Difference between revisions of "Reciprocal museum programs"

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{{DISPLAYTITLE:Temp - {{Title|general purpose}} (2018)}}
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{{DISPLAYTITLE: Temp - {{Title|optimize rewards}} (2018)}}
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{{seo|description=Which credit card is your best choice for earning the highest reward rate on your everyday spending: the Chase Freedom Unlimited, Citi DoubleCash, or some other card?}}
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{{seo|description=Increase the rewards from your credit card spending by using cards that earn the best reward rates on bonus categories, like restaurants, travel, groceries, and gas.}}
 
{{Page|article|Card Strategies}}  
 
{{Page|article|Card Strategies}}  
  
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{{Image|BestChoice.jpg|full}}  
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{{ImageX|ChooseCard.jpg|full}}  
  
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If you are following our advice, you will eventually get a handful of credit cards for their travel benefits—such as one or more {{Link|premium cards|premium travel-oriented credit cards}}, an {{Link|Checked Bags|airline credit card for the airline you fly the most}}, and perhaps a couple of hotel credit cards.
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The easiest way to earn free travel is to get a credit card that earns rewards points on your purchases; and then use that card, rather than cash or check, whenever you can. Over the course of a year, you’ll effortlessly earn thousands of points you can use for free flights and hotel rooms. By simply choosing the right {{Link|general purpose|general-purpose rewards card}}, you should be earning at least 2% in rewards, on all your credit card spending.  
  
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You could use any of these credit cards to earn rewards on your purchases. But unfortunately, they probably don't offer the highest possible reward rate for your most of your spending. Since your goal is to earn as many points as you can, it is worthwhile to sign up for an additional credit card—one that is specifically chosen to earn the best possible reward rate on your everyday purchases.  
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However, you can do even better. Many credit cards offer higher-than-normal reward rates for spending within certain categories. For example, one card may give bonus rewards for purchases from gas stations and supermarkets, while another card may give bonuses on travel and restaurants.  
  
 
<blockquote>
 
<blockquote>
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GET the cards that make sense for their travel benefits; but USE the card that earns the best rewards for your spending. And use it, instead of cash or checks, whenever you can.
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By using different cards for different types of purchases, you can earn more reward points (or cash back) on your spending—with rewards rates as high as 10%!
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</blockquote>
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</blockquote>  
  
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You'll slowly and surely earn enough points for free airplane tickets and hotel rooms. If you make the effort to use your card to pay for as many of your expenses as you can, you'll increase the amount of free travel that you earn.
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Unless you have problems with credit, you don’t need to worry about getting a handful of new credit cards, just to earn more rewards. Getting a few additional cards won’t trash your credit score—it may just improve it. For more information, and general tips, see our {{Link|Credit Cards 101}} article.
  
 
{{TOC}}
 
{{TOC}}
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*[[#(Almost) never use cash—earn rewards instead|Use your card as often as you can]]
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*[[#Using different cards, for different purchases, is a bit of hassle|Using different cards, for different purchases, is a bit of hassle]]
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*[[#The best general purpose reward card (for most people)|The best general purpose reward card (for most people)]]
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*[[#Tips for getting reward cards for different spending categories|Tips]]
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*[[#Who should get a different card?|Who should get a different card?]]
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*[[#What type of points to focus on?|What type of points to focus on?]]
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*[[#For most people, the next best alternative is a great cashback card|The best alternative is a great cashback card]]
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*[[#The best cards for earning bonus rewards|The best cards for earning bonus rewards]]
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*[[#Advanced options|Advanced options]]
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*[[#Reward Combos|Reward Combos]]
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*[[#Increasing your reward rate with gift cards (advanced)|Increasing your reward rate with gift cards (advanced)]]
 
{{/TOC}}
 
{{/TOC}}
  
 
{{Main|article}}
 
{{Main|article}}
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=== <span id="Never Use Cash"> (Almost) never use cash—earn rewards instead </span> ===
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=== Using different cards, for different purchases, is a bit of hassle ===
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<ul class="bulletlist">
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<li>'''To be fair, optimizing your rewards, by using different credit cards, makes your life more complicated'''. It is simpler to carry around a single general-purpose reward card, and use it for all your purchases; than it is to get, carry, and choose from a collection of different reward cards.</li>
 +
 
 +
<li>'''Not everyone wants to bother, and we don’t blame them'''.</li>
 +
 
 +
<li>'''However, many other people (and some of us) get immense satisfaction about getting the highest possible rewards from their spending''', and wouldn’t dream of “only” earning 2 - 2.5% on a purchase, when they could be earning 3 - 5%, or even more. It is not just the extra points—it is the extra sense of satisfaction from taking your game to the next level.</li>
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<li>'''Within the “points hobby”, this is a famous source of tension between spouses'''—one spouse gets frustrated, when the other spouse doesn’t wind up using the “right” credit card for different purchases. Don’t let it bother you. If you or your spouse is not interested in having one more thing to think about, stick to a great general-purpose rewards card.</li>
 +
</ul>
  
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Your goal is to collect as many miles or points (or as much cash back) as you can. That means that you should use your reward credit cards whenever possible, rather than paying with cash, a debit card, or a check. Start putting everything on your cards, and your rewards will build up quickly.
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If you want to maximize your rewards, build up a collection of cards, and use the right card for each purchase. If you are truly dedicated, you can build up a portfolio of more than a dozen cards, to absolutely maximize the rewards on all your purchases.
  
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{{ImageX|LockedCash.jpg}}
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=== Tips for getting reward cards for different spending categories ===
 +
 
 +
The right set of cards to get, and the order to get them, depends on your individual circumstances.  
  
 
<ul class="bulletlist">
 
<ul class="bulletlist">
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<li>'''Every time you use cash, a check, or your bank card (when you could have used your credit card), you are missing out on reward points'''. Each individual transaction may not seem like much, but it adds up over time.</li>  
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<li>'''There is no single card that earns great bonus rewards in every category'''. To optimize your rewards, you’ll need to get a set of cards, and use a different card for each category. However, you can typically get one card that is good for both travel and restaurants, and another card that is good for groceries and gas.</li>
 +
 
 +
<li>'''Focus on the cards that earn bonus rewards for the categories where you spend the most money'''. If you mostly go out to eat, a card that earns bonus rewards on restaurants is going to be more valuable than one that earns bonus rewards on groceries, and vise versa.</li>
 +
 
 +
{{ImageX|Restaurant1.jpg}}
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 +
<li>'''Don’t focus on the NUMBER of points earned, focus on the VALUE of the points'''. The value of different types of points and miles varies widely. On one end of the scale, credit card reward points (like Ultimate Rewards) are usually worth close-to, or more than, 2 cents each. On the other end of the scale, some hotel points, like Hilton's, are only worth .4-.5 cents each.</li>  
  
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<li>'''Using a credit card, instead of cash, has some other benefits as well'''. You’ll have better records of your spending, build up your credit history, and make fewer trips to the ATM (paying less in ATM fees). In addition, your credit card will often give you some protection if something you buy breaks, is stolen, or even drops in price.</li>
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As an example, the Hilton card’s 6x rewards on groceries sounds a lot better than the Amex’s Premier Reward’s 2x rewards. However, the Hilton points are worth around 2.7 cents per dollar, and the Membership Rewards points are worth around 3 cents per dollar. So, the 3x Membership Reward points is actually the more valuable reward rate. See more detail below.  
  
