what is a good personal statement

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How to Write a Strong Personal Statement

• Ruth Gotian
• Ushma S. Neill

A few adjustments can get your application noticed.

Whether applying for a summer internship, a professional development opportunity, such as a Fulbright, an executive MBA program, or a senior leadership development course, a personal statement threads the ideas of your CV, and is longer and has a different tone and purpose than a traditional cover letter. A few adjustments to your personal statement can get your application noticed by the reviewer.

• Make sure you’re writing what they want to hear. Most organizations that offer a fellowship or internship are using the experience as a pipeline: It’s smart to spend 10 weeks and $15,000 on someone before committing five years and $300,000. Rarely are the organizations being charitable or altruistic, so align your stated goals with theirs
• Know when to bury the lead, and when to get to the point. It’s hard to paint a picture and explain your motivations in 200 words, but if you have two pages, give the reader a story arc or ease into your point by setting the scene.
• Recognize that the reviewer will be reading your statement subjectively, meaning you’re being assessed on unknowable criteria. Most people on evaluation committees are reading for whether or not you’re interesting. Stated differently, do they want to go out to dinner with you to hear more? Write it so that the person reading it wants to hear more.
• Address the elephant in the room (if there is one). Maybe your grades weren’t great in core courses, or perhaps you’ve never worked in the field you’re applying to. Make sure to address the deficiency rather than hoping the reader ignores it because they won’t. A few sentences suffice. Deficiencies do not need to be the cornerstone of the application.

At multiple points in your life, you will need to take action to transition from where you are to where you want to be. This process is layered and time-consuming, and getting yourself to stand out among the masses is an arduous but not impossible task. Having a polished resume that explains what you’ve done is the common first step. But, when an application asks for it, a personal statement can add color and depth to your list of accomplishments. It moves you from a one-dimensional indistinguishable candidate to someone with drive, interest, and nuance.

• Ruth Gotian is the chief learning officer and assistant professor of education in anesthesiology at Weill Cornell Medicine in New York City and the author of  The Success Factor . She was named the world’s #1 emerging management thinker by Thinkers50. You can access her free list of conversation starters . RuthGotian
• Ushma S. Neill is the Vice President, Scientific Education & Training at Memorial Sloan Kettering Cancer Center in New York City. She runs several summer internships and is involved with the NYC Marshall Scholar Selection Committee. ushmaneill

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How to Write a Personal Statement (with Tips and Examples)

Hannah Yang

Table of Contents

What is a personal statement, 6 tips on how to write a personal statement, personal statement examples (for college and university), faqs about writing personal statements, conclusion on how to write a personal statement.

How do you tell someone who you are in just a few hundred words?

It’s certainly no easy task, but it’s one almost every college applicant must do. The personal statement is a crucial part of any college or university application.

So, how do you write a compelling personal statement?

In this article, we’ll give you all the tools, tips, and examples you need to write an effective personal statement.

A personal statement is a short essay that reveals something important about who you are. It can talk about your background, your interests, your values, your goals in life, or all of the above.

Personal statements are required by many college admission offices and scholarship selection committees. They’re a key part of your application, alongside your academic transcript, standardized test scores, and extracurricular activities.

The reason application committees ask you to write a personal statement is so they can get to know who you are. 

Some personal statements have specific prompts, such as “Discuss a period of personal growth in your life” or “Tell us about a challenge or failure you’ve faced.” Others are more open-ended with prompts that essentially boil down to “Tell us about yourself.”

No matter what the prompt is, your goal is the same: to make yourself stand out to the selection committee as a strong candidate for their program.

Here are some things a personal statement can be:

It can be funny. If you have a great sense of humor, your personal statement is a great place to let that shine.  

It can be vulnerable. Don’t be afraid to open up about hardships in your life or failures you’ve experienced. Showing vulnerability can make you sound more like a real person rather than just a collection of application materials.  

