Difference between revisions of "Optimize credit card rewards on your purchases"

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{{DISPLAYTITLE:{{Title|optimize rewards}} (2019)}}
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{{DISPLAYTITLE:{{Title|optimize rewards}} (2021)}}
 
{{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.}}
 
{{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.}}
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{{Page|article|Card Strategies}}  
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{{Page|article|Earn Points|Card Strategies}}  
  
 
{{ImageX|ChooseCard.jpg|full}}  
 
{{ImageX|ChooseCard.jpg|full}}  
  
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The most straightforward way to earn free travel is to get a credit card that offers a great reward rate on your purchases; and 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.  
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The most straightforward way to earn free travel is to get a credit card that offers a great reward rate on your purchases and 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.  
  
 
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.  
 
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.  
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</blockquote>  
 
</blockquote>  
  
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Unless you have problems with credit, you don’t need to worry about getting a handful of new credit cards. 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.
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Unless you have problems with credit, you don’t need to worry about getting a handful of new credit cards. 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}}
 
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*[[#The best cards for increasing your rewards|The best cards for increasing your rewards]]
 
*[[#The best cards for increasing your rewards|The best cards for increasing your rewards]]
 
*[[#Best options for each category|Best options for each category]]
 
*[[#Best options for each category|Best options for each category]]
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*[[#Advanced reward optimization options|Advanced options]]
 
 
{{/TOC}}
 
{{/TOC}}
  
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<ul class="bulletlist">
 
<ul class="bulletlist">
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<li>'''Optimizing your rewards, by using different credit cards for different purchases, makes life more complicated'''. It is simpler to carry around a single card and use it for all your purchases, than it is to get, carry, and choose from a collection of different reward cards.</li>  
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<li>'''Optimizing your rewards, by using different credit cards for different purchases, makes life more complicated'''. It is simpler to just carry around a single card and use it for all your purchases, rather than getting, carrying, and choosing from a collection of different credit cards.</li>  
  
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<li>'''You can earn a lot more points by focusing on signup bonuses, rather than optimizing your ongoing reward rates'''. Unless you have some means of spending a lot of money, the amount of extra reward points you can earn by using an optimized set of cards (over the course of a year) is often smaller than the signup bonus for just one or two cards. And, if you choose to focus on signup bonuses, most of your spending will be focused on meeting initial spending requirements, and you'll have less opportunity to take advantage of better reward rates. {{Link|signup bonus intro}}.</li>
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<li>'''You can earn a lot more points by collecting signup bonuses, rather than optimizing your ongoing reward rates'''. Unless you have some means of spending a lot of money, the amount of extra reward points you can earn by using an optimized set of cards (over the course of a year) is often smaller than the signup bonus for just one or two cards. For example, if would be able to spend $20,000 per year in bonus categories, and you earned an average of an extra 3% using bonus category rewards, you would earn an extra $600 per year—about the same as one good signup bonus.</li>
  
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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 by using those slots to get good signup bonuses (and ongoing travel benefits) rather than getting cards simply for their high reward rates. Concentrate on signup bonuses first, and worry about optimizing your reward rates later.
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Furthermore, if you choose to focus on signup bonuses, most of your spending will be focused on meeting initial spending requirements and you'll have less opportunity to take advantage of optimized reward rates. {{Link|signup intro}}.
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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 by using those slots to get good signup bonuses (and ongoing travel benefits) rather than getting cards simply for their high reward rates. Ideally, concentrate on signup bonuses first and worry about optimizing your reward rates later.
  
 
<li>'''Not everyone wants to bother using a bunch of different cards for different purchases, and we don’t blame them'''.</li>  
 
<li>'''Not everyone wants to bother using a bunch of different cards for different purchases, and we don’t blame them'''.</li>  
  
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<li>'''However, many other people (and some of us) get immense satisfaction about earning 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. If you are hardcore, you can often find ways to generate additional spending, so that you can meet the initial spending requirements for as many cards as you can, while still collecting bonus rewards with your best cards.</li>  
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<li>'''However, many other people (and some of us) get immense satisfaction about earning 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. If you are hardcore, you can often find ways to generate additional spending, so that you can meet the initial spending requirements for as many cards as you can, while still collecting bonus rewards with your best cards.</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 worry about, stick to a great general purpose rewards card (or maybe a two-card strategy like the Chase Unlimited combo).</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 worry about, stick to a great general purpose rewards card (or maybe a two-card strategy like the Chase Unlimited combo).</li>  
 
</ul>
 
</ul>
  
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<ul class="bulletlist">
 
<ul class="bulletlist">
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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>
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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 both groceries and gas.</li>
  
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<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>  
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<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 vice versa.</li>  
  
 
{{ImageX|Restaurant1.jpg}}
 
{{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>'''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 at least 1.5 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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As an example, the Hilton Ascend's 6x rewards on groceries sounds a lot better than the Amex’s Everyday's base 2x rewards. However, 6x Hilton points are worth around 2.7 cents per dollar, and 2x Membership Rewards points are worth around 3 cents per dollar. So, the 2x Membership Reward points is actually the more valuable reward rate (for most people).
 