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<li>'''While we strongly recommend using your credit card for as much of your spending as possible, you don’t have to take it to an extreme'''. If you are making a small purchase, and paying cash will speed up the process for everyone, don’t worry about a few cents worth of points. If you are under the store’s minimum for taking credit cards, don’t make a fuss, just pay with cash.  And you usually don’t want to use your credit card with any business that will add on an extra fee.</li>  
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<li>'''To determine whether a card is worthwhile, you need to compare the extra points you expect to earn, to the card’s annual fee'''. To figure out the value you can get from a card, you need to take the amount you expect to spend, and multiply it by the extra points that you will earn, above-and-beyond the points you would have earned by just using your general-purpose reward card; and then subtract out the annual fee you need to pay to use the card.</li>  
  
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<li>'''Many of the bills that you pay each month can be paid with a credit card, rather than with a check or automatic bank withdrawal'''. For example, pretty much every wireless and cable company accepts credit card payments, as do many utilities, insurance companies, and gyms. Go back over a few months of bank statements, and see who you are paying on a regular basis. Then check which of these companies you can switch over to a credit card.</li>
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{{Card|BlueCash}}
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</ul>
 
  
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=== The best general purpose reward card (for most people) ===
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An example may make this clearer. The Amex Blue Preferred card offers an amazing 6% cash back on your first $6,000 worth of supermarket spending. If you spend $5,000 on groceries each year, you’ll earn $300 cash back. But the real added value of the card is lower. If you already have the Chase Unlimited combo, you could have used your Unlimited card to earn 7,500 Ultimate Rewards points on those same amount of purchases. If you value the Ultimate Reward points at {{Value|UR}} cents each, that works out to {{Value|UR|7500}}. The Blue Cash card only earns $170 in additional rewards. And, in order to earn those extra rewards, you’ll need to pay $95 per year, for the additional card.
  
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Which general-purpose reward card is best?  For most people, the answer is clear...
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The final net benefit works out to $75 per year, not the $300 you might earn in rewards. If you spend less on groceries, you will earn less in extra rewards. If you spend the full $6,000, you can earn slightly more.  
  
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<blockquote>
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When you are determining whether it makes sense to get a card for ongoing use, we recommend ignoring any waiver of the first-year’s annual fee . You are focusing on whether these cards make sense for the long run. The waived annual fee, is essentially just part of the signup bonus for the card, and doesn't affect the long term value proposition.
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You should get BOTH the Chase Sapphire Reserve card and the Freedom Unlimited card. The two cards work together to give you fantastic reward rates on your purchases.
 
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</blockquote>
 
  
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The Freedom Unlimited card earns 1.5x Ultimate Rewards points on every purchase, which normally are worth 1 cent each towards travel purchases or gift cards.  
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<li>'''If you are “collecting” signup bonuses, you should generally postpone signing up for cards that just earn higher reward rates'''. The easiest way to build up lots and lots of points and miles is by collecting signup bonuses for new credit cards. If you follow this strategy, much of your credit card spending will be directed towards meeting the Initial spending requirements of your new cards. As a result, you will have less spending leftover. to put on the cards that earn bonus reward rates; the amount of extra value you’ll get from these cards will be low; and it is less likely that you can justify any additional annual fees. {{Link|Signup Bonus Intro}}.</li>
  
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However, if you also have the Chase Sapphire card, you can use these points to purchase travel, through the Chase website, at 1.5 cents each. This gives you a "cash" rewards rate of 2.25 cents per dollar, higher than most cash back cards.  
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Even more importantly, there is a limit to how many credit cards you can collect during any span of time. You’ll get more value from focusing on good signup bonuses, rather than on increasing the rewards you earn directly from your spending. Concentrate on signup bonuses first, and worry about optimizing your reward rates later.  
  
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Even better, these points are "transferable". You can convert your Ultimate Reward points to a number of different types of airline and hotel points, and then redeem them for frequent flyer tickets or free hotel nights. For example, you can convert your points to Hyatt points to book an award night, or to United miles to book a frequent flyer ticket.  
+
<li>'''Small business credit cards expand your options for earning bonus rewards'''. If you have any type of small-business (even if you also have a full-time job and you haven’t made any money yet), you are eligible for small-business credit cards. Many of these cards offer bonus rewards on spending categories that aren’t often available from personal cards—such as purchases from office supply stores or telecom providers. Technically, you aren’t supposed to use these cards for personal expenses, but many people do with no problems. If you are eligible for these cards, and willing to use them for your spending, you’ll be able to increase the rewards even further. {{Link|Business Cards}}.</li>
  
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At a "base value" of {{Value|UR}} cents per point, you'll be earning {{Value|UR|1.5}} cents per dollar, and you can earn even more with particularly good redemption opportunities.
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{{Card|InkPreferred}}
  
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{|style="margin: auto;"
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<li>'''You only need to pay attention to bonus rewards that are better than 2% back'''. Because you should be earning 2% or more with your general-purpose card, earning 2% on a bonus category is not particularly enticing. Only pay attention to cards that have category bonuses of 3% or more. Just remember, that depending on the type of points, a card that only earns 2x points, may be earning more than 3% in value.</li>  
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|style="width: 50%;"|{{Card|freedom|guide}}
 
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|<span style="font-size: 48pt;">+</span>
 
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|style="width: 50%;"|{{Card|sapphirereserve|guide}}
 
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|}
 
  
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<ul class="bulletlist">
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{{Card|DoubleCash}}
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<li>'''For most people, earning Chase Ultimate Reward points is a better option than earning other types of credit card rewards'''. Not all points are equal—some points are worth more than others. For most people, Ultimate Rewards is the best credit card rewards program.  {{Link|transferable points}}.</li>
+
</ul>
  
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<ul>
+
=== What type of points to focus on? ===
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<li>Unlike Amex's Membership Reward points and Citibank's ThankYou points, you can get good value from your Ultimate Reward points, without having to deal with the hassles  of frequent flyer miles. Truth be told, it is getting increasingly harder to find frequent flyer award space and get good value from your miles. Fortunately, Chase points can be used in much easier ways. When you use your Ultimate Reward points for hotel stays through Hyatt, you can usually get more than {{Value|Hyatt}} cents per point in value, and sometimes more than 2-3 cents per point. You can always use them, at a fixed value of 1.5 cents each, to make any travel purchase through the Chase website. And you can sometimes get a slightly higher rate when you use them to purchase Southwest Airlines or JetBlue tickets, without worrying about award availability.</li>
 
  
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<li>But, unlike the cash-like points you can earn from some other credit cards, you still have the upside of getting much more value from your reward points. When you do find an opportunity to use your Ultimate Reward points for frequent flyer tickets or to make a particularly valuable hotel redemption, they can be worth 2-5 cents per point (3-7.5% per dollar) or even more.</li>
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Before you can determine which cards to get for different spending categories, you need to make some decisions about which types of points to earn.  
  
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<li>Accumulating Ultimate Reward points lets you try out a potentially extremely lucrative transferable reward program, while still giving you valuable ways to simply "cash-out" your points, if you find you can't ever use them effectively for frequent flyer tickets.</li>
+
We display a "value" for the reward rate of every card, but that is calculated from a "base" value per point. But, depending on your plans and situation, these points can be much more valuable, or much less valuable, than the base values we use. The "real" value per point differs for each person, depending on how they expect to use their points, how much they spend each year, and how many points they already have. {{Link|point values}}
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</ul>
 
  
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<li>'''The Freedom Unlimited card earns 1.5x Ultimate Reward points per dollar (valued at {{Value|UR|1.5}} cents per dollar) on every purchase'''—for most people, this is the highest possible reward rate for your everyday spending.</li>  
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<ul class="bulletlist">
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<li>'''It is hard to go wrong with cards that earn Ultimate Reward points'''. If you have the Chase Sapphire Reserve card, you can use your points (like cash) to purchase a broad range of travel through the Chase website at 1.5 cents per point. You can easily get more value by using your points with Hyatt award nights and less-expensive Southwest Airlines tickets. And you leave open the possibility of getting much more value per point by transferring your points to one of Ultimate Reward's airline partners to use for frequent flyer tickets. {{Link|Ultimate Rewards}}.</li>  
  
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<li>'''In addition, the Sapphire Reserve card earns 3x Ultimate Rewards points (valued at {{Value|UR|3}} cents per dollar) on travel and restaurant spending'''. Chances are that you spend a significant amount of money on travel and restaurants. When you use the Sapphire Reserve card, you'll be earning great reward rates on these categories. Over time, you might choose to get additional cards (and pay additional annual fees) to get a higher reward rate on dining and airfare purchases. But, these other options aren't better for non-airfare travel, and are only better for airfare and dining if you you are committed to using your points for frequent flyer tickets.</li>
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It is pretty safe to assume that you can easily get at least 1.5 - 2 cents in value from your Ultimate Reward points. As a result, if there is an Ultimate Rewards card that has good bonus category rates, it will generally earn more valuable rewards than other cards. The main obstacle is whether you are blocked from getting the Sapphire Reserve, or some of the other cards, by the Chase 5/24 rule. {{Link|Chase 5/24}}.
  