It can be creative. Candidates have got into top schools with personal statements that take the form of “a day in the life” descriptions, third-person short stories, and even cooking recipes.

Now we’ve talked about what a personal statement is, let’s quickly look at what a personal statement isn’t:

It isn’t a formal academic paper. You should write the personal statement in your natural voice, using first-person pronouns like “I” and “me,” not in the formal, objective language you would use to write an academic paper.

It isn’t a five-paragraph essay. You should use as many paragraphs as you need to tell your story instead of sticking to the essay structure you learned in school.

It isn’t a resumé. You should try to describe yourself by telling a clear and cohesive story rather than providing a jumbled list of all of your accomplishments and ambitions.

Here are our top six tips for writing a strong personal statement.

Tip 1: Do Some Serious Self-Reflection

The hardest part of writing a personal statement isn’t the actual process of writing it.

Before you start typing, you have to figure out what to write about. And that means taking some time to reflect on who you are and what’s important in your life.

Here are some useful questions you can use to start your self-reflection. You can either answer these on your own by writing down your answers, or you can ask a trusted friend to listen as you talk about them together.

What were the key moments that shaped your life? (e.g. an important friendship, a travel experience, an illness or injury)

What are you proud of? (e.g. you’re a good listener, you always keep your promises, you’re a talented musician)

How do you choose to spend your time? (e.g. reading, practicing soccer, spending time with your friends)

What inspires you? (e.g. your grandmother, a celebrity, your favorite song)

Doing this self-reflection is crucial for figuring out the perfect topics and anecdotes you can use to describe who you are.

Tip 2: Try to Avoid Cliché Topics

College application committees read thousands of personal statements a year. That means there are some personal statement topics they see over and over again.

Here are a few examples of common personal statement topics that have become cliché:

Winning a tournament or sports game

Volunteering in a foreign country

Moving to a new home

Becoming an older sibling

Being an immigrant or having immigrant parents

If you want to make a strong impression in the application process, you need to make your personal statement stand out from the crowd.

But if your chosen personal statement topic falls into one of these categories, that doesn’t necessarily mean you shouldn’t use it. Just make sure to put a unique spin on it so it still delivers something the committee hasn’t seen before.

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Tip 3: Show, Don’t Tell

One common mistake you might make in your personal statement is to simply tell the reader what you want them to know about you, such as by stating “I have a fear of public speaking” or “I love to cook.”

Instead of simply stating these facts, you should show the committee what you’re talking about through a story or scene, which will make your essay much more immersive and memorable.

For example, let’s say you want the committee to know you overcame your fear of public speaking. Instead of writing “I overcame my fear of public speaking,” show them what it was like to be onstage in front of a microphone. Did your palms get clammy? Did you feel light-headed? Did you forget your words?

Or let’s say you want the committee to know you love to cook. Instead of writing “I love to cook,” show them why you love to cook. What’s your favorite dish to cook? What does the air smell like when you’re cooking it? What kitchen appliances do you use to make it?

Tip 4: Connect the Story to Why You’re Applying

Don’t forget that the purpose of your personal statement isn’t simply to tell the admissions committee who you are. That’s an important part of it, of course, but your ultimate goal is to convince them to choose you as a candidate.

That means it’s important to tie your personal story to your reasons for applying to this specific school or scholarship. Finish your essay with a strong thesis.

For example, if your story is about overcoming your fear of public speaking, you might connect that story to your ambition of becoming a politician. You can then tie that to your application by saying, “I want to apply to this school because of its fantastic politics program, which will give me a perfect opportunity to use my voice.”

Tip 5: Write in Your Own Voice

The personal statement isn’t supposed to be written in a formal tone. That’s why they’re called “personal” statements because you have to shape it to fit your own voice and style.

Don’t use complicated or overwrought language. You don’t need to fill your essay with semicolons and big words, unless that’s how you sound in real life.

