Thread: Best cash back program for a 21 year old?

Hi there,

I'm turning 21 next month and was looking to open up a credit card for the first time.

I recently checked my credit score, thinking it would nonexistent as I don't own any credit cards. In reality it's over 800. I believe this is because my parents gave me a MasterCard which is linked to their account when I entered college 3 years ago so I could use that to pay off any misc fees (and I suspect so they could track what I was spending money on). So my credit score is basically their credit score.

I still go to college full time and I work part time. I have a Wells Fargo debit card and have had that since high school. I like having them as my bank, haven't had any problems with them and their ATMs are abundant where I live so that makes it convenient for cash withdrawals. They have options for a student credit card, but the rewards for it doesn't seem all that appealing.

Was just curious what opinions were on a good first credit card. Been looking mostly at the American Express Blue Cash Everyday. As most of my spending is at department stores, grocery stores, or gas, the AmEx definitely seems the most appealing with its higher rewards back % and the fact that it doesn't rotate every quarter.

Basically I would like a card with a cash back rewards program (the point system seems much more of a hassle), no annual fees, and a good track record of excellent customer service. APR isn't too much of a factor because know I'll be able to pay off my balance month to month and I never spend more than I what I can afford. I realize AmEx isn't accepted everywhere, but for the places that don't accept, I have my Visa debit card that would suffice.

Anyone have any thoughts or words of advice?

Hey,

I recently got amex blue cash preferred as my primary card though I am considering changing this to the standard next renewal as my use of gas and groceries has decreased lately. As you know amex isn't accepted everywhere but far more often than not, it is - even over seas. For my secondary card I got the Chase Freedom which, while their rotating crap is annoying, is very easy to sign up for (though still very annoying).

The only other card I'd recommend you look into is Fidelity Amex as Jeffsdad talks about in some of his posts.

Likewise, as you said, cash back is by far better than a points reward system. Most people of youth now days know how to shop online and recently looking at the rewards I could use my from my Chase card to get some prize - I could instead get the cash, purchase the prize and have an extra 20% cash sitting around after....

Lastly, the only thing to consider is how often you travel - it may be worth getting a card with some travel rewards such as bonus flyer miles and no foreign transaction fees if you travel much though if you're looking for cash back this doesn't sound very likely.

PS - amex website is far and away better than chase's credit card site. Their phone support is better too (heaps better)

Thanks for your input. I decided to go ahead and just apply for the AmEx Blue Cash Everyday card.

I've been needing a new laptop for the past few months and with the $100 back for spending $1000 in the first 3 months, I figured it's worth it just for that. We'll see if they actually approve me for the card though. Even though I have a high credit score, I only work part time so my annual income is low, but I do have a bit invested in stocks.

I wonder how they decide whether to approve or not...

Dunno ~ Your credit score is higher than mine when I applied - it was like 77x but I have a moderate income and slightly longer credit history

I called in and found out within about 10 mins if I was approved or declined though I had also received mail offers from Amex for both gold/blue already

Oddly I was rejected for the better cash back card from Capital One (wanted the no foreign fees and a master card - instead I got the MC Chase freedom as my secondary) so I'd recommend avoiding them until you've got much more history behind you.

American express blue cash isn't a good idea for applying for a first credit card. you say you work part time. do you work for a store like Gap or JCPenney's, in an office or restaurant? If you work for 1 of the stores I would recommed getting 1 of their cards as a first credit card. if you are in a grocery store or restaurant I would recommend orchard visa it helps people like you establish credit, maybe lower credit limits but you have to start off somewhere.

also your local bank and I don't mean chase, bank of america, citi or capitol1. I mean a Td bank, citizens, providence. since you are in LA if you have a bank that's only known in California that would be a good place to start out for your first credit card.