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<li>'''You’ll start out with 50,000 points (valued at $900) from the Sapphire Reserve card, plus a $150 signup bonus from the Freedom Unlimited card'''. 50,000 points is two domestic tickets on United Airlines, or 5 nights in a very nice Hyatt hotel.</li>  
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<li>'''If you highly value business and first class award tickets, and have the ability and the patience to build up large quantities of points and find available award space, you should always try to earn as many "transferable" points as you can'''. You'll typically get 3 - 10 cents per point when you use your points to book business and first class frequent flyer tickets, so flexible credit card points that can be transferred to multiple frequent flyer programs are much more valuable than cash-back-like cards.  {{Link|Transferable Points}}.</li>
  
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<li>'''You'll get some other attractive benefits with the Sapphire Reserve card'''. These include airport lounge access, primary rental car insurance, and top-of-the-line travel and shopping protections.</li>
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{{Image|TransferPrograms.png|420}}
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</ul>
 
  
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The Freedom Unlimited card has no annual fee. However, the Sapphire Reserve’s annual fee is a whopping $450, and you need to have it, in order to get good value from the points you earn with the Freedom Unlimited card.  
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In general, you should go with whichever transferable point option earns you the most transferable points per dollar, as each of the programs has a decent set of airline partners. If you are planning to redeem for premium-cabin frequent flyer tickets, the ability to get good value from Ultimate Reward's other redemption options doesn't provide any added value. Membership Reward's larger number of airline partners, occasional transfer bonuses, easier points accumulation, and ability to purchase additional points (if necessary), makes it the better option.  
  
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However, this isn’t as bad as it first appears. The Sapphire Reserve provides an automatic $300 travel credit. That means that the first $300 you spend on travel each year is automatically taken off your credit card bill.  So, the total out-of-pocket cost is $150 per year. For most of our readers, airport lounge access, high reward rates, and primary rental car insurance make this money well spent. 
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All other things being equal, given a choice, our preference for these types of points is Membership Rewards, Ultimate Rewards, and then ThankYou points.
  
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{{Box|Higher reward rates are possible with bonus categories}}
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<li>'''If there is no good Ultimate Rewards option, you don't expect to use your points for premium-cabin award tickets, or you simply can't justify paying annual fees, you are usually best off with cash-back cards'''. It is hard to find opportunities to get good value from economy-class frequent flyer tickets. When airfares are high, award space is usually not available. When airfares are low, you would not be getting much value from your points. You are better off earning cash-like points that you can use to subsidize a very broad range of travel purchases, without needing to worry about finding award space, or sticking to the mainstream airlines and hotel chains.</li>
  
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Before we discuss the best general-purpose reward cards, it helps to understand how “bonus categories” work.  
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<li>'''If you don't want to hassle with savings up huge quantities of points, and trying to find the relatively rare opportunities to get good value from frequent flyer tickets, Membership Rewards and ThankYou points are worth considerably less than our base values'''. For most trips, you can only expect to get 1 - 1.25 cents per point from Membership Reward or ThankYou points, so value them accordingly. Your opportunity to get more (on coach tickets) will require patience, flexibility, and/or luck.</li>
  
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<ul class="bulletlist">
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<li>'''If you've decided to make the Amex BUSINESS Platinum card part of your core credit card collection, Membership Rewards cards become a more attractive option''' (for people who don't expect to redeem for premium-cabin seats). You can use your points at 1.54 cents each to purchase airfare on your favorite airline. {{Link|Membership Rewards}}.</li>  
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<li>'''Many reward credit cards offer higher-than-normal rewards on spending within certain categories'''. For example, one card may give bonus rewards for purchases from gas stations and supermarkets, while another card may give bonuses on travel and restaurants.</li>  
 
  
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<li>'''Chances are, that as part of building out your core credit card collection, you will naturally wind up with a card that earns bonus reward rates on travel, restaurants, and some other purchases'''. Eventually, you may even choose to expand your credit card collection to specifically include cards just for their bonus rewards. {{Link|optimize rewards}}.</li>
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{{Card|PlatinumBiz}}
  
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<li>'''Regardless, you always want to get one general-purpose card that earns a good reward rate, whenever you use it, and not just on specific categories'''. This will be your “fall back” card for any purchase where you don’t have a card that earns bonus points, or when you just want to keep things simple, and put all your charges on a single card.  It is sometimes called your card for “everyday spending”. But, we call it your “general-purpose” reward card.</li>
 
 
</ul>
 
</ul>
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{{/Box}}
 
  
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=== Who should get a different card? ===
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=== The best cards for earning bonus rewards ===
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'''The following cards are our normal recommendations for earning bonus rewards on different categories''' (in a rough priority order, which works for many people). You might already have one or two of these cards, based on their other benefits.
  
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While the Freedom Unlimited / Sapphire Reserve combination is the right solution for most people, it isn't for everyone.
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If you want to see some other options for each category, which might work better for your individual circumstances, make sure to view our “Best Options” guides.  
  
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<ul class="bulletlist">
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Also, Doctor of Credit has good set of [//www.doctorofcredit.com/credit-card-reference-pages/#Category_Spending_Bonuses reference pages], and Frequent Miler has a [//frequentmiler.boardingarea.com/best-card-category-bonuses/ webpage] that provide relatively up-to-date information on the options for different bonus categories.  
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<li>'''You might not be able to get the Freedom Unlimited and Sapphire Reserve card, due to the Chase 5/24 rule'''. Chase limits access to the Sapphire Reserve and Freedom Unlimited cards to people who have signed up for fewer than five new credit cards in the past two years. This is called the “Chase 5/24” rule, and they count every new credit card you’ve gotten, regardless of whether it came from Chase, or from another bank, and even if you are just an authorized card holder.</li>
 
  
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If you’ve signed up for more than three credit cards in the last two years, you won’t be able to sign up for both these cards, regardless of your income and credit score. You can either hold off getting any new credit cards, until you are under the limit; or you can choose an alternative general-purpose reward credit card.  
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{{List|card}}
 +
{{CardItem|PremierRewards}}
 +
'''<big>1.</big> If you are comfortable earning Membership Reward points, you are going to want the Amex Gold card'''. It earns 4x Membership Rewards at US Restaurants and on your first $25,000 of US Grocery Store spending. Assuming you don't naturally spend $25,000 per year on groceries, you can purchase gift cards (at your Supermarket) to extend the 4x Membership Reward earning rate to other businesses. There are two downsides. In order to get good value from your Membership Reward points, you need to be able to use them for frequent flyer tickets. And the annual fee is a hefty $250 pr year, although it can be partially offset by a $100 airline incidental credit, and a $10/month credit that you can use several participating restaurant chains.
 +
<br/>{{Link|Grocery Spending}}.
 +
<br/>{{Link|Restaurant Spending}}.
  
