I have almost 30 credit cards, and there are 5 cards I keep in my wallet at all times. Here's why.

Business Insider Finance 1 month ago

While establishing your credit profile and building your credit score is important, I think that the most appealing benefits of using credit cards regularly are the rewards, points, and cash back you can gain on purchases that you need to make anyways.

In order to maximize your rewards earning, you should use a combination of cards. I personally have almost 30 cards open. While not everyone wants to carry 20-plus credit cards at once, using a small rotation of cards can still get you a tremendous amount of additional value if you utilize them correctly.

Keep in mind that we're focusing on the rewards and perks that make these credit cards great options, not things like interest rates and late fees, which can far outweigh the value of any rewards.

Here are the five cards I always keep in my wallet all the time, and why:

Chase Sapphire Reserve

This is one of the most popular cards among people who love to travel, and it's my number-one card, too. While it does come with a pretty sizeable $450 annual fee, there are numerous benefits that make the Sapphire Reserve worth it. Along with not charging foreign transaction fees (a must for travelers!), every year it offers you statement credits for up to $300 spent on travel. You also get 3x points on all travel purchases (excluding the $300 travel credit).

You also get 50% more value if you redeem your points through Chase Ultimate Rewards, meaning 50,000 points are worth $750 if you use them for travel booked through Chase. You can also transfer your points to Chase's partners like United and Hyatt for potentially even more value.

In addition to travel benefits, you also can earn 50,000 bonus points by spending $4,000 on purchases within 3 months of opening your account. You'll also receive 3x points on dining and 1 point per dollar spent on all other purchases.

In conjunction with all of the points you earn, you get a number of additional benefits including a statement credit of up to $100 as reimbursement for your Global Entry or TSA PreCheck application fee every four years. You also get Priority Pass Select membership, which offers access to over 1,200 airport lounges around the world.

Click here to learn more about the Chase Sapphire Reserve from our partner The Points Guy.

Discover it Cash Back

The Discover it Cash Back card doesn't come with an annual fee, in contrast to the Sapphire Reserve. The highlighted feature of this card is the 5% cash back you can earn on purchases on up to $1,500 each quarter you activate.

Every quarter, the 5% bonus category rotates. In the past, categories have included grocery stores, gas stations, Uber, Lyft, Restaurants, PayPal, Amazon, Target, and Walmart.com. All other purchases receive 1% cash back.

The Discover it's cash-back rewards can be redeemed in any amount at any time, as they never expire. Plus, at the end of your first year, Discover will match the amount of cash back you've earned, with no limit on how much it'll match. This is effectively the welcome bonus for the card, so the Discover it is an especially great option for anyone with a year of big spending coming up.

Chase Freedom

The Chase Freedom card is nearly identical to the Discover it Cash Back card, with no annual fee and rotating quarterly 5% bonus categories for up to $1,500 in spending. The main differences are that instead of matching cash back at the end of the year, Chase will give you $150 back (or 15,000 Ultimate Rewards points) after you spend $500 within three months of opening the account.

You earn cash back with the Freedom card, but if you also have a Chase card that earns Ultimate Rewards points, like the Chase Sapphire Reserve or the Chase Sapphire Preferred Card, you can convert your cash back into Chase points and potentially get more value by using your rewards for travel. This way, you're earning 5x points on the bonus categories, and given that travel website The Points Guy values Chase points at 2 cents apiece, that's double the return of earning 5% cash back.

Click here to learn more about the Chase Freedom from our partner The Points Guy.

Fidelity Rewards Visa Signature Card

This is a great no-annual-fee, 2% cash-back card that you can use for all other purchases. The rewards are earned as points, so for every dollar you spend, you get 2 points. These can be redeemed once you have reached 5,000 points ($2,500 in spending).

Since there are no limits or expiration on your points, and no restrictive categories, this is a good card for making purchases that don't fall into travel, dining, or one of the bonus quarterly categories.

Chase Freedom Unlimited

The Chase Freedom Unlimited is another no-annual-fee card I keep in my wallet for purchases outside of the high-earning bonus categories. As with the Chase Freedom, if you have a premium Chase card that earns Ultimate Rewards points, you can transfer your rewards to airline and hotel partners.

It offers 1.5% back (or 1.5x Ultimate Rewards points), on every purchase. You can earn 3% back (or 3x points) on the first $20,000 you spend in your first year of cardmembership (a public offer of $200 back/20,000 points after you spend $500 in the first three months is also available).

The Freedom Unlimited is an excellent option to make sure you're never leaving points on the table. It's also worth noting that there is no minimum required to redeem for cash back.

Click here to learn more about the Chase Freedom Unlimited from our partner The Points Guy.

As you can see, you don't need to have two dozen credit cards to be earning rewards daily. By researching and applying for cards that fit your lifestyle, keeping a small rotation of credit cards in your wallet, and monitoring credit card sign-up offers, you can earn valuable points or cash back on every purchase.


Source link
Read also:
Business Insider › Finance › 1 month ago
Table of Contents Travel rewards credit cards Cash-back credit cards Airline credit cards Hotel credit cards Business credit cards Travel rewards credit cards First up are the cards that can get you the most value if you're willing to put in the work...
Business Insider › Finance › 3 weeks ago
The author, Holly Johnson, has 26 credit cards and a consistently high credit score. The most important factors that make up your FICO score include your payment history (35%) and how much you owe in relation to your credit limits (30%), she wrote...
Business Insider › 1 month ago
A secured credit card requires a cash deposit to serve as collateral against your credit limit. Since the security deposit minimizes the card issuer's risk, most secured credit cards are easier to qualify for when you have poor credit or none at all...
Business Insider › Traveling › 1 month ago
I've been earning points and miles for the last seven years. I use more than a dozen rewards credit cards to maximize the return on all my spending. In large part thanks to these cards, I'm able to earn more than 1 million points and miles each year...
CNBC › 2 weeks ago
We analyzed 27 credit cards that are marketed toward consumers with no or poor credit to determine the best cards for building or rebuilding your credit.
Business Insider › Traveling › 3 weeks ago
When you travel, you need a practical wallet that can hold your passport, boarding pass, and all your credit cards and cash. The Bellroy Travel Wallet fits the bill with its super smart design that holds everything easily without adding bulk. See also...
Business Insider › Finance › 1 month ago
I opened around half a dozen store credit cards in my early 20s for the discounts. While I saw a brief dip in my credit score, they eventually helped me build and maintain good credit because I always paid off my statement in full and on time. Using...
Business Insider › Finance › 2 months ago
If you're looking to open a rewards credit card, you'll want to have a general idea of the credit score you'll need to be approved. Different cards have different credit score requirements, but all "requirements" are really just guidelines. The issuer...
Business Insider › Traveling › 1 month ago
Here are the best rewards credit cards of 2019: Best rewards credit card overall: Chase Sapphire Reserve Best credit card for travel perks and benefits: Platinum Card® from American Express Best credit card with a low annual fee: Chase Sapphire...
Business Insider › Lifestyle › 1 week ago
You can use most major credit cards on PayPal, including Visa, MasterCard, Discover, American Express, and more. It's easy to link a credit card to your PayPal account using the mobile app or website. You can add multiple credit or debit cards and...
Sign In

Sign in to follow sources and tags you love, and get personalized stories.

Continue with Google
OR