Just as companies are starting to grasp what millennials want, there’s a new generation in town – those born from 1995 to 2010 – called Generation Z. And that group is beginning to enter the workforce.
According to a 2015 VisionCritical study, Gen Z-ers differ from millennials in a number of ways, from their media consumption habits to the way they respond to ads to their desire to create and shape culture.
Millennials are now aging into their 30s and 40s, and many are rejecting the concept of using traditional credit. But Gen Z-ers represent the target group for credit card growth in the next decade. Keep reading for expert opinions on what cards are best for Gen Z borrowers.
Chase Sapphire Reserve
Stacy Caprio, credit card expert and personal finance blogger at Deals Scoop, feels the best credit card for the Gen Z generation is the Chase Sapphire Reserve.
“Gen Z-ers love travel and fine dining, and the Chase Sapphire Reserve card is ideal for them,” Caprio said.
A caveat: The Chase Sapphire Reserve is best for those with excellent credit and those who can afford to spend what it takes to get the sign-up bonus. So, if you’re new to credit or you don’t have the budget to cover the $4,000 minimum spend for the bonus or the card’s $450 annual fee, you may want to look elsewhere.
If you spend $4,000 in the first three months, you’ll get 50,000 points. Combined with the card’s generous $300 annual travel credit, the bonus points can make up for the annual fee in your first year And you’ll get 3x rewards on your worldwide travel and restaurant buys.
Bonus: You won’t deal with any blackout dates or travel restrictions – if there’s a seat on the flight you want, you can book it through Chase Ultimate Rewards.
The Sapphire Reserve also features 24/7 direct access to a Chase service specialist, zero foreign transaction fees, auto rental collision damage waiver and more.
Caprio also recommends Gen Z-ers consider the Uber Visa card.
“I personally love this card as it gives you an insane amount back on dining – 4 percent – as well as 3 percent back on hotels and airfare,” Caprio said.
In addition, the card offers 2 percent on online purchases and 1 percent on everything else you buy.
The Uber Visa does not come with an annual fee, and if you spend $500 in the first 90 days, you’ll earn $100.
Other cool bonuses include no foreign transaction fees and up to $600 of phone protection when you pay your phone bill with your Uber Visa card, up to a $50 credit for online subscription services when you spend $5,000 or more a per year and exclusive access to events in select stateside cities.
When you want to redeem your Uber Visa rewards on the go — for gift cards, Uber credits or cash back — it’s just a tap away in the Uber app.
Capital One Savor Cash Rewards Credit Card
Tommy Valmeyer, CEO at the digital marketing company openkit, thinks the best credit card for Gen Z-ers is the Capital One Savor Cash Rewards Credit Card.
“Generation Z will care even more about ‘experiences’ than any other generation, and the Capital One Savor Card offers 4 percent cash back on dining and entertainment,” Valmeyer noted. “And that means unlimited, 4 percent cash back on movies, sushi, concerts and sporting events,” he added.
The Savor card does come with an annual fee of $95, but it’s waived for the first year. Cardholders who spend $3,000 within the first three months will also get a sweet $300 welcome bonus.
This card’s other perks include zero foreign transaction fees, extended warranty protection on eligible items, complimentary concierge service, 24-hour travel assistance services and more.