One way to write in your own voice is by speaking your personal statement out loud. If it doesn’t feel natural, it may need changing. 

Tip 6: Edit, Edit, Edit!

It’s important to revise your personal statement multiple times in order to make sure it’s as close to perfect as possible.

A single typo won’t kill your application, but if your personal statement contains multiple spelling errors or egregious grammar mistakes, you won’t be putting your best foot forward.

ProWritingAid can help you make sure your personal statement is as clean as possible. In addition to catching your grammar errors, typos, and punctuation mistakes, it will also help you improve weaknesses in your writing, such as passive voice, unnecessary repetition, and more.

Let’s look at some of the best personal statements that have worked for successful candidates in the real world. 

Harvard Personal Statement Example

Love. For a word describing such a powerful emotion, it is always in the air. The word “love” has become so pervasive in everyday conversation that it hardly retains its roots in blazing passion and deep adoration. In fact, the word is thrown about so much that it becomes difficult to believe society isn’t just one huge, smitten party, with everyone holding hands and singing “Kumbaya.” In films, it’s the teenage boy’s grudging response to a doting mother. At school, it’s a habitual farewell between friends. But in my Chinese home, it’s never uttered. Watching my grandmother lie unconscious on the hospital bed, waiting for her body to shut down, was excruciatingly painful. Her final quavering breaths formed a discordant rhythm with the steady beep of hospital equipment and the unsympathetic tapping hands of the clock. That evening, I whispered—into unhearing ears—the first, and only, “I love you” I ever said to her, my rankling guilt haunting me relentlessly for weeks after her passing. My warm confession seemed anticlimactic, met with only the coldness of my surroundings—the blank room, impassive doctors, and empty silence. I struggled to understand why the “love” that so easily rolled off my tongue when bantering with friends dissipated from my vocabulary when I spoke to my family. Do Chinese people simply love less than Americans do?

This is an excerpt from a personal statement that got the applicant admitted to Harvard University. The applicant discusses her background as a Chinese-American by musing on the word “love” and what that means within her family.

The writer uses vulnerable details about her relationship with her grandmother to give the reader an understanding of where she comes from and how her family has shaped her.  

You can read the full personal statement on the Harvard Crimson website.

Tufts Personal Statement Example

My first dream job was to be a pickle truck driver. I saw it in my favorite book, Richard Scarry’s “Cars and Trucks and Things That Go,” and for some reason, I was absolutely obsessed with the idea of driving a giant pickle. Much to the discontent of my younger sister, I insisted that my parents read us that book as many nights as possible so we could find goldbug, a small little golden bug, on every page. I would imagine the wonderful life I would have: being a pig driving a giant pickle truck across the country, chasing and finding goldbug. I then moved on to wanting to be a Lego Master. Then an architect. Then a surgeon. Then I discovered a real goldbug: gold nanoparticles that can reprogram macrophages to assist in killing tumors, produce clear images of them without sacrificing the subject, and heat them to obliteration. Suddenly the destination of my pickle was clear. I quickly became enveloped by the world of nanomedicine; I scoured articles about liposomes, polymeric micelles, dendrimers, targeting ligands, and self-assembling nanoparticles, all conquering cancer in some exotic way. Completely absorbed, I set out to find a mentor to dive even deeper into these topics. After several rejections, I was immensely grateful to receive an invitation to work alongside Dr. Sangeeta Ray at Johns Hopkins.

This is the beginning of a personal statement by Renner Kwittken, who was admitted into Tufts University as a pre-medical student.

Renner uses a humorous anecdote about being a pickle truck driver to describe his love for nanomedicine and how he got involved in his field. You can feel his passion for medicine throughout his personal statement.

You can find Renner’s full essay on the Tufts Admissions page.