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<li>'''You might get even more value from one of the advanced credit card options'''. There are some other cards that can earn even more valuable rewards than the Freedom Unlimited / Sapphire Reserve combination. But, they each have restrictions, caveats, or complexities that make them hard to broadly recommend. Depending on your circumstances, one of these advanced options (see below) might be for you. </li>  
+
{{CardItem|SapphireReserve}}
 +
'''<big>2.</big> If you have the Sapphire Reserve card, it is the best option for travel spending, and often the best option for restaurant spending'''. If you are using the Chase Unlimited combination for your everyday spending, or you are getting the Sapphire Reserve for its valuable travel benefits, you will want to use it for your travel and overseas restaurant spending as well. For beginners, or anyone else who wants to avoid the hassles associated with redeeming for frequent flyer tickets, the Sapphire Reserve is the best option for all restaurant spending. It earns 3x Ultimate Reward points, valued at {{Value|UR|3}} cents per dollar, on these categories.
 +
<br/>{{Link|Travel Spending}}.  
 +
<br/>{{Link|Restaurant Spending}}.
  
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<li>'''You may not spend enough money to justify the Sapphire Reserve's annual fee'''.  
+
{{CardItem|Altitude}}
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If you expect to spend less than about $15,000 per year on your general-purpose reward card (and on travel and restaurant charges), the extra reward points you earn from the Freedom Unlimited / Sapphire Reserve combination may be smaller than the $150 effective annual fee. </li>  
+
'''<big>3.</big> Get the U.S. Bank Altitude Reserve card to earn 4.5% on every payment with mobile wallets, such as Apple Pay'''. Everyone can use the Altitude Reserve card to boost their rewards at many brick and mortar businesses, on purchases made through apps on your phone, and at an ever-increasing number of online stores. If you have many Samsung devices, you can earn bonus rewards from any business that uses a credit card swipe machine.  
 +
<br/>{{Link|store spending}}.
  
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If you don't get much value from the airport lounge benefit, and don't expect to use your points for premium-cabin frequent flyer tickets, you are probably better off with a cashback card instead. Keep in mind, that even if you are interested in free airport lounge access, you can receive that benefit, for years to come, by spreading out your premium credit card applications (and collecting the signup bonuses) over time.  
+
'''The Altitude Reserve is also a great option for travel purchases, for anyone who doesn't have the Sapphire Reserve or Citi Prestige cards'''. If you can't (or don't want to) get the Sapphire Reserve card, are not interested in the {{Card|CitiPrestige|only}}, or don't want to accumulate any additional ThankYou points, the Altitude Reserve makes a great option for travel spending. It earns 4.5% on a broad range of travel purchases. $400 annual fee, but an automatic $325 travel credit brings the effective annual cost down to $75. {{Link|Premium Cards}}
  
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<li>'''You may prefer to earn points that can be used for an even wider variety of travel purchases'''. You can use your Ultimate Reward points to pay for hotels, airfare, and other travel expenses through the Chase website (as well as for frequent flyer tickets and award nights). But, you can't use them to purchase hotels on other websites (where you might find lower rates), on AirBnBs, or on admissions and activities. If you earn cash-like points, you can use your points for any of things (or often anything else).</li>
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{{CardItem|Propel}}
 +
'''<big>4.</big> If you don't have the Sapphire Reserve card, and you are willing to deal with some complexity, get the Wells Fargo "combo"'''. The Wells Fargo Propel card earns 3x GoFar points on restaurants, travel, gas, and streaming services. Normally, the points are only worth 1 cent each. But, if you also have the Wells Fargo Visa Signature card, you can use your points at 1.5 cents each to purchase airfare through Wells Fargo. This raises the effective bonus reward rate to 4.5% back on these categories, and you don't have to pay an annual fee for either card. However, you can only get one Wells Fargo card every 15 months, so it take some time to put this plan into action. {{Link|restaurant spending}}. {{Link|travel spending}}. {{Link|gas spending}}.  
  
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For most people, earning Ultimate Rewards points is the better option. They can easily use up all the points they earn on worthwhile redemptions, and will generally get more value from their Ultimate Reward points, than they could earn from a cashback card. But, if you don't expect to easily use up all your Ultimate Reward points on worthwhile purchases, because you don't expect to spend enough on airfares and hotels, or because you are earning tons of points in other ways, you may want to just earn cash, or cash-like points, from your purchases.  
+
An less complicated alternative is to get the {{Card|Uber|only}}. However, it only earns 4% on restaurants and 3% on travel.
  
−
<li>'''You might want to use an everyday card that includes price and return protection'''. Some credit cards provide "price protection", which will refund the difference, if something you bought drops in price during the first few months; and "return protection", which will let you return an item to the credit card company, for a refund, if the store won't accept a return. The Chase Unlimited card does not provide either of these benefits. If price and/or return protection are important to you, you'll want to use another card, either for all of your non-bonus-category purchases, or for purchases where you are more likely to take advantage of these benefits. {{Link|purchase protections}}.</li>
+
{{CardItem|InkPreferred}}
−
</ul>
+
'''<big>5.</big> If you have a business, get a small business card that earns good rewards for office supplies, telecommunications, and/or advertising services'''. Your best options are one of the {{Card|Inkpreferred|only}}, {{Card|inkcash|only}}, the {{Card|fnbobiz|only}}, or the {{Card|SimplyCashBiz|only}}. You are likely to be still be able to get one of these, even if your business is very small, or hasn't made any money yet. {{Link|business cards}}
  
−
=== For most people, the next best alternative is a great cashback card ===
+
{{CardItem|Freedom}}
 +
'''<big>6.</big> If you have one of the Chase Sapphire cards (or the Ink Preferred), get the Chase Freedom card as well, and take advantage of its rotating categories'''. The Freedom card normally earns 5% cash back on a set of rotating categories. However, if you have a Sapphire or Ink Preferred card as well, it earn 5x Ultimate Rewards points (that can be transferred to airline and hotel partners) instead, bringing the value up to {{Value|UR|5}} cents per dollar. While this card offers an amazing reward rate, it is limited to $1,500 in spending each quarter, within a specific schedule of categories defined by Chase. If you love getting 5%+ rewards, and can deal with the rotating category system, you can get the {{Card|discover|only}}, as well. It works similarly but “only” earns the stated 5%, except during the first year, when your rewards are doubled.
 +
<br/>{{Link|rotating category}}.
  
−
There are several credit cards which give you 2% back on every purchase, and you may be able to get a card that earns even more. Other than the Chase Freedom Unlimited combo, there are no other simple solution that routinely provides more value than 2% cash back. 
+
{{CardItem|att}}
 +
'''<big>7.</big> Consider getting one or more cards that earns extra reward for your retail purchases'''. The {{Card|BlueCash|only}} earns 3% back at department stores, the {{Card|att|only}} earns either {{Value|TY|2}} cents or {{Value|TY|3}} cents per dollar at online retailers, and the {{Card|cashplus|only}} (and to a lesser extent the {{Card|Vantage|only}}, {{Card|HuntingtonVoice|only}}, and {{Card|Synovus|only}}) let you earn 5% back at your choice of different categories of stores (up to maximum of $2,000 spend per quarter). There are also rotating category cards, and individual merchant cards, that can be worthwhile for the right folks.
 +
<br/>{{Link|store spending}}.
  
