Credit Cards For Young Adults
by Mr Credit CardWe all know that credit card issuers segment the market and create products for different folks. For example, there are frequent flier credit cards for the jet setter. There are credit cards for college students, and even those with bad credit. But there aren’t many cards that are specifically targeted towards “young adults”. Well recently, that has changed for a couple of issuers who are looking to target young working adults. I think part of the reason for these two companies to target this segment is because most young folks are not frequent travelers and hence the traditional reward cards do not make sense. Unlike the frequent flier, a typical person is more likely to use their cards at
Citicards have come up with a credit card that targets young adults – called the Citi Forward Card. Unlike their regular rewards card, this card pays you extra points when you use the cards on things like restaurants and entertainment. This card will appeal to younger folks who are looking for a reward card but do not travel a lot.
American Express has had long success with their charge cards. And because they have such a stronghold in the corporate card segment, many executives and folks who work for fortune 500 companies end up having Amex charge cards as their personal card as well. But with the proliferation of credit cards with no annual fee (including some of their own cards), American Express is trying to get target charge cards to young adults. And hence, they came up with a charge card called the Zync.
The Zync from American Express is a charge card with a lower annual fee than their other regular charge cards. Card members can earn more points on certain categories of spending and they are given a choice as to which category they would like. It is not your typical “travel” category but more like restaurants, cell phone service (stuff that “young adults” are supposed to spend their money on). But if you do travel, they do have a package for earning extra points on airline ticket purchases. The card is meant to be an introduction to the world of charge cards where you have to pay your bills in full every month.
In fact, I would say that these two cards are actually pretty decent reward cards if you want to earn rewards but do not travel. And that is because you can earn more than the standard one point for every dollar you spend on other things like dining out, cell phone service, movies and entertainment etc that you are more likely to spend on.
April 19th, 2010 at 04:40
I’m not sure if there’s really an explicit credit card market for “young adults.” When I was younger, I applied for and got regular credit cards that any older adult would get, like a Starwood card.
July 12th, 2010 at 21:20
I have Zync from American Express, I love it. I recommend it for anyone who doesn’t trust themselves with a credit card, but wants to build credit. I have been gawked by friends, due to there being better card offers out there. However I watched my parents battle that slippery slope for most of their lives, and I know it’s better to avoid that stress all together. I have a Visa for emergencies and it stays with my passport, not my wallet! Personally I think more students should have charge cards with limits, it allows students to have the freedom of credit, however it also requires them to pay their balance if they want to continue using their cards. With the average students credit card balance just under $4,000!, at a interest rate anywhere from 16-22% doesn’t make for a pretty picture anyway you cut it. In my opinion at $25 a year and the service & benefits of an American Express, can it be beat?
August 25th, 2010 at 21:34
I don’t think cards for “young adults” really exist out there. The problem with many “young adults” is that they get a credit card and go wild. Hey, it’s a piece of plastic, so why not just hand it over for that $100 dress you obviously can’t afford. My parents brought me up to be very good with my money. They understand that you need to have enough money in your bank account to pay off your bills, because if you don’t, you’ll get into debt and then spend the rest of your life trying to pay off that debt, while in the meantime, probably going more into debt. I’ve applied for many and have never been denied, a credit card. It goes with having an excellent credit score above 760. I have a Zync card. It was my first American Express card. I then applied for a Preferred Rewards Gold card and was approved. I have a Chase Sapphire card as well.