Understanding What is the Best AARP Credit Card for Seniors?

According to a study on senior spending, many older Americans prioritize budgeting for everyday expenses like medical care and gas. Finding the right financial tool, such as understanding what is the best AARP credit card for seniors, can significantly boost cash back on these vital purchases.

Quick Summary

The best AARP credit card for seniors depends on their spending habits; the Essential Rewards Mastercard is ideal for those prioritizing gas, drugstores, and medical expenses, while the Travel Rewards Mastercard is better for individuals who spend more on airfare, hotels, and restaurants. Both offer a $0 annual fee and a cash back bonus.

Key Points

• Essential vs. Travel Rewards: The AARP Essential Rewards Mastercard is best for everyday spending on gas, medical, and drugstores, while the Travel Rewards Mastercard is better for travel and dining.

• No Annual Fee: Both AARP credit cards from Barclays feature a $0 annual fee, making them budget-friendly options.

• Spending Habits Matter: Your choice should be based on a careful analysis of your typical monthly expenses to maximize cash back.

• Welcome Bonus: Both cards offer a $100 bonus for new cardholders who meet a spending threshold, providing an initial reward boost.

• No Foreign Transaction Fee: Be aware that both AARP cards have a 3% foreign transaction fee, which is a key consideration for international travelers.

• Credit Score Access: A useful perk for both cards is complimentary online access to your FICO® Credit Score.

Your Guide to AARP Credit Cards for Seniors

When evaluating a credit card, especially in retirement, the primary goal is often to find one that aligns with your lifestyle and spending patterns. AARP offers several co-branded cards through Barclays, each designed to maximize rewards in specific areas. The choice between them comes down to whether your budget favors everyday purchases or travel.

The AARP Essential Rewards Mastercard from Barclays

Ideal for seniors who prioritize spending on gas, drugstores, and eligible medical expenses, this card offers enhanced cash back in these categories. It's a solid choice for those focused on daily essentials.

Key features and rewards

• Bonus Cash Back: Earn elevated cash back at gas stations and drugstores. Get increased rewards on eligible medical expenses.
• Standard Cash Back: Receive 1% cash back on all other purchases.
• Welcome Bonus: Earn a cash back bonus after meeting a spending requirement in the initial months.
• No Annual Fee: The card has a $0 annual fee.

The AARP Travel Rewards Mastercard from Barclays

Designed for seniors who travel frequently, this card provides higher rewards on travel-related spending and dining. It caters to those whose budget includes regular expenses on airfare, hotels, or restaurants.

Key features and rewards

• Bonus Cash Back: Earn higher cash back on airfare, hotel stays, and car rentals. Get increased rewards at restaurants.
• Standard Cash Back: Receive 1% cash back on all other purchases.
• Welcome Bonus: Offers a cash back bonus after meeting a spending requirement in the initial months.
• No Annual Fee: This card also has a $0 annual fee.

How to Choose: Which AARP Card is Right for You?

To determine the best AARP credit card for your needs, consider the following:

• Analyze your spending: Review your expenditures to see whether everyday costs or travel expenses make up a larger portion of your budget.
• Consider travel frequency: If you travel often, the Travel Rewards card's benefits may outweigh those of the Essential Rewards card.
• Weigh the foreign transaction fee: Both cards have a foreign transaction fee, which is important for international travelers.

Comparing the AARP Credit Cards

Feature	AARP Essential Rewards Mastercard	AARP Travel Rewards Mastercard
Annual Fee	$0	$0
Best For	Everyday spending on gas, drugs, and medical expenses	Travel and dining
Gas & Drugstore Rewards	High % Cash Back	Standard % Cash Back
Medical Expenses Rewards	High % Cash Back	Standard % Cash Back
Travel Rewards (Airfare, Hotel, Car Rental)	Standard % Cash Back	High % Cash Back
Restaurant Rewards	Standard % Cash Back	High % Cash Back
All Other Purchases	1% Cash Back	1% Cash Back
Introductory Bonus	$100 cash back after spending $500 in 90 days	$100 cash back after spending $500 in 90 days

A closer look at important features

Beyond the reward structure, several other factors are worth considering:

• APR: Both cards have a variable APR, making it advisable to pay off balances monthly. A balance transfer option with a 0% introductory APR is available for a limited time, though a fee applies.
• No AARP membership needed: Membership is not required to apply for these cards, although rewards can be used for AARP membership.
• FICO® Score Access: Cardholders receive complimentary online access to their FICO® Credit Score.

How AARP cards stack up against other options

While AARP cards are tailored for seniors, comparing them to other market options like flat-rate cash back cards is wise to ensure you find the best fit for your specific spending habits.

Conclusion: Making Your Decision

Choosing the best AARP credit card for seniors is a personal decision based on individual financial needs and habits. The Essential Rewards card generally offers more practical value for everyday expenses, while the Travel Rewards card is better suited for frequent travelers. Evaluate your spending against the specific rewards to make an informed decision. You can find more details and apply on the official AARP credit cards website for additional information.

Visit AARP Credit Cards for more information

Frequently Asked Questions

Do you need to be an AARP member to get an AARP credit card?

No, you do not need to be an AARP member to apply for the AARP credit cards from Barclays. However, you can choose to redeem your earned cash back rewards toward an AARP membership.

Is the AARP Essential Rewards Mastercard good for groceries?

The AARP Essential Rewards Mastercard is not specifically focused on groceries and earns 1% cash back on most grocery purchases, excluding gas and drugstores. Other cards might offer higher rewards for grocery spending.

What is the cash back bonus offer for the AARP credit cards?

Both the AARP Essential Rewards and Travel Rewards cards offer a $100 cash back bonus to new cardholders after spending $500 on purchases within the first 90 days of account opening.

Can I transfer a balance to an AARP credit card?

Yes, both AARP credit cards offer a 0% introductory APR on balance transfers for 15 months. However, a balance transfer fee applies, so it's important to calculate if the savings on interest outweigh the fee.

How do I redeem my AARP credit card rewards?

Rewards can be redeemed for cash back, statement credits, gift cards, merchandise, or applied toward an AARP membership. Redemption options are managed through the Barclays website.

What credit score is needed for an AARP credit card?

While approval depends on various factors, a good to excellent credit score (typically 700+) is generally required for the best chance of approval for an AARP credit card.

Are AARP credit cards good for international travel?

Neither AARP credit card is ideal for international travel, as both charge a 3% foreign transaction fee on purchases made outside the United States.

Are there other non-AARP credit card options for seniors?

Yes, many seniors find value in other cards, such as flat-rate cash back cards like the Citi Double Cash® Card, which may better fit their overall spending needs compared to the specific bonus categories of the AARP cards.