−
<blockquote>
+
{{CardItem|cashplus}}
−
For most people, the next best option, after the Freedom Unlimited card, is a great cashback card.
+
'''<big>8.</big> Fill out your “quiver” with cards that optimize other categories'''.  Besides the main bonus categories discussed above, there are specific cards that earn good bonus rewards in other categories and/or earn somewhat higher rates in specific categories that were already covered.
−
</blockquote>  
 
  
−
Every alternative to a good cashback card involves extra time, effort, and/or fees, special relationships with banks; or only works for people who highly-value premium-cabin award redemptions, and can earn enough points to make those a reality. These other cards can make sense for many people, but we can’t recommend them to anyone who wants to keep things simple and flexible.  
+
For example, while the Sapphire Reserve and Citi Prestige cards offer the best rates on a broad set of travel purchases, the American Express Platinum card earns a higher rate on airfare. If you buy enough airplane tickets, it may be worthwhile to use the Platinum card for airfare purchases, and one of the other cards for your other travel purchases. 
 +
<br/>{{Link|uncommon categories}}
  
−
{{ImageX|FlyingCash.jpg|600}}
+
{{/List|card}}
  
 +
{{Box|Earning More Value from Many Chase and Citibank Cards}}
 
<ul class="bulletlist">
 
<ul class="bulletlist">
−
<li>'''If you are going to spend MORE than $12,000 per year on your general-purpose reward card, you should try to get the Alliant Cashback Visa card'''. It earns 2.5% cash back with a $59 annual fee, and earns 3% cash back during the first year. Getting this card isn’t completely straightforward. If you aren’t already an Alliant credit union member, you need to make a $10 donation to Foster Care for Success to join. And if you’ve opened too many credit cards (which hopefully isn’t a problem), they may deny your application.</li>
+
<li>Some Chase and Citibank cards earn less-flexible reward points, which can only be redeemed for 1 cent each, on things like gift cards.</li>
−
{{Card|alliant|guide}}
+
 
 +
<li>However, if you combine these cards with one of Chase’s or Citibank’s premium cards, you can redeem these points for full value—transferring them to airline or hotel programs, or getting a higher-than-normal value when you use them to purchase travel through the credit card company’s travel portal.</li>
 +
 
 +
<li>Most often, the credit card company will advertise these cards as x% cash-back cards. But, the real earning rate can be significantly higher.</li>
 +
 
 +
<li>For example, the points you earn from the Chase Freedom card are usually worth 1 cent each, but if you have a Sapphire or Ink Reserve card, you can convert them to 1 frequent flyer mile instead. Or, the points you earn from online purchases with the Citibank AT&T Access card are normally worth 2 cents per dollar, but if you have the Citi Premier or Prestige card, you can get use your points to get 2 airline miles instead.</li>
 +
</ul>
 +
{{/Box}}
  
−
<li>'''If you are going to spend LESS than $12,000 on your general-purpose reward card, you should get the PayPal Cashback card'''. It gives you 2% cash back, with no annual fee, and no foreign transaction fees. If you are only spending this much, it isn’t worth the $59 per year, to earn the extra .5% in rewards from the Alliant card. In addition, the PayPal cards comes with price and return protection, which isn't available on the Alliant card. Just make sure you’re the type of person who will make the extra effort to take advantage of these protection benefits, before you give up higher up-front rewards. {{Link|purchase protections}}.</li>
+
=== Reward Combos ===
−
{{Card|Paypal|guide}}
 
  
−
The other good no-annual-fee options are the {{Card|DoubleCash|only}} and the {{Card|Fidelity|only}}. The reason that we recommend the PayPal card is that it doesn't have a foreign transaction fee, and both of these cards do. Some people might prefer the Double Cash card, because it comes with slightly better extended warranty and price protection benefits, and they don't expect to use the card very often for overseas purchases. The Fidelity card only has a 1% foreign transaction fee (versus the Double Cash's 3% fee), but it comes with weaker purchase protections.  
+
If you want to concentrate the types of points you earn, you can put together collections of cards in the same family.  
  
−
<li>'''Be careful when you predict how much money you will spend per year'''. If you take our advice, and start collecting credit card signup bonuses, much of your credit card spending will be focused on meeting the initial spending requirements on your new cards. If you acquire cards that earn bonus rewards on other categories, there will be fewer purchases left over, where you use your general-purpose card. You might find yourself spending less than you expected, and be better off with a no-annual-fee card.</li>
+
{{List|Label}}
  
−
<li>'''If you highly value international business and first-class tickets, a transferable points card is always better'''. No cash-back or fixed-value card can provide as much value as you can get from redeeming your points for business and first-class frequent flyer tickets. You may not always be able to find award space, and it will require a lot of points for each ticket, but you’ll eventually be able to redeem your points for massive value per point. {{Link|Transferable Points}}.</li>
+
{{Label|Ultimate Rewards}}
 +
Start with the '''{{Link|general purpose|Chase Unlimited combo}}''':
  
−
If you can't get the Freedom Unlimited combo, get one of the advanced options that earns Membership Reward points.  
+
<ul class="bulletlist">
 +
*3x on Restaurants.
 +
*3x on Travel.
 +
*1.5x on everything else.
 +
</ul>
  
−
<li>'''While these are the best combinations of cashback rate and annual fees for most people, you may be able to do even better with one of our advanced options'''.  
+
Add some combination of the following three cards to bump up the Ultimate Reward points you earn.
 +
 
 +
<ul class="bulletlist">
 +
*5x on a rotating set of categories with the '''{{Card|Freedom|only}}''' (Capped at $1,500 per quarter).
 +
*5x on office supply stores and telecommunication services with the '''{{Card|InkCash|only}}''' or 3x with the '''{{Card|InkPreferred|only}}'''.
 +
*3x on Advertising purchases (in select media) with the '''{{Card|InkPreferred|only}}'''.
 +
*2x on Gas with the '''{{Card|InkCash|only}}'''.
 
</ul>
 
</ul>
  
−
=== Advanced options ===
+
There are no Ultimate Reward cards that provide bonus rewards for Groceries. Your best bet is to combine it with a the '''{{Card|BlueCash|only}}''' for 6% back on groceries, and 3% back on gas.
  
−
For most people, the best options are to earn 1.5x Ultimate Reward points with the Freedom Unlimited combo, 2.5% cash-back with the Alliant Card, or 2% cash-back with one of the no-annual fee options.  
+
{{Label|Membership Rewards}}
 +
If you are willing and able to use a business card, start with the '''{{Card|BlueBiz|only}}''' for 2x Membership Rewards on any purchase. Otherwise, use the '''{{Card|EverydayPreferred|only}}''' (and make sure to make 30 transactions per month) to earn 1.5x Membership Reward points on everyday purchases, and 4.5x on your first $6,000 of grocery store purchases, and 3x on gas.  
  
−
'''However, some people can earn even more valuable rewards with other general-purpose cards.''' Click to view our guide:
+
Then get the '''{{Card|PremierRewards|only}}'''.  You'll earn 4x Membership Reward points at US Restaurants and on your first $25,000 worth of US grocery store spending. If you are willing to make the extra effort, use any extra grocery store capacity to purchase gift cards and use them at other locations.
  
−
<center>
+
If you can justify the annual fee, leverage the '''{{Card|PlatinumCard|only}}''' for
−
{{tile|advanced everyday}}
+
5x on Airfare and pre-paid hotels booked through Amex Travel.
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</center>
 
  
−
{{Box|Most Likely Candidates}}
+
You can bump up your rewards with the '''{{Card|GoldBiz|only}}'''.
  
 
<ul class="bulletlist">
 
<ul class="bulletlist">
−
<li>'''If you are eligible for a business card, comfortable to use it for your personal purchases, and willing to redeem all your points for frequent flyer tickets, the most valuable general-purpose reward card is almost certainly the Amex Blue for Business Card'''. If you are committed to using your points for frequent flyer tickets, earning 2x Membership Reward points is better than earning 1.5x Ultimate Reward points. Just remember, that with Membership Reward points, you don't typically have good options for other types of redemptions.</li>
+
*3x on one of: shipping, advertising (in select media), computer purchases, airfare
 +
*2x on the other categories
 +
</ul>
  
−
{{Card|BlueBiz}}
+
{{Label|Cash}}
 +
Start with one of '''{{Link|cash back}}''' for 2-3% on any non-bonus category purchases OR use the '''{{Link|general purpose|Chase Unlimited Combo}}''' for a minimum of 2.25% back on non-bonus categories and 4.5% back on Restaurants and Travel.
  
−
<li>'''If you are eligible for a business card, comfortable to use it for your personal purchases, and want to avoid being locked into frequent flyer redemptions, you can get the Ink Unlimited card, instead of the Freedom Unlimited card'''. Both cards earn the same 1.5x Ultimate Reward points on every purchase, but the Ink Unlimited card has a better signup bonus, and some extra benefits.  
+
Get the '''{{Card|Altitude|only}}''' to earn 4.5% on Travel and Digital Wallet Purchases. This provides less incremental value if you are already getting 3x Ultimate Rewards on travel from the Sapphire Reserve card.
  
