When it comes to choosing credit cards many people ask me, “What credit card should I get next Beez?” and my answer is always “it depends what you are looking for and what you already have”. There are three main types of credit cards:
- Cash back
- Reward points
- No rewards (usually low interest rates)
Cash back and reward point credit cards focus on giving you rewards based on your type of spending. Gas, Groceries, Travel (Airplane tickets, hotels, car rentals), and shopping are the categories that companies give you extra points or cash back on.
When choosing your next credit card you need to look at what you already have in your wallet. One travel card, one cash back card, and one everyday points card is all that most people need. Analyze what your actual needs are and pick a card based off of those needs. If you do not travel much don’t get a travel card, yes I know the Chase Sapphire Reserve and AMEX Platinum cards look cool, but do you really need them? I see many people waste money on annual fees with travel cards because they don’t travel much. Look at the other alternative travel cards with lower annual fees or no annual fees.
If you want to learn more about credit cards, how to build credit, the do’s and don’ts of credit, and credit in general check out my best selling book Financial Starter Kit.
Due to Covid companies have become more strict on their credit lending, so score requirements may be higher than normal. Most of these cards offer sign up bonuses.
Travel Cards
The Chase Freedom Unlimited (690+ Credit)
A good cashback card with no annual fee, 0% intro APR for the first 15 months, 1.5% cash back on all purchases , 5% cash back on travel booked through Chase and 5% cash back on grocery store purchases.
Citi Premier Card (690+ credit)
3x the points on airfare, hotels, supermarkets, dining and gas stations. For all other purchases 1x the points. There is a $95 annual fee.
American Express Platinum (690+ credit)
The AMEX Platinum card is my favorite travel card and offers the most perks when it comes to travel. I discuss all of these perks in detail and how to take advantage on my AMEX blog post, but the stand outs are free Gold Status with Marriot and Gold Status with Hilton.
With this card you are able to earn 10x points on Gas Stations and Supermarkets and 5x points on flights. The annual fee is $550 a year. If you are interested in signing up for an American Express Platinum Card and earning 75,000 bonus points click HERE.
Cash Back Cards
Discover IT (690+ credit it is usually 620+)
This is my favorite cash back card if you don’t know why check out my Discover blog post. In short the Discover IT offers 5% cash back on rotating categories, has a double cash back bonus for your first year of having the card, and no annual fee. If you are interested in this card use my link to get $50 on your first statement Discover.capitalsb.com .
Citi Double Cash Card (720+ credit)
The Citi Double Cash card offers 2% cash back in a different way. You get 1% cash back when you spend and another 1% back on every dollar paid off your statement. There is no annual fee with this card.
Bank of America Cash Rewards (690+ credit)
The Bank of America Cash Rewards card offers 3% cash back in the category of your choice, automatic 2% at grocery stores and wholesale clubs (up to $2,500 in combined choice category/grocery store/wholesale club quarterly purchases) and unlimited 1% on all other purchases. There is no annual fee.
Blue Cash Everyday Card (690+ credit)
The Blue Cash Everyday Card allows you to earn 20% back on purchases at Amazon.com on the Card in the first 6 months, up to $200 back. 3% Cash Back at U.S. supermarkets (on up to $6,000 per year in purchases, then 1%). 2% Cash Back at U.S. gas stations and at select U.S. department stores. 1% Cash Back on other purchases. There is no annual fee.
I hope this helped you with picking out your next credit card, remember we don’t use credit cards to get into debt. Pay off your credit card balances in full every month. If you struggle with this stop using credit cards until you build discipline. Let me know if you want me to go more into depth on what I think are the best credit cards.
"Reverse engineer your life. Live a life of abundance",
- Beez
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