Law School Personal Statement Essay Example

For most people, the slap on the face that turns their life around is figurative. Mine was literal. Actually, it was a punch delivered by a drill sergeant at Fort Dix, New Jersey, while I was in basic training. That day’s activity, just a few weeks into the program, included instruction in “low-crawling,” a sensible method of moving from one place to another on a battlefield. I felt rather clever for having discovered that, by looking right rather than down, I eliminated my helmet’s unfortunate tendency to dig into the ground and slow my progress. I could thus advance more easily, but I also exposed my unprotected face to hostile fire. Drill sergeants are typically very good at detecting this type of laziness, and mine was an excellent drill sergeant. So, after his repeated suggestions that I correct my performance went unheeded, he drove home his point with a fist to my face. We were both stunned. This was, after all, the New Army, and striking a trainee was a career-ending move for a drill sergeant, as we were both aware. I could have reported him; arguably, I should have. I didn’t. It didn’t seem right for this good sergeant, who had not slept for almost four days, to lose his career for losing his temper with my laziness. Choosing not to report him was the first decision I remember making that made me proud.

These are the first three paragraphs of an anonymous personal statement by a Wheaton College graduate, who used this personal statement to get into a top-25 law school.

This statement describes a time the applicant faced a challenging decision while in the army. He ended up making a decision he was proud of, and as a result, the personal statement gives us a sense of his character.

You can find the full essay on the Wheaton Academics website.

Here are some common questions about how to write a personal statement.

How Long Should a Personal Statement Be?

The length of your personal statement depends on the specific program you’re applying to. The application guidelines usually specify a maximum word count or an ideal word count.  

Most personal statements are between 500–800 words. That’s a good general range to aim for if you don’t have more specific guidelines.  

Should Personal Statements Be Different for Scholarships?

Many scholarship applications will ask for personal statements with similar prompts to those of college applications.

However, the purpose of a personal statement you’d write for a scholarship application is different from the purpose of one you’d write for a college application.

For a scholarship application, your goal is to showcase why you deserve the scholarship. To do that, you need to understand the mission of the organization offering that scholarship.

For example, some scholarships are meant to help first-generation college students get their degree, while others are meant to help women break into STEM.

Consider the following questions:

Why is this organization offering scholarships?

What would their ideal scholarship candidate look like?

How do your experiences and goals overlap with those of their ideal scholarship candidate?

You can use the same personal anecdotes you’d use for any other personal statement, but you’ll have a better chance of winning the scholarship if you tailor your essay to match their specific mission.

How to Start a Personal Statement

You should start your personal statement with a “hook” that pulls the reader in. The sooner you catch the reader’s attention, the more likely they’ll want to read the entire essay.

Here are some examples of hooks you can use:

A story (e.g. When the spotlight hit my face, I tried to remind myself to breathe. )

A setting description (e.g. My bedroom floor is covered with dirty laundry, candy wrappers, and crumpled sheet music. )

A funny anecdote (e.g. When I was a little kid, my friends nicknamed me Mowgli because of my haircut. )

A surprising fact (e.g. I've lived in 37 countries .)

There you have it—our complete guide to writing a personal statement that will make you stand out to the application committee.

Here’s a quick recap: 

A personal statement is a short essay that shows an application committee who you are

Start with a strong hook that pulls the reader in

Tell a story to engage the reader 

Write in your own voice, not in a formal tone

Good luck, and happy writing!

Hannah is a speculative fiction writer who loves all things strange and surreal. She holds a BA from Yale University and lives in Colorado. When she’s not busy writing, you can find her painting watercolors, playing her ukulele, or hiking in the Rockies. Follow her work on hannahyang.com or on Twitter at @hannahxyang.

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What to include in a Personal Statement

Personal Statement Tips

Nail your uni application with our personal statement examples.

Discover personal statements by subject, from A to Z. Find inspiration for your own application with these successful personal statement examples from real students.

Personal Statement Help

What is a personal statement.

A personal statement is an essay written by a student applying to either a college or university. A personal statement is written and then uploaded to UCAS and is then attached to any university applications that the student may then make.