−
{{Card|InkUnlimited}}
+
Augment your rewards with one or more of the following cards:
  
−
<li>'''If you highly value premium-cabin award tickets, can earn enough points to redeem for them, and have the patience to find award space, you are always better off earning transferable points, rather than cash back'''. If you can't get the Sapphire Reserve / Unlimited combo, or use the Blue for Business Card, you should probably use the Amex EveryDay Preferred card. </li>
+
<ul class="bulletlist">
 +
*4.5% back on Restaurants, Travel, Gas and Streaming services with the '''[[Wells Fargo Reward Credit Cards|Wells Fargo Combo]]'''. Alternatively, 4% back on Restaurants and Travel with the '''{{Card|Uber|only}}'''.
 +
*6% back on Groceries (capped at $6,000 per year), 3% back at Department Stores, and 3% back on Gas with the '''{{Card|BlueCash|only}}'''.
 +
*5% on Amazon with the '''{{Card|Amazon|only}}'''.
 +
*5% back on rotating set of categories (10% in the first year) with the '''{{Card|Discover|only}}''' or '''{{Card|Freedom|only}}''' (the Freedom card earns a minimum of 7.5% back if you are using the Chase Unlimited combo).
 +
*3-5% on your choice of additional categories, with one or more '''{{Link|Uncommon Categories|"pick your category" cards}}'''.
 +
*5% back on office supply, telecommunications, and other business expenses with the '''{{Card|fnbobiz|only}}''' or '''{{Card|simplycashbiz|only}}'''.
 +
*5% back on Gas with one of '''{{Link|Gas Spending|several cards}}''', if getting a card for the extra 2% (or extra .5% at Gas Stations that accept mobile wallet payments) is worth it.  
  
−
{{Card|EverydayPreferred}}
+
</ul>
  
−
In order to earn enough points to make this card worthwhile, you'll need to make sure to use it for more than 30 purchases every month. If that doesn't seem likely, we've got some tricks that can help. {{Link|30 charges}}.
+
{{/List|Logo}}
  
−
<li>'''If you have $100,000 in investment or retirement assets that you would be willing to manage through Merrill Lynch, you can earn 2.625% cash back with the Bank of America Travel and Premium credit cards'''. That level of assets qualifies you for Bank of America "Platinum Honors" status, which gives you a 75% bonus for the rewards you earn from some Bank of America cards. The bonus boosts the earning rate from the Travel Rewards and Premium Rewards card from 1.5 cents per dollar to 2.625 cents per dollar (which is the highest long-term cash back rate available from any card). If you have assets at another broker, you can usually transfer them to a Merrill Edge account, and manage them there (at little or no additional costs), to qualify for the higher reward rate.</li>
+
=== Increasing your reward rate with gift cards (advanced) ===
  
−
{{Card|BOAPremium|guide}}
+
'''The best reward rates differ wildly between categories'''. For example, the best regular reward rate for department stores is 3 cents per dollar, and the best reward rate for restaurants is about 6 cents per dollar, but it is possible to earn up to about 8 cents per dollar at grocery stores, and 9 cents per dollar at Office supply stores.
  
−
<li>'''If you are willing to sign up for a new account each year, you can get a continuous 3% cash back with the Discover Miles card'''. It earns 1.5% cash back, but gives you double the points at the end of your first year. The catch is that you'll have to get a new card ever year (and use up an credit card application slot) to maintain access to this effective 3% rate.</li>
+
Furthermore, since most of the cards with the highest reward rates have annual fees, or other restrictions, the rates you can get with your actual collection of cards may be different.  
  
−
{{Card|DiscoverMiles|guide}}
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{{ImageX|GiftCardRack2.jpg|360}}
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</ul>
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{{/Box}}
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'''One way to increase the rewards from your spending is to buy gift cards at a merchant where you earn high reward rates, and then use the gift cards at a merchant that offers lower reward rates'''. For example, if you can get 10 cents per dollar for gift cards at Office supply stores, you'll earn higher rewards by using those gift cards, rather than one of your other credit cards, whenever you can. Of course, buying, activating, carrying, and using gift cards requires extra effort.
  
 
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Revision as of 13:11, 4 November 2018

  Credit Card Reference

ChooseCard.jpg

The easiest way to earn free travel is to get a credit card that earns rewards points on your purchases; and then use that card, rather than cash or check, whenever you can. Over the course of a year, you’ll effortlessly earn thousands of points you can use for free flights and hotel rooms. By simply choosing the right general-purpose rewards card, you should be earning at least 2% in rewards, on all your credit card spending.

However, you can do even better. Many credit cards offer higher-than-normal reward rates for spending within certain categories. For example, one card may give bonus rewards for purchases from gas stations and supermarkets, while another card may give bonuses on travel and restaurants.

By using different cards for different types of purchases, you can earn more reward points (or cash back) on your spending—with rewards rates as high as 10%!

Unless you have problems with credit, you don’t need to worry about getting a handful of new credit cards, just to earn more rewards. Getting a few additional cards won’t trash your credit score—it may just improve it. For more information, and general tips, see our Credit Cards 101 article.


Jump to


Using different cards, for different purchases, is a bit of hassle

  • To be fair, optimizing your rewards, by using different credit cards, makes your life more complicated. It is simpler to carry around a single general-purpose reward card, and use it for all your purchases; than it is to get, carry, and choose from a collection of different reward cards.
  • Not everyone wants to bother, and we don’t blame them.
  • However, many other people (and some of us) get immense satisfaction about getting the highest possible rewards from their spending, and wouldn’t dream of “only” earning 2 - 2.5% on a purchase, when they could be earning 3 - 5%, or even more. It is not just the extra points—it is the extra sense of satisfaction from taking your game to the next level.
  • Within the “points hobby”, this is a famous source of tension between spouses—one spouse gets frustrated, when the other spouse doesn’t wind up using the “right” credit card for different purchases. Don’t let it bother you. If you or your spouse is not interested in having one more thing to think about, stick to a great general-purpose rewards card.

If you want to maximize your rewards, build up a collection of cards, and use the right card for each purchase. If you are truly dedicated, you can build up a portfolio of more than a dozen cards, to absolutely maximize the rewards on all your purchases.

Tips for getting reward cards for different spending categories

The right set of cards to get, and the order to get them, depends on your individual circumstances.

  • There is no single card that earns great bonus rewards in every category. To optimize your rewards, you’ll need to get a set of cards, and use a different card for each category. However, you can typically get one card that is good for both travel and restaurants, and another card that is good for groceries and gas.
  • Focus on the cards that earn bonus rewards for the categories where you spend the most money. If you mostly go out to eat, a card that earns bonus rewards on restaurants is going to be more valuable than one that earns bonus rewards on groceries, and vise versa.
    • Restaurant1.jpg
  • Don’t focus on the NUMBER of points earned, focus on the VALUE of the points. The value of different types of points and miles varies widely. On one end of the scale, credit card reward points (like Ultimate Rewards) are usually worth close-to, or more than, 2 cents each. On the other end of the scale, some hotel points, like Hilton's, are only worth .4-.5 cents each.

    • As an example, the Hilton card’s 6x rewards on groceries sounds a lot better than the Amex’s Premier Reward’s 2x rewards. However, the Hilton points are worth around 2.7 cents per dollar, and the Membership Rewards points are worth around 3 cents per dollar. So, the 3x Membership Reward points is actually the more valuable reward rate. See more detail below.

  • To determine whether a card is worthwhile, you need to compare the extra points you expect to earn, to the card’s annual fee. To figure out the value you can get from a card, you need to take the amount you expect to spend, and multiply it by the extra points that you will earn, above-and-beyond the points you would have earned by just using your general-purpose reward card; and then subtract out the annual fee you need to pay to use the card.

