Best Young Adult Credit Card 2021 (Cashback vs Miles) How To Save Money With Cards
Best Young Adult Credit Card 2021: Are you a fresh grad or young adult who has just graduated and stepped into the corporate world and if you are thinking of applying for a credit card to reward your spending.
In this article, I’ll be talking about two credit cards that are suitable for fresh grads and young adults who may just be starting their careers? Today I’m gonna talk about credit cards. So for those young adults who don’t know what the credit card is for? It’s basically a financial product that allows you to borrow money from a financial institution to pay for goods and services to merchants that accepts credit card as a form of payment. So essentially it is borrowing and will reward spending but will incur interest charges if there are late payments to the card.
Cashback Adult Credit Card
So credit cards can be broadly classified into two different categories cashback and rewards. In the rewards section we can further classify them into miles and points but today the focus is on cashback credit cards. Why cashback credit cards? So how a cashback credit card works is that if you spend a certain amount the credit card company will give you a certain percentage of your spending back. So that can in a range of 1 percent to as high as 10 percent. Imagine you’re paying something for $10. If you get a 10 percent cashback you are essentially getting back $1 sounds like a pretty good deal right, of course.
You have to read the terms and conditions of each credit card very carefully because there may be certain requirements to be met. In order to meet that amount of cashback and so why cashback credit card for young adults and fresh grads at this stage of life. This group of people does not have many commitments like having a family and having kids to feed. So naturally, their money expenses are not that high compared to families which have children.
So typically we are looking at around $300 to $500 of spending per person. If you were to use a 300 monthly spending to actually go and earn rewards. You will take a really long time to earn enough rewards to actually cash out beat miles, vouchers, or any other kind of benefit in the rewards category. So as not to waste time and effort chasing those things that you may not achieve within a short time and face the risk of expiry. I think a cashback card is more suitable for this group of people and one more thing is COV19. If you remember we are in a pandemic season right now and we probably can’t travel within the next one or even two years. So cash in hand will actually come in more handy.
I want to introduce this product from standard chartered. The standard chartered unlimited card and the standard chartered spree card. Let’s talk about the common factors first so both of these cards are cashback cards and they are entitled to a one-year fee waiver. So you don’t have any upfront charges when you apply for this card firstly.
Example of Cashback Credit Cards
Let’s talk about the sc unlimited cashback credit card so this is a simple no-frills card 1.5% on any retail spend that you spend on so for example if you spend 100 today at a fair price you’ll get 1.50 back at the end of your statement period and the cashback cat is unlimited. So that means you can even spend up to a $1000 level and you will get that 1.5 cashback but do note to spend within the eligible category. There are some exclusions as listed in the terms and conditions items like prepaid wallets paying to financial institutions advanced credit payments all these are common items that are all excluded.
SC Spree Card
Let’s look at the sc spree card this is like a level two version of the sc unlimited credit card. So you get about 3 percent cash back on your online foreign currency spend that includes your e-commerce merchants like amazon Iherb or Ali Express and also two percent on online local spend. So typically any of your online retail merchants like your food delivery or your e-commerce sites like Lazada, Shopee, Qoo10. What’s more, there’s two percent cashback? If you use it on pay wave and mobile contactless payments. So you can actually save this card into your apple pay or your google pay wallet.
So that when you tap and pay with the payware function you get that two percent cashback and then for any other kind of retail spend like your card swiping or any other eligible categories which are not listed. You’ll get one percent cashback so similarly there are some exclusions to the transaction types that are listed here and also take note that the spree card has a cashback limit of 60 dollars. So that means that if you go above the $60 of cashback your further purchases will not be entitled to any further cashback. So comparing these two cards. I would say that if you have both of these cards try to use your spree card first. Once you hit the cap you can then use your SC Unlimited because the spree card offers a much higher level of cashback.
Benefits of Cash Back Credit Card & SC Spree Card
I want to talk about the benefits of these two cards there are no minimum spending requirements for these cards to achieve that level of cashback. So you don’t have to like spend a minimum of 300 or 500 a month to get the cashback like some other cards. So very suitable for fresh grads and young adults who may not have that much high spending power. You can also apply for this card online easily with Myinfo and your digital card will be ready for use almost immediately which you can then save into your apple pay wallet or your google pay wallet to make payments for both your online and your offline retail purchases.
Now standard chartered is currently running a signup promotion up till 31st of march so you’ll get a signup bonus of $128 if you use my description link below but please do refer to the terms and conditions. It is only eligible for new cardholders. So if you have an existing standard chartered credit card you will not be entitled to this offer, and then the terms and conditions say that the offer will come in two parts. You’ll get the first 80 within the 30 days of activating the card and the remaining 48 dollars will come within 60 working days of the card activation date.
So if you don’t hold any standard chartered credit card right now I think it is a good time to apply for this card and also for people who worry about the annual fees of credit cards. So don’t worry too much about annual fees at most cancel the card after one year. If you really do not want to use it anymore one more thing is a financial knowledge channel does not go for impulsive purchases. You get all the cashback for spending so much money don’t be penny-wise and pound-foolish chasing cashback make sure that it is those stuff that you already want to buy and those are your needs rather than your wants and make sure you pay your credit card on time if not the interest charges will balloon up and eat up your money.