If you need more information check out our personal statement advice articles .

How to write a personal statement

There isn't a clearly defined personal statement template for you to use as each person's statement is different.

When it comes to writing a personal statement for universities, your personal statement should touch on your passions, your interest in the course, why you're applying for the course and why you would be an asset to the university you're applying to.

Talk about the clubs and societies that you belong to, any work experience you may have and any awards you might have won.

If you're still looking for information check out our article on how to write a personal statement .

How to start a personal statement

When it comes to starting your personal statement, the best thing to do is to be succinct and to have enough tantalising information to keep the reader informed and eager for more.

Your introduction should touch on your personal qualities and why you are applying for the subject you're applying for. Keeping things short and sweet means that it also allows you to break your personal statement up, which makes it easier for the reader.

We have plenty of advice for students that are wondering about what to include in a personal statement .

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Writing the Personal Statement

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This handout provides information about writing personal statements for academic and other positions.

The personal statement, your opportunity to sell yourself in the application process, generally falls into one of two categories:

1. The general, comprehensive personal statement:

This allows you maximum freedom in terms of what you write and is the type of statement often prepared for standard medical or law school application forms.

2. The response to very specific questions:

Often, business and graduate school applications ask specific questions, and your statement should respond specifically to the question being asked. Some business school applications favor multiple essays, typically asking for responses to three or more questions.

Questions to ask yourself before you write:

• What's special, unique, distinctive, and/or impressive about you or your life story?
• What details of your life (personal or family problems, history, people or events that have shaped you or influenced your goals) might help the committee better understand you or help set you apart from other applicants?
• When did you become interested in this field and what have you learned about it (and about yourself) that has further stimulated your interest and reinforced your conviction that you are well suited to this field? What insights have you gained?
• How have you learned about this field—through classes, readings, seminars, work or other experiences, or conversations with people already in the field?
• If you have worked a lot during your college years, what have you learned (leadership or managerial skills, for example), and how has that work contributed to your growth?
• What are your career goals?
• Are there any gaps or discrepancies in your academic record that you should explain (great grades but mediocre LSAT or GRE scores, for example, or a distinct upward pattern to your GPA if it was only average in the beginning)?
• Have you had to overcome any unusual obstacles or hardships (for example, economic, familial, or physical) in your life?
• What personal characteristics (for example, integrity, compassion, and/or persistence) do you possess that would improve your prospects for success in the field or profession? Is there a way to demonstrate or document that you have these characteristics?
• What skills (for example, leadership, communicative, analytical) do you possess?
• Why might you be a stronger candidate for graduate school—and more successful and effective in the profession or field than other applicants?
• What are the most compelling reasons you can give for the admissions committee to be interested in you?

General advice

Answer the questions that are asked

• If you are applying to several schools, you may find questions in each application that are somewhat similar.
• Don't be tempted to use the same statement for all applications. It is important to answer each question being asked, and if slightly different answers are needed, you should write separate statements. In every case, be sure your answer fits the question being asked.

Tell a story

• Think in terms of showing or demonstrating through concrete experience. One of the worst things you can do is to bore the admissions committee. If your statement is fresh, lively, and different, you'll be putting yourself ahead of the pack. If you distinguish yourself through your story, you will make yourself memorable.

Be specific

• Don't, for example, state that you would make an excellent doctor unless you can back it up with specific reasons. Your desire to become a lawyer, engineer, or whatever should be logical, the result of specific experience that is described in your statement. Your application should emerge as the logical conclusion to your story.

Find an angle

• If you're like most people, your life story lacks drama, so figuring out a way to make it interesting becomes the big challenge. Finding an angle or a "hook" is vital.

Concentrate on your opening paragraph

• The lead or opening paragraph is generally the most important. It is here that you grab the reader's attention or lose it. This paragraph becomes the framework for the rest of the statement.

