Hey friends! As a credit card user for the past seven years, I've learned a lot about how to make the most of my spending with credit card rewards. Over the past few years, I've expanded my knowledge and developed a personal credit card strategy that has earned me over $5,150 in value in just the last two years. Today, I'm excited to share my current credit card lineup with you, and a bonus two-player strategy for maximum value. Whether you're looking to get some quick cash, earn rewards for a trip down the road, or just want to make smart financial choices, my credit card strategy can help you get there. So, let's dive in and discover the secrets to using credit cards wisely.
My Credit Card Mentality
I view credit cards as a different version of a debit card that earn bonus points and cash back. Credit card issuers make money every time you make a transaction with a card and anytime you carry a balance which you end up having to pay interest on. The number one thing to understand with credit cards so that you take advantage of the system is to pay your statement balance in full, every month, and on time. I only make purchases on my credit cards that I know I have the money in the bank to pay off at the end of each month. This way I reap all the benefits of spending on a credit card, without ever paying interest. Credit cards are strictly a tool to get value back from spending you are all already planning to do with cash on hand (or in a bank account). I also take advantage of intro offers that many card issuers offer when signing up for a new card and meeting a certain spend requirement in 3-6 months typically. These intro offers can earn you anywhere from $150-$900 in straight cash back or $150-$3000+ when used to book travel.
My Cards:
Chase Sapphire Preferred
Chase Freedom Unlimited
Southwest Rapid Rewards Priority
Amazon Prime Rewards
American Express Platinum
American Express Blue Cash Preferred
Capital One Quicksilver
What My Cards Earn:
Chase Ultimate Rewards Points
The Points Guy value's Ultimate Rewards points at 2 cents per point. I personally value them at 1.5 cents per point because this is the most reliable value I have found for redeeming these points. Typically, I transfer my points to Southwest Airlines for domestic flights in the Western US. At a baseline value, you can always redeem Ultimate Rewards Points for a minimum of 1 cent per point when redeemed for cash back or travel.
American Express Membership Rewards Points
The Points Guy values Membership Rewards points at 2 cents per point. I personally value them at 1.3 cents per point. Availability for transferring Amex points for domestic travel has been hit or miss for me which is why I do not value them as highly as Ultimate Rewards Points. At a baseline value, you can always redeem Membership Rewards Points for cash back at 0.6 cents per point or travel at 1 cent per point.
Cash Back Rewards
The American Express Blue Cash Preferred, Capital One Quicksilver, and Amazon Prime Rewards each earn cash back rewards that are equal to the percentage back they receive for different spend categories.
How I Use My Cards:
(For cards that earn multipliers, I included an effective percentage back based on my valuation of each points currency above)
Gas: American Express Blue Cash Preferred (3%)
Groceries: American Express Blue Cash Preferred (6%)
Online Groceries: Chase Sapphire Preferred (3X) (4.5%)
Streaming Services: American Express Blue Cash Preferred (6%)
Dining: Chase Freedom Unlimited (3X) (4.5%)
Transit: American Express Blue Cash Preferred (3%)
Lyft Rides: Chase Sapphire Preferred (5X) (7.5%)
Amazon: Amazon Prime Rewards (3%)
Drug Stores: Chase Freedom Unlimited (3X) (4.5%)
Southwest Flights: Southwest Rapid Rewards Priority (3X) (4.5%)
Other Airline Flights: American Express Platinum (5X) (6.5%)
Hotels: American Express Platinum (5X) (6.5%)
Other Travel: Chase Sapphire Preferred (2X) (3%)
Internet or Cable Bills: Southwest Rapid Rewards Priority (2X) (3%)
Everything Else: Chase Freedom Unlimited (1.5X) (2.25%)
My Credit Card Lineup Review
I do not have the perfect credit card lineup, but it is one that I have extracted tons of value from none the less. As you may have noticed, I do not use my Capital One Quicksilver for any purchases at the moment. That is due to the fact that it earns a baseline 1.5% on everything which is something my Freedom Unlimited does as well. I prefer to earn Ultimate Rewards Points from Chase because I am able to extract more value from them with my Sapphire Preferred and I love the flexibility of the points. The Quicksilver is a card I got during college strictly because I had an intro offer somewhere between $150-300. It is a no annual fee card so I have no problem just leaving it open. I was led to essentially every card I have through some kind of intro offer that have earned me anywhere from $150 to 125,000 Membership Rewards points ($1250 min value). Four of my cards charge annual fees, but I make sure I am getting enough value out of each card to at a bare minimum break even with minimal effort/spend.
Bonus: 2 Player Strategy
One of the best ways to extract value from your credit card setup is to use a player 2, which for me is my wife. Anytime we look to get a new card, we see if we have a referral link that we can send to one another so we can both benefit on the referral bonus side, and intro offer side. My wife recently got the Chase Freedom Flex using my referral link which got me a 10,000 point bonus and my wife got a 20,000 ($200 min value) point intro bonus and 5% back on groceries for the first year of having the card. The Freedom Flex is a card that I have missing from my personal lineup, but was effectively able to add in to the mix thanks to having a player 2. The Freedom Flex offers 5X (7.5%) back on rotating categories each quarter so it is super valuable. For example, the current quarterly bonus category is on Amazon and Lowes purchases, so we will use the Freedom Flex to get 5X back on Amazon this quarter compared to the 3% I normally get with my Amazon Rewards card.
Top 3 Cards I Recommend For Anyone:
Chase Freedom Unlimited: (20,000 points after $500 in spend in first 3 months)
Chase Freedom Flex: (20,000 points after $500 in spend in first 3 months)
Chase Sapphire Preferred: (60,000 points after $4,000 in spend in first 3 months)
Intro bonus amounts are accurate to time of writing. Last Updated: 06/06/2023
These three cards are known as the Chase Trifecta and they are a setup I recommend to everyone! All of these cards earn Ultimate Rewards points which I value highly as I touched on earlier. Both of the Freedom cards are no annual fee cards which have impressive multipliers compared to other no fee cards. The Sapphire Preferred is a $95 annual fee card which comes with a $50 hotel credit. The best thing about the Sapphire Preferred is the large intro bonus, the ability to use transfer partners, and the fact that it can be downgraded to either one of the no annual fee, Freedom cards if down the road you feel like you are not getting value out of the card. If you are looking to get one of these cards, click the links above and it helps us both out. Make sure you check out Chase's website to make sure you are getting the best possible intro bonus. Thanks!
Stay Tuned:
If you found this article valuable I would appreciate it if you shared it with a friend. If you have any questions, tips, or general info you want to share, leave a comment or use the chat and I will get back to you! I am going to be doing an in-depth review of each one of my cards in the future so you can better understand the pros and cons of each individual card in my wallet and which ones are right for you. Sign up for my newsletter so you don't miss it!
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