    • BlueCashPreferred.png

    An example may make this clearer. The Amex Blue Preferred card offers an amazing 6% cash back on your first $6,000 worth of supermarket spending. If you spend $5,000 on groceries each year, you’ll earn $300 cash back. But the real added value of the card is lower. If you already have the Chase Unlimited combo, you could have used your Unlimited card to earn 7,500 Ultimate Rewards points on those same amount of purchases. If you value the Ultimate Reward points at 1.7 cents each, that works out to $130. The Blue Cash card only earns $170 in additional rewards. And, in order to earn those extra rewards, you’ll need to pay $95 per year, for the additional card.

    The final net benefit works out to $75 per year, not the $300 you might earn in rewards. If you spend less on groceries, you will earn less in extra rewards. If you spend the full $6,000, you can earn slightly more.

    When you are determining whether it makes sense to get a card for ongoing use, we recommend ignoring any waiver of the first-year’s annual fee . You are focusing on whether these cards make sense for the long run. The waived annual fee, is essentially just part of the signup bonus for the card, and doesn't affect the long term value proposition.

  • If you are “collecting” signup bonuses, you should generally postpone signing up for cards that just earn higher reward rates. The easiest way to build up lots and lots of points and miles is by collecting signup bonuses for new credit cards. If you follow this strategy, much of your credit card spending will be directed towards meeting the Initial spending requirements of your new cards. As a result, you will have less spending leftover. to put on the cards that earn bonus reward rates; the amount of extra value you’ll get from these cards will be low; and it is less likely that you can justify any additional annual fees. Receive Hundreds of Thousands of Points by Signing Up for Credit Cards.

    • Even more importantly, there is a limit to how many credit cards you can collect during any span of time. You’ll get more value from focusing on good signup bonuses, rather than on increasing the rewards you earn directly from your spending. Concentrate on signup bonuses first, and worry about optimizing your reward rates later.

  • Small business credit cards expand your options for earning bonus rewards. If you have any type of small-business (even if you also have a full-time job and you haven’t made any money yet), you are eligible for small-business credit cards. Many of these cards offer bonus rewards on spending categories that aren’t often available from personal cards—such as purchases from office supply stores or telecom providers. Technically, you aren’t supposed to use these cards for personal expenses, but many people do with no problems. If you are eligible for these cards, and willing to use them for your spending, you’ll be able to increase the rewards even further. Unlock Extra Reward Points with Business Credit Cards.

    • InkPreferred.png

  • You only need to pay attention to bonus rewards that are better than 2% back. Because you should be earning 2% or more with your general-purpose card, earning 2% on a bonus category is not particularly enticing. Only pay attention to cards that have category bonuses of 3% or more. Just remember, that depending on the type of points, a card that only earns 2x points, may be earning more than 3% in value.

    • DoubleCash.jpg

What type of points to focus on?

Before you can determine which cards to get for different spending categories, you need to make some decisions about which types of points to earn.

We display a "value" for the reward rate of every card, but that is calculated from a "base" value per point. But, depending on your plans and situation, these points can be much more valuable, or much less valuable, than the base values we use. The "real" value per point differs for each person, depending on how they expect to use their points, how much they spend each year, and how many points they already have. How Much are Points Worth?

  • It is hard to go wrong with cards that earn Ultimate Reward points. If you have the Chase Sapphire Reserve card, you can use your points (like cash) to purchase a broad range of travel through the Chase website at 1.5 cents per point. You can easily get more value by using your points with Hyatt award nights and less-expensive Southwest Airlines tickets. And you leave open the possibility of getting much more value per point by transferring your points to one of Ultimate Reward's airline partners to use for frequent flyer tickets. Ultimate Rewards Guide.

    • It is pretty safe to assume that you can easily get at least 1.5 - 2 cents in value from your Ultimate Reward points. As a result, if there is an Ultimate Rewards card that has good bonus category rates, it will generally earn more valuable rewards than other cards. The main obstacle is whether you are blocked from getting the Sapphire Reserve, or some of the other cards, by the Chase 5/24 rule. Dealing with the Chase 5/24 Rule.

  • If you highly value business and first class award tickets, and have the ability and the patience to build up large quantities of points and find available award space, you should always try to earn as many "transferable" points as you can. You'll typically get 3 - 10 cents per point when you use your points to book business and first class frequent flyer tickets, so flexible credit card points that can be transferred to multiple frequent flyer programs are much more valuable than cash-back-like cards. Introduction to 'Transferable' Reward Points.
    • TransferPrograms.png

    In general, you should go with whichever transferable point option earns you the most transferable points per dollar, as each of the programs has a decent set of airline partners. If you are planning to redeem for premium-cabin frequent flyer tickets, the ability to get good value from Ultimate Reward's other redemption options doesn't provide any added value. Membership Reward's larger number of airline partners, occasional transfer bonuses, easier points accumulation, and ability to purchase additional points (if necessary), makes it the better option.

    All other things being equal, given a choice, our preference for these types of points is Membership Rewards, Ultimate Rewards, and then ThankYou points.

  • If there is no good Ultimate Rewards option, you don't expect to use your points for premium-cabin award tickets, or you simply can't justify paying annual fees, you are usually best off with cash-back cards. It is hard to find opportunities to get good value from economy-class frequent flyer tickets. When airfares are high, award space is usually not available. When airfares are low, you would not be getting much value from your points. You are better off earning cash-like points that you can use to subsidize a very broad range of travel purchases, without needing to worry about finding award space, or sticking to the mainstream airlines and hotel chains.
  • If you don't want to hassle with savings up huge quantities of points, and trying to find the relatively rare opportunities to get good value from frequent flyer tickets, Membership Rewards and ThankYou points are worth considerably less than our base values. For most trips, you can only expect to get 1 - 1.25 cents per point from Membership Reward or ThankYou points, so value them accordingly. Your opportunity to get more (on coach tickets) will require patience, flexibility, and/or luck.
  • If you've decided to make the Amex BUSINESS Platinum card part of your core credit card collection, Membership Rewards cards become a more attractive option (for people who don't expect to redeem for premium-cabin seats). You can use your points at 1.54 cents each to purchase airfare on your favorite airline. Membership Rewards Guide.

    • PlatinumBiz.png

The best cards for earning bonus rewards

The following cards are our normal recommendations for earning bonus rewards on different categories (in a rough priority order, which works for many people). You might already have one or two of these cards, based on their other benefits.

If you want to see some other options for each category, which might work better for your individual circumstances, make sure to view our “Best Options” guides.

Also, Doctor of Credit has good set of reference pages, and Frequent Miler has a webpage that provide relatively up-to-date information on the options for different bonus categories.

1. If you are comfortable earning Membership Reward points, you are going to want the Amex Gold card. It earns 4x Membership Rewards at US Restaurants and on your first $25,000 of US Grocery Store spending. Assuming you don't naturally spend $25,000 per year on groceries, you can purchase gift cards (at your Supermarket) to extend the 4x Membership Reward earning rate to other businesses. There are two downsides. In order to get good value from your Membership Reward points, you need to be able to use them for frequent flyer tickets. And the annual fee is a hefty $250 pr year, although it can be partially offset by a $100 airline incidental credit, and a $10/month credit that you can use several participating restaurant chains.
Best Credit Cards for Grocery Spending.
Best Credit Cards for Restaurant Spending.

2. If you have the Sapphire Reserve card, it is the best option for travel spending, and often the best option for restaurant spending. If you are using the Chase Unlimited combination for your everyday spending, or you are getting the Sapphire Reserve for its valuable travel benefits, you will want to use it for your travel and overseas restaurant spending as well. For beginners, or anyone else who wants to avoid the hassles associated with redeeming for frequent flyer tickets, the Sapphire Reserve is the best option for all restaurant spending. It earns 3x Ultimate Reward points, valued at 5.1 cents per dollar, on these categories.
Best Credit Cards for Travel Spending.
Best Credit Cards for Restaurant Spending.

