I currently only have a Visa Check card, and a couple of department store cards. But now with all of these credit card companies offering high reward points, cash back, low interest rates etc., I think it's about time I get one for myself. But after I started looking, I noticed there are tons and tons of different types of cards out there, so I'm trying to decide which one is best for me. I don't travel very much at all (so I don't really need to look at the "mileage" cards right now). I have pretty good credit (low-middle 700's) The card would almost exclusively be used at the grocery store and for gas. I'm just trying to get "bang for my buck" so to speak. Considering you guys are savvy about everything, I thought I'd ask you all. What do you think is the best type of credit card out there? Which do you prefer and why?
I'm currently using Discover as my main credit card. I think its 1% cashback on purchases, 5% on certain things (gas, restaurants, etc.) quarterly, and more cashback if you shop referral from them thru shopdiscover. Overall not a bad card there may be better ones but it's annual-fee free, plus I think you get your credit score every statement.
Bank of America cash rewards is pretty good. I think you get $100 after you charge $500 to the card within six months, then you get 3% on gas, 2% on groceries, and 1% for everything else. You also get an extra 10% when you transfer your rewards dollars into your Bank of America checking or savings. Discover is also not bad. They allow you to redeem your rewards on Amazon purchases, it's a nice set up.
I use Amazon for most of my purchases, so it goes great with my Discover card. I use the card for just about every purchase, then pay it back at the beginning of the month. The cash back adds up pretty quick, then I can use it on Amazon. I've also had some great finds using Discover Deals, plus they give your free FICO score.
Discover It card is one of the best rated ones in my research. I use it primarily. It's good if you shop online a lot because their cash back portal is one of the best. Right now, they do give double cash back for one year. If you wait, they usually give $150 cashback if you spend $750 in 3 months for new customers. I also have a Chase Freedom card. One of the best VISA cards out there, in my opinion. Good quarterly rotations that complement the Discover It well. I think they're giving $200 cashback if you spend $500 in 3 months right now. For gas and groceries, AmEx has the Everyday Blue, gives 2-3% on them. AmEx has good deals every now and then as incentives. Overall, though, I don't think they give as good cashback as the others. I considered it, but I'm comfortable with my Discover It and Chase Freedom.
Ha ha! I would love to travel, but I have 2 small kids who kind of make travelling a long planned out, process. So we don't travel nearly as much as I'd like.
http://www.nerdwallet.com/ I'd just go here and shop for which ones offer what works for you. I have a pretty good cash back card and the Chase Sapphire Preferred for miles since I like dine out and travel here and there.
Amex Blue Preferred card is what I have. It's cash back but I don't remember exactly what the percentages are for certain things.
Its funny, because those people are actually financial idiots. They are right that some people shouldn't use credit cards, but just throwing that out there as universal advice is such a terrible idea. The Dave Ramseys of the world should all be fired.
Miles are by far the the best bang for your buck even if you do not travel. For example, I signed up for the United MileagePlus card and they gave me 50,000 miles for signing up and spending $1,000 in 3 months. 50,000 miles is two free roundtrip tickets anywhere in the United States. With 60,000 miles you can fly most places internationally. I am able to fly roundtrip to Italy this summer for 60,000 miles, a $1,500 value. The first year's annual fee is waived ($95). Even with the annual fee it is a great card. Say for example: I spend about $25,000 a year on my card. Using a general cashback I can get a $250 - $375 (1 - 1.5%) cashback. In miles that is 25,000 miles and a free roundtrip ticket to say Chicago, California, or New York. Plus they give you a 10,000 annual bonus when you spend more than 25,000 in a year. So that is really 35,000 miles. In 2 years you will have 70,000 miles which is a free international trip plus 10,000 miles leftover a roughly $1,000 - $2,000 value. In cashback you would only have $500 - $750. You will end up traveling eventually and this encourages me to travel more which I have learned to love the past 2 years. I can refer you if you want. I dont know much about other Points cards though. But my girlfriends mom said points are way better than cashback too.
Details? My dad has something like 450k Starwood points, so we're always staying there for free. But I don't ask all the time, so earning my own would be awesome since we love their hotels so much.
In my research I came across them quite a few times. But once again, I was scared off by the lack of traveling I do.
If the bulk of your spending is in supermarket and gas stations. Your best bet is the Amex Blue Cash Preferred (6% back at supermarkets, 3% back at gas stations and dept store, 1% everything else, $75 annual fee) or Amex Blue Cash Everyday (3% back at supermarkets, 2% back at gas stations and dept store, 1% everything else, no annual fee) If you don't travel, that would be the best card. I wouldn't get the travel cards just yet because usually those points would have an expiration date. It's easy to extend the expiration dates, but if you don't think about it you might forget then waste those points.
This is true - there are other ways as well. However, whether mileage cards are good in the long run depends on how quickly you spend the miles (airlines are slowly devaluing points) and how much you spend per month. The bonus is great. But beyond that, if you only spend $100 / month on the card, it's not going to pay for its annual fee. And if you primarily use it for groceries and gas and can go 2-3% cash back there, it will generally come out better that way. The big benefits of mileage cards are in the bonuses, but after that, they work out to about the equivalent of 1.5-2% cash back, except not in cash. And you have an annual fee. The best way to use mileage cards is to churn them - apply, get the bonus, cancel in 11 months before the annual fee comes up, and repeat with a different card. OP - about how much do you plan to spend annually on it?
I don't think it's a great idea to cancel your credit card after using it for only a year. To avoid a fee you can always call and keep asking to waive the annual fee. From what I heard with AMEX you may need to pay their annual fee but they'll reward you with more points to keep you happy.