Tell what you know

• The middle section of your essay might detail your interest and experience in your particular field, as well as some of your knowledge of the field. Too many people graduate with little or no knowledge of the nuts and bolts of the profession or field they hope to enter. Be as specific as you can in relating what you know about the field and use the language professionals use in conveying this information. Refer to experiences (work, research, etc.), classes, conversations with people in the field, books you've read, seminars you've attended, or any other source of specific information about the career you want and why you're suited to it. Since you will have to select what you include in your statement, the choices you make are often an indication of your judgment.

Don't include some subjects

• There are certain things best left out of personal statements. For example, references to experiences or accomplishments in high school or earlier are generally not a good idea. Don't mention potentially controversial subjects (for example, controversial religious or political issues).

Do some research, if needed

• If a school wants to know why you're applying to it rather than another school, do some research to find out what sets your choice apart from other universities or programs. If the school setting would provide an important geographical or cultural change for you, this might be a factor to mention.

Write well and correctly

• Be meticulous. Type and proofread your essay very carefully. Many admissions officers say that good written skills and command of correct use of language are important to them as they read these statements. Express yourself clearly and concisely. Adhere to stated word limits.

Avoid clichés

• A medical school applicant who writes that he is good at science and wants to help other people is not exactly expressing an original thought. Stay away from often-repeated or tired statements.

For more information on writing a personal statement, see the personal statement vidcast .

Is the 3% cash-back Robinhood Gold card worth it? ‘There’s one audience this card is really good for.’

R obinhood was once an upstart brokerage platform giving investment powerhouses a run for their money by appealing to a new generation of traders and investors. 

Now the financial-services company is continuing its bid to become an integral part of all the money decisions of its users — by rolling out its own credit card.  

The company best known for its trading app has unveiled the Robinhood Gold card , which offers 3% cash back on all spending categories. 

Reward points can go toward travel, shopping and gift cards. They can also convert to cash or go straight into a Robinhood brokerage account. The card has no annual fee, though you need to be a paying member of Robinhood Gold, the app’s membership program, to apply. 

The card is a bid by the company to get customers to move more of their financial lives into the Robinhood ecosystem. 

“It’s the only credit card you’ll need,” Deepak Rao, the general manager of Robinhood Money, told MarketWatch in a statement. “All your financial needs are now served by a one-stop shop, and all money movement is instant instead of taking days or weeks.”

Robinhood isn’t the only brokerage firm working to convince customers to use multiple services at their institution.

Fidelity Investments and Charles Schwab Corp. already have credit cards enabling users to send cash-back rewards to investment accounts. SoFi has a range of banking, lending and investment products. The cash-back rewards in SoFi’s own credit card can be  applied to investing, if that’s what the user wants.  

Like Robinhood, Fidelity is clear that it wants to serve all sorts of customer needs. The asset-management giant said in a statement that it’s spent decades helping “investors simplify their financial lives, with solutions for trading and investing as well as everyday saving and spending.” The aim is “to develop a lifelong partnership with every customer,” Fidelity said.  

This “one-stop shop” goal doesn’t just apply to brokerages: bank customers who keep their savings and checking accounts at one institution are often served up ads to apply for a loan or a credit card there too, for example.

But just because you can do just about everything from credit-card purchases to high-yield savings and retirement investing in one spot, should you? Here’s what the experts told MarketWatch. 

To bundle or not to bundle?

Bundling financial services at one institution can build customer relationships and unlock better terms and offers, experts say. There’s also the powerful pull of convenience. 

“The truth is that a lot of times you can get better returns and better rates if you work with a financial institution you already have a relationship with,” said Matt Schulz, chief credit analyst for LendingTree and author of “Ask Questions, Save Money, Make More: How to Take Control of Your Financial Life.” “That’s not just for the high end, that is for folks that are just getting started.”

Schulz often recommends that consumers who are applying for their first credit card do so at the bank where they already have a savings or checking account. 

