Credit card bonuses and reward rates have the highest value they had in a long time, making many creditworthy consumers interested in taking advantage of what is offered. Although most people can take advantage of this, those that seem to benefit the most are millennials. This is because the rewards are easily making travel more affordable while expenses are trimmed.
Millennials are smart shoppers as they have access to so much information. You will often see them knowing advanced information, like laws for title-secured loans and similar. Because of the knowledge they have, it is easy to manage spending and then pay down balances in a way that avoids interest. As this happens, rewards become highly profitable and can easily be used for travelling.
Getting Financial Freedom
When people start doing their own financial moves, everything revolves around juggling resources. The paycheck often ends up going towards rent, emergency funds and student loans. Millennials often find themselves in the situation in which not much cash remains. Using credit card rewards becomes an interesting solution for those that are interested in travelling since various bonuses are tailored for travel. Financial breathing is basically offered by the credit card and when paying back properly, bonuses remain and can be used in the future.
As an example, the signup bonus for most cards that have zero annual fees is around $175. When the reward is a cash back, this can cover groceries for a week, some furniture or some date nights. Ongoing rewards add up to this, usually offering around 1.5% back on all the purchases made.
While people of other ages are more interested in the fact they have debt and the fact that they need to make payments, millennials focus on the extra money they receive and make the right financial moves in order to actually receive the cash backs.
Travel is very important for many millennials. The rewards that appear on the credit cards will trim expenses. As an example, the credit points you get on cards can be used in order to cover accommodation at a hotel as you visit another country. This automatically makes the entire trip more affordable. Miles and points do come in handy, even when the trip is not long. There are some travel rewards that even cover Uber rides, bus fares, train fares and campground fees.
One last thing that can be mentioned is that as a millennial, time is on your side. Credit card rewards can add up and this is a huge advantage as you do not hurry to get the money. As you are young, obligations are low. Taking a trip to another country or just going on a weekend getaway is much simpler due to the lack of obligations.
Even if the millennial has a schedule that is less flexible, extra rewards can be scored. The best example of this is using online shopping as rewards can be obtained as you use the credit card. Maximizing rotating rewards categories, as an example, is something that many millennials do right now.