Top Credit Cards for Recent Graduates | Millennial Money

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When you graduate, the world feels like it is at your fingertips, especially if you have a new job and have started getting regular paychecks.

Once you begin to show signs that you’re on your feet financially, like regular income or passing a new rental background check, credit card companies will notice and probably start flocking to you with alluring offers in an attempt to get your business.

It’s okay to be flattered, you earned the chance to be a card-carrying member of the economy. But you do want to proceed carefully. It’s OK — even smart — to get a credit card and use it sparingly in order to build credit. You may also find that you’re diligent enough to put all of your monthly purchases on the card and pay the balance off in-full at the end of every month.

What you do not want to do is open a credit card and treat your newfound credit line as “found money”. Speaking from experience long ago, that is the fastest way to set your financial progress back by years.

That said, when you feel confident enough to begin using a credit card responsibly, it’s totally OK to enjoy your success, and go ahead and get yourself a new credit card!

But before you sign up for any old offer that comes through your mailbox, we urge you to think about what makes the best credit card for college graduates – and more specifically, for YOU.

7 Best Credit Cards for College Graduates

• Chase Freedom Unlimited
• Chase Freedom Flex
• Citi® Double Cash Card
• Chase Sapphire Preferred Card
• Costco Anywhere Visa® Card by Citi
• Capital One® QuicksilverOne® Cash Rewards Credit Card
• Capital One® SavorOne® Cash Rewards Credit Card

Chase Freedom Unlimited

For a limited time, new cardmembers can earn 5% cash back on grocery store purchases (not including Target(R) or Walmart(R) purchases) on up to $12,000 spent in the first year.

You’ll also earn 5% cashback on travel purchased through Chase, 3% on dining and drug stores purchases, and 1.5% cashback on all other purchases.

• Annual Fee: None
• Balance Transfer Fee: $5 or 3%, whichever is greater
• Perks and Bonuses: Earn a $200 bonus after spending $500 on purchases in the first 3 months of account opening.

Chase Freedom Flex℠

Here’s an all-around good first credit card with unlimited 1% cash back. You’ll also earn 5% cashback on travel purchased through Chase, 3% on dining and drug stores purchases and 5% in select rotating categories each quarter.

For a limited time, new cardmembers can earn 5% cash back on grocery store purchases (not including Target(R) or Walmart(R) purchases) on up to $12,000 spent in the first year.

This would make a great credit card for a new college graduate, and it would be especially good for you if you had a big move coming up for a small amount of debt left over from college that you want to pay off interest-free.

• Annual Fee: None
• Balance Transfer Fee: $5 or 3%, whichever is greater
• Perks and Bonuses: $200 Bonus after spending $500 on purchases in your first 3 months from account opening. 5% cashback on up to $1,500 in combined purchases in bonus categories each quarter (must activate rewards every quarter). Unlimited 1% cash back on all other purchases.

Citi® Double Cash Card

Being a recent graduate, some extra cash back on your spending will likely come in handy.

With the Citi® Double Cash Card you’ll earn 2% cash back on every purchase – unlimited 1% cash back when you buy + an additional 1% as you pay for those purchases.

There’s also a balance transfer offer currently: 0% intro APR on balance transfers for 18 months, starting from the date of the first transfer; afterwards, the standard variable APR for purchases of 13.99% to 23.99% applies. Balance Transfers must be completed within 4 months of opening an account.

• Annual Fee: $0
• Balance Transfer Fee: $5 or 3%, whichever is greater
• Perks and Bonuses: Unlimited 1% cashback on all purchases + an additional 1% once you pay your bill, 0% intro APR on balance transfers completed in first 4 months.

Chase Sapphire Preferred Card

If you know you’ll be traveling for your new job, consider getting a travel rewards credit card that gives you some trip cancellation protections and also puts money back in your pocket when you go out to eat.

This particular offer gives you the opportunity to earn up to $750 in travel rewards in the first 3 months. If you sign up for this card, you better ask for new luggage as a graduation gift.

This card also comes jam-packed with travel protections such as on-call emergency assistance services, $10,000 trip cancellation insurance in the event of severe weather or sickness, baggage delay insurance to cover the essentials when your luggage is lost, and primary car rental insurance both in the U.S. and abroad.

Along with travel protection, you also get some perks while shopping! With this card, your major retail purchases are covered for extra theft and damage protection up to $10,000 per incident and $50,000 per year.

• Current Promotional Offer: Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months.
• Annual Fee: $95
• Perks and Bonuses: Earn 2X points on travel and dining at restaurants.

Costco Anywhere Visa® Card by Citi

Costco is one of the most popular wholesale clubs in the U.S. It’s a store than many Americans frequent weekly, which is what makes The Costco Anywhere Visa® Card by Citi so valuable.

It’s chocked full of cashback, but without the annual fee that most cards carry for these kind of perks. 4% on eligible gas purchases, including gas at Costco for the first $7,000 each year, 3% on restaurants and eligible travel purchase, 2% when you shop at Costco and Costco.com and 1% on everything else.

The only catch is that you must be a Costco member; however, these start at $69 and is one of the best ways to save money on everyday items.

Not a member? Use this link and receive up to $20 in free Costco gift cards when you sign up!

• Annual Fee: $0 w/ a paid Costco membership
• Balance Transfer Fee: $5 or 3%, whichever is greater
• Perks and Bonuses: 4% cashback on gas, 3% on food and travel, 2% at Costco and 1% everything else

Capital One® QuicksilverOne® Cash Rewards Credit Card

If you’re just starting out in the credit card game, this credit card is great for building credit.

You might begin with a low credit line, but you’ll get access to a higher credit line after making your first 5 monthly payments on time.

• Annual Fee: $39
• Cash Back Rewards: Unlimited 1.5% Cash Back on every single purchase.
• Other Protections: $0 Fraud Liability Coverage if your card is ever lost or stolen. With this card, you will never be responsible for fraudulent purchases.

Capital One® SavorOne® Cash Rewards Credit Card

Here’s another great 0% APR card for graduates with expenses to take care of before their money starts rolling in.

Earn a $200 welcome bonus to make that cross-country move a little easier, and enjoy generous cashback on regular spending once you get on your feet.

• Current Promotional Offer: 0% Introductory APR on Purchases and Balance Transfers in the first 15 months, then a variable APR of 15.49% – 25.49%. $200 cash bonus on your first $500 spent in the first 3 months.
• Annual Fee: None
• Balance Transfer Fee: 3%
• Other perks: No foreign transaction fees. Unlimited 3% cashback on dining and entertainment. 2% cashback at grocery stores. 1% cashback on all other purchases.

What Kind of Credit Card do Recent College Graduates Need?

The first question to think about when asking what is the best credit card to get after graduating college is this: What will my life be like?

There are a number of questions to help you imagine your life and consider what you will need out of your new credit card, for example:

Will you have to travel for your new job and need a travel rewards credit card?

Will you be moving to a new city and benefit from a 0% APR Introductory Offer to give you a way to cover upfront costs of relocation and pay it back over 12-15 months before interest starts to accrue?

Maybe you have a small amount of debt left over from college that you’d like to put on a card with a 0% APR offer for balance transfers.

Or – perhaps you like to keep things simple and want a no-frills cash back rewards card that puts 1-1.5% cashback in your pocket for every dollar you spend.

No matter what, there is an option for you.

Additional Disclosures: Millennial Money has partnered with CardRatings and creditcards.com for our coverage of credit card products. Millennial Money, CardRatings and creditcards.com may receive a commission from card issuers. This site does not include all financial companies or financial offers. Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed or approved by any of these entities.