Indeed, that might be a dynamic at work with Robinhood’s new card, he said: The card is being issued only to Gold members, who presumably have a history with the company and assets already invested there.

For years, customer satisfaction has tended to be stronger for people who have several services at one place instead of those who have just one product at a financial institution, according to John Cabell, J.D. Power’s managing director of payments intelligence. 

Convenience is one driver, he said. Consumers have also reported getting better pricing and service when they stick with one institution, as well as having more trust in that institution. But bundling financial services is still “a mental calculus that consumers have to do,” he said. 

That’s because a great place to invest might not also be a great place to bank, and vice versa. Grouping financial services may also cause someone to overlook more competitive services elsewhere.

And it’s rare that a consumer can get their every financial need met at one institution, said Dave Grossman, founder of the credit-card rewards website MilesTalk — sometimes the bank that offers the best brokerage account to suit your needs doesn’t offer the right credit cards or savings accounts for your financial goals.

“No one financial institution is generally right in all areas for one person,” he said  “The bottom line is, I think you really need to look at each product individually.”

If your entire financial life is parked in one spot, it may also be too easy to make snap spending and investing decisions instead of taking a beat, some experts caution.  

Though Jarrod Sandra, owner of Chisholm Wealth Management in Crowley, Texas, likes the one-stop-shop approach, he knows there can be a downside. 

“Is it too easy to slide that emergency fund money over for a quick purchase?” Sandra said. “If someone struggles with that, then I like to build a barrier — so to speak — and have those accounts at different institutions.”

Here’s who should consider the Robinhood Gold card 

If you’re thinking of applying for the Robinhood Gold card, there are a few things you should consider first, experts said. 

First off, you’ll need to be a member of Robinhood Gold. That subscription costs $5 a month. That’s effectively an annual fee if you’re thinking of buying a membership just to apply for the credit card, Grossman said.

On the surface, the 3% cash-back rate on all spending categories sounds great, Grossman said — and in fact, it’s one of the best such rates on the market. 

But unlike many other cards, he noted, Robinhood’s doesn’t appear to offer any kind of signing bonus. That means a different card with a lower cash-back rate — but a signing bonus — might be comparable with Robinhood’s, depending on your spending. 

His take? If getting the card would require you to reshuffle your finances, it might not be worth it.

“There’s one audience this card is really good for,” Grossman said. “If you’re already in the Robinhood ecosystem, you love the Robinhood ecosystem, you’re not a travel points or miles person…. And you want your card to earn cash back, this is your card.” 

Schulz seconded that consumers should take a closer look before jumping at what seems like a good deal.

“It’s important not to get starstruck by things like 3% cash back or gold credit cards and make sure to take the time to look into the terms,” Schulz said. “It’s always worth taking a little bit of extra time to look at the fine print.”

It’s also worth asking yourself what you want to do with those cash-back rewards, according to Charles Rotblut vice president of the American Association of Individual Investors, a nonprofit organization promoting long-term investing.  

If a Robinhood Gold user will turn the rewards into cash sitting in their brokerage account, Rotblut worries it could encourage speculative trading from users who view the cash back as free money to play with. 

A risky bet could pay off, or it could bomb, he said. “It’s still money you have. The question is what else could you do with it.” 

But Rao, the Robinhood executive, noted that few credit cards offer the option to immediately funnel cash back toward investments.

Robinhood Gold-card points can be redeemed as cash that can be transferred to brokerage accounts to invest, earn interest or withdraw. The uninvested cash has a 5% yield, Rao said.

Customers can also transfer the money to a Robinhood retirement account, where Gold customers receive a 3% match on Robinhood Retirement IRA contributions.

“Traditionally when you earn cash back it just goes to your checking account and does nothing,” Rao said in a statement. 

Customers can join a waitlist for the Robinhood Gold card, which is expected to be available later this year, according to the Wall Street Journal. The card is issued by Coastal Community Bank and licensed by Visa

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