3. Get the U.S. Bank Altitude Reserve card to earn 4.5% on every payment with mobile wallets, such as Apple Pay. Everyone can use the Altitude Reserve card to boost their rewards at many brick and mortar businesses, on purchases made through apps on your phone, and at an ever-increasing number of online stores. If you have many Samsung devices, you can earn bonus rewards from any business that uses a credit card swipe machine.
Best Credit Cards for Retail Purchases.

The Altitude Reserve is also a great option for travel purchases, for anyone who doesn't have the Sapphire Reserve or Citi Prestige cards. If you can't (or don't want to) get the Sapphire Reserve card, are not interested in the Citi Prestige Card, or don't want to accumulate any additional ThankYou points, the Altitude Reserve makes a great option for travel spending. It earns 4.5% on a broad range of travel purchases. $400 annual fee, but an automatic $325 travel credit brings the effective annual cost down to $75. Which Premium Reward Card is Right for You?

4. If you don't have the Sapphire Reserve card, and you are willing to deal with some complexity, get the Wells Fargo "combo". The Wells Fargo Propel card earns 3x GoFar points on restaurants, travel, gas, and streaming services. Normally, the points are only worth 1 cent each. But, if you also have the Wells Fargo Visa Signature card, you can use your points at 1.5 cents each to purchase airfare through Wells Fargo. This raises the effective bonus reward rate to 4.5% back on these categories, and you don't have to pay an annual fee for either card. However, you can only get one Wells Fargo card every 15 months, so it take some time to put this plan into action. Best Credit Cards for Restaurant Spending. Best Credit Cards for Travel Spending. Best Credit Cards for Gas Spending.

An less complicated alternative is to get the Uber Credit Card. However, it only earns 4% on restaurants and 3% on travel.

5. If you have a business, get a small business card that earns good rewards for office supplies, telecommunications, and/or advertising services. Your best options are one of the Ink Preferred Card, Ink Cash Card, the First National Bank Business Edition Card, or the Amex SimplyCash Business Card. You are likely to be still be able to get one of these, even if your business is very small, or hasn't made any money yet. Unlock Extra Reward Points with Business Credit Cards

6. If you have one of the Chase Sapphire cards (or the Ink Preferred), get the Chase Freedom card as well, and take advantage of its rotating categories. The Freedom card normally earns 5% cash back on a set of rotating categories. However, if you have a Sapphire or Ink Preferred card as well, it earn 5x Ultimate Rewards points (that can be transferred to airline and hotel partners) instead, bringing the value up to 8.5 cents per dollar. While this card offers an amazing reward rate, it is limited to $1,500 in spending each quarter, within a specific schedule of categories defined by Chase. If you love getting 5%+ rewards, and can deal with the rotating category system, you can get the Discover it Card, as well. It works similarly but “only” earns the stated 5%, except during the first year, when your rewards are doubled.
Earn 5-10% in Rewards with Rotating Category Cards.

7. Consider getting one or more cards that earns extra reward for your retail purchases. The Blue Cash Preferred Card earns 3% back at department stores, the AT&T Access Card earns either 3 cents or 4.5 cents per dollar at online retailers, and the U.S. Bank Cash+ Card (and to a lesser extent the VantageWest Connect Credit Card, Huntington Voice Credit Card, and Synovus Travel Rewards Card) let you earn 5% back at your choice of different categories of stores (up to maximum of $2,000 spend per quarter). There are also rotating category cards, and individual merchant cards, that can be worthwhile for the right folks.
Best Credit Cards for Retail Purchases.

8. Fill out your “quiver” with cards that optimize other categories.  Besides the main bonus categories discussed above, there are specific cards that earn good bonus rewards in other categories and/or earn somewhat higher rates in specific categories that were already covered.

For example, while the Sapphire Reserve and Citi Prestige cards offer the best rates on a broad set of travel purchases, the American Express Platinum card earns a higher rate on airfare. If you buy enough airplane tickets, it may be worthwhile to use the Platinum card for airfare purchases, and one of the other cards for your other travel purchases. 
Credit Cards that Offer Bonus Rewards on Less Common Categories

Earning More Value from Many Chase and Citibank Cards
  • Some Chase and Citibank cards earn less-flexible reward points, which can only be redeemed for 1 cent each, on things like gift cards.
  • However, if you combine these cards with one of Chase’s or Citibank’s premium cards, you can redeem these points for full value—transferring them to airline or hotel programs, or getting a higher-than-normal value when you use them to purchase travel through the credit card company’s travel portal.
  • Most often, the credit card company will advertise these cards as x% cash-back cards. But, the real earning rate can be significantly higher.
  • For example, the points you earn from the Chase Freedom card are usually worth 1 cent each, but if you have a Sapphire or Ink Reserve card, you can convert them to 1 frequent flyer mile instead. Or, the points you earn from online purchases with the Citibank AT&T Access card are normally worth 2 cents per dollar, but if you have the Citi Premier or Prestige card, you can get use your points to get 2 airline miles instead.

Reward Combos

If you want to concentrate the types of points you earn, you can put together collections of cards in the same family.

Ultimate Rewards

Start with the Chase Unlimited combo:

    • 3x on Restaurants.
    • 3x on Travel.
    • 1.5x on everything else.

Add some combination of the following three cards to bump up the Ultimate Reward points you earn.

There are no Ultimate Reward cards that provide bonus rewards for Groceries. Your best bet is to combine it with a the Blue Cash Preferred Card for 6% back on groceries, and 3% back on gas.

Membership Rewards

If you are willing and able to use a business card, start with the Blue Business Plus Card for 2x Membership Rewards on any purchase. Otherwise, use the Everyday Preferred Card (and make sure to make 30 transactions per month) to earn 1.5x Membership Reward points on everyday purchases, and 4.5x on your first $6,000 of grocery store purchases, and 3x on gas.

Then get the Amex Gold Card. You'll earn 4x Membership Reward points at US Restaurants and on your first $25,000 worth of US grocery store spending. If you are willing to make the extra effort, use any extra grocery store capacity to purchase gift cards and use them at other locations.

If you can justify the annual fee, leverage the Amex Platinum Card for 5x on Airfare and pre-paid hotels booked through Amex Travel.

You can bump up your rewards with the Amex Business Gold Rewards Card.

    • 3x on one of: shipping, advertising (in select media), computer purchases, airfare
    • 2x on the other categories
Cash

Start with one of Lua error in Module:Link at line 366: attempt to index field '?' (a nil value). for 2-3% on any non-bonus category purchases OR use the Chase Unlimited Combo for a minimum of 2.25% back on non-bonus categories and 4.5% back on Restaurants and Travel.

Get the Altitude Reserve Card to earn 4.5% on Travel and Digital Wallet Purchases. This provides less incremental value if you are already getting 3x Ultimate Rewards on travel from the Sapphire Reserve card.

Augment your rewards with one or more of the following cards:

Increasing your reward rate with gift cards (advanced)

The best reward rates differ wildly between categories. For example, the best regular reward rate for department stores is 3 cents per dollar, and the best reward rate for restaurants is about 6 cents per dollar, but it is possible to earn up to about 8 cents per dollar at grocery stores, and 9 cents per dollar at Office supply stores.

Furthermore, since most of the cards with the highest reward rates have annual fees, or other restrictions, the rates you can get with your actual collection of cards may be different.

GiftCardRack2.jpg

One way to increase the rewards from your spending is to buy gift cards at a merchant where you earn high reward rates, and then use the gift cards at a merchant that offers lower reward rates. For example, if you can get 10 cents per dollar for gift cards at Office supply stores, you'll earn higher rewards by using those gift cards, rather than one of your other credit cards, whenever you can. Of course, buying, activating, carrying, and using gift cards requires extra effort.




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