club. Otherwise, points can be redeemed for travel, gift cards or cash-back via thankyou.com or you can receive statement credits when you use the card to pay for purchases made through Amazon or PayPal.

Who’s this for? If you’re looking for a card that lets you rack up points on a variety of common spending categories, all while having a reasonable annual fee and many travel benefits, look no further than the Chase Sapphire Preferred® Card.

Other great perks: This card was created with travelers in mind, offering benefits such as primary rental car insurance, trip cancellation and interruption insurance, baggage delay insurance and other peace-of-mind protections. You’ll also score discounts on GoPuff, DoorDash and Instacart+ purchases, receive a 10% points boost on each card anniversary and an up to $50 hotel credit that applies to stays booked through Chase Ultimate Rewards®.

How to redeem rewards: You’ll get the most value by transferring your points to any of Chase’s 14 airline and hotel partners, such as United Airlines MileagePlus, Southwest Airlines Rapid Rewards, Air Canada Aeroplan, World of Hyatt, IHG One Rewards and Marriott Bonvoy. Otherwise, your points are worth 1.25 cents each through the Chase Ultimate Rewards® travel portal or via Chase’s Pay Yourself Back feature or 1 cent per point when redeemed for gift cards or cash back.

Who’s this for? Millennials who are looking forward to doing some “revenge travel” and foodies everywhere should consider the Chase Sapphire Reserve®, which offers a ton of benefits as well as the opportunity to earn rewards points on travel and dining.

Other great perks: Cardholders enjoy a number of premium travel benefits including a Global Entry, TSA PreCheck or NEXUS application fee credit; an up to $300 annual travel credit; Priority Pass airport lounge access; a robust suite of travel and purchase protections; extra perks like complimentary breakfast and room upgrades when you book stays through The Luxury Hotel & Resort Collection; and VIP access to events and experiences.

How to redeem rewards: As with the Chase Sapphire Preferred® Card, points can be redeemed for hotel stays, flights, car rentals and other travel elements either through the Chase Ultimate Rewards® travel portal or by transferring them to any of Chase’s 14 travel partners. However, points are worth 1.5 cents per point when you book through the Chase travel portal, so there’s a better value available that way by having this card.

Who’s this for? For millennials who are interested in receiving as many cash-back rewards as possible, the Discover it® Cash Back makes a great choice no matter what your spending style is like these days — as long as you check Discover’s 5% Cash Back Calendar where you’d have to enroll every quarter to earn 5% cash back on up to $1,500 in purchases made in various categories throughout the year.

Other great perks: This card offers an unlimited match, dollar-for-dollar, of the cash back you earn during your first year as part of its Cashback Match feature, so if you really use this card a lot, you could end up with a nice end-of-the-year bonus. It also offers a 0% intro APR for 15 months from account opening on purchases (after, 15.74% to 26.74% variable APR).

How to redeem rewards: Cash-back rewards can be deposited straight into your bank account, redeemed as statement credits or used to pay for Amazon.com or PayPal purchases.

Who’s this for? The American Express® Gold Card is a great option if you’re a foodie and want to earn rewards points to put toward future travels.

Other great perks: If you plan on using all the benefits regularly, the American Express® Gold Card can pay for itself. Cardholders receive up to $120 in annual dining credits ($10 per month) when they enroll and use their card to pay for dining through Grubhub and at The Cheesecake Factory, Milk Bar, and select Shake Shack restaurants — and up to $120 worth of Uber Cash annually ($10 each month once you enroll by linking your Amex Gold Card to your Uber account). The card also offers various travel benefits like *car rental loss and damage insurance, baggage insurance and special perks on stays booked through The Hotel Collection. Terms apply.

How to redeem rewards: American Express Membership Rewards® points can be redeemed for gift cards and statement credits, or used to book travel through the Amex Travel Portal. To get a potentially bigger bang for your buck, transfer your Membership Rewards points to any of Amex’s airline or hotel partners, including Delta SkyMiles, JetBlue TrueBlue, Hilton Honors, Marriott Bonvoy, Choice Privileges and more.

Who’s this for? The Amazon Prime Rewards Visa Signature Card is a top choice for busy millennials who prefer to do their shopping online. In addition to Amazon purchases, the card also lets you earn extra rewards for shopping at Whole Foods Markets, restaurants and gas stations.

There’s just one catch: You’ll need to have an Amazon Prime membership to take full advantage of this card’s benefits — otherwise, the Amazon Rewards Visa Card makes a good alternative, offering a slightly lower welcome bonus and lower rewards-earning rates.

Other great perks: You’ll never have to worry about paying foreign transaction fees when using this card abroad. Cardholders also have access to a suite of Visa Signature perks, such as lost luggage reimbursement, travel accident and baggage delay insurance, auto rental collision damage waivers, extended warranty and purchase protection.

How to redeem rewards: Cashback earned with this card can be redeemed toward Amazon purchases or simply deposited into your bank account.

What types of credit cards are best for millennials and young adults?

The best credit card for you will depend on several factors, such as the benefits it offers, how easy it is to rack up rewards, the kinds of rewards you’re interested in earning (cash-back vs. points for a future trip), its annual fee and whether or not there’s a generous welcome bonus being offered. Your credit score will also play a factor in what cards you can even qualify for.

How do you get a credit card as a young adult?

Young adults can be added as authorized users on someone else’s account and can apply for their own credit cards once they turn 18. Beware that according to the Credit Card Accountability Responsibility and Disclosure Act of 2009, anyone under the age of 21 must have a co-signer (typically, a parent or legal guardian) or submit financial information showing they can independently pay off the balance they mean to borrow.

Most of the cards on this list require good or excellent credit (scores above 670) to get approved so it’s important to check your credit score before applying. If have a limited credit history or need to work on building your credit, consider signing up for a no-annual-fee secured credit card such as the Discover it® Secured Credit Card or the Capital One Platinum Secured Credit Card. These types of cards allow you to make a security deposit, which varies based on your creditworthiness and will act as your credit limit. If you continue to pay your monthly bills on time and in full for at least seven months, you’ll have the opportunity to have your account reviewed and potentially changed to an unsecured card, at which point your deposit will be returned.

Student credit cards can also be beneficial, depending on your spending habits, and can be a great way for students to get started on their credit card journey.

What is the average credit card debt for millennials?

A recent survey conducted by Real Estate Witch showed 67% of millennials owed credit card debt, with the average balance being $5,349.

What is the average credit score for a millennial?

According to a recent report by the Experian credit bureau, “The average credit score for millennials in the 25 largest U.S. cities is 670 or more, which is considered a good FICO® score.”

With the right credit card, millennials can earn rewards points or cash back on the things they’re paying for anyway, from groceries, commuting and rideshare services to big nights out on the town with friends and weekends away with loved ones.

When applying for a new card, make sure you’ll be able to use enough of the card’s benefits and perks to justify paying its annual fee, especially if it’s a steep one. Also, be careful with your budget and only apply for a new card if you can hit the minimum-spending requirements responsibly.

To determine which cards offer the best value for millennials, CNBC Select analyzed over 230 of the most popular credit cards available in the U.S. We compared each card on a range of features, including: rewards, welcome bonus, introductory and standard APR, balance transfer fee and foreign transaction fees, as well as factors such as required credit and customer reviews when available. We also considered additional perks, the application process and how easy it is for the consumer to redeem points.

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For rates and fees of the American Express® Gold Card, click here.  

For rates and fees of the Discover it® Cash Back, click here.

For rates and fees of the Discover it® Secured Credit Card, click here.

*Underwritten by AMEX Assurance Company. Car Rental Loss or Damage Coverage is offered through American Express Travel Related Services Company, Inc. Eligibility and Benefit level varies by Card. Terms, Conditions and Limitations Apply. Please visit americanexpress.com/ benefitsguide for more details.