  
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<li>'''To determine whether a card is worthwhile, you need to determine whether the extra points you'll earn justifies the card’s annual fee'''. To figure out the value you expect to 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. Then you need to  subtract the card's annual fee.</li>  
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<li>'''To determine whether a card is worthwhile, you need to determine whether the extra points you'll earn justifies the card’s annual fee'''. To figure out the value you expect to 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. Then you need to  subtract the card's annual fee.</li>  
  
 
{{Card|BlueCash}}
 
{{Card|BlueCash}}
  
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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 the same $5,000 of groceries. If you value the Ultimate Reward points at {{Value|UR}} cents each, that works out to {{Value|UR|7500}}. The Blue Preferred card only earns $170 in additional rewards. And, in order to earn those extra rewards, you’ll need to pay the Blue Preferred card's $95 annual fee.  
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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 the same $5,000 of groceries. If you value the Ultimate Rewards points at {{Value|UR}} cents each, that works out to {{Value|UR|7500}}. The Blue Preferred Card only earns $170 in extra rewards. And, to earn those extra rewards, you’ll need to pay the Blue Preferred Card's $95 annual fee.  
  
 
The final net benefit works out to $75 per year, not the $300 of expected rewards. If you spend less on groceries, you'll earn less. If you spend the full $6,000, you can earn slightly more.  
 
The final net benefit works out to $75 per year, not the $300 of expected rewards. If you spend less on groceries, you'll earn less. If you spend the full $6,000, you can earn slightly more.  
  
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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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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 usually 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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<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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<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 valuable. Only pay attention to cards that have category bonuses worth 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>  
  
 
{{Card|DoubleCash}}
 
{{Card|DoubleCash}}
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<li>'''The type of reward points you should earn depends on how you plan to use your points'''. We assign a "value" for each type of point based on a range of typical travelers. Depending on your plans and situation, these points can be much more valuable or much less valuable than our base values. {{Link|point values}}.</li>
 
<li>'''The type of reward points you should earn depends on how you plan to use your points'''. We assign a "value" for each type of point based on a range of typical travelers. Depending on your plans and situation, these points can be much more valuable or much less valuable than our base values. {{Link|point values}}.</li>
  
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For example, if you don't have a lot of flexibility, it might be very hard to get good value by using Membership Reward points to book frequent flyer tickets, and they may only be worth 1 cent each. At the opposite extreme, if you have more flexibility, and you highly value premium-cabin award redemptions, Membership Reward points may be worth 3-4 cents each (or even more). </li>
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For example, if you don't have a lot of flexibility, it might be very hard to get good value by using Membership Rewards points to book frequent flyer tickets and they may only be worth 1 cent each. At the opposite extreme, if you have more flexibility and you highly value premium-cabin award redemptions, Membership Rewards points may be worth 3-4 cents each (or even more). </li>
  
 
Different people will want to follow different approaches towards earning rewards:
 
Different people will want to follow different approaches towards earning rewards:
  
 
<ul class="checklist">
 
<ul class="checklist">
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<li>'''Standard approach'''. It is hard to go wrong with our normal points optimization approach, which primarily focuses on earning Chase Ultimate Reward points, but also takes advantage of cards that earn cash-like points, when good Ultimate Reward options are not available. </li>  
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<li>'''Standard approach'''. It is hard to go wrong with our normal points optimization approach, which primarily focuses on earning Chase Ultimate Rewards points, but also takes advantage of cards that earn cash-like points when good Ultimate Rewards options are not available. </li>  
  
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It aims to earn the highest possible reward rates, assuming that you plan to use the points on EASY redemptions (for a variety of travel purchases). It provides the upside of using your Ultimate Reward points for frequent flyer tickets and serves as a good gateway to advanced travel reward strategies, but still provides excellent value even if you never find good frequent flyer award opportunities.  
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It aims to earn the highest possible reward rates, assuming that you plan to use the points on EASY redemptions (for a variety of travel purchases). It provides the upside of using your Ultimate Rewards points for frequent flyer tickets and serves as a good gateway to advanced travel reward strategies, but still provides excellent value even if you never find good frequent flyer award opportunities.  
  
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<li>'''Optimized for frequent flyer tickets'''. If you have the skills and flexibility to get good value from your points by using them for frequent flyer tickets, you can earn higher rewards by including cards which earn Amex's Membership Reward points and Citibank's ThankYou points. {{Link|Transferable Points}}.</li>  
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<li>'''Optimized for frequent flyer tickets'''. If you have the skills and flexibility to get good value from your points by using them for frequent flyer tickets, you can earn higher rewards by including cards which earn Amex's Membership Rewards points and Citibank's ThankYou points. {{Link|Transferable Points}}.</li>  
  
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This is true, even if you are just using them for coach tickets. But if you highly value business and first class award redemptions, and have the patience to build up large quantities of points, you should always try to earn as many "transferable" points as you can. You don't want to mess around with cards that earn cash-like points, when you could be earning extremely valuable transferable reward points instead.  
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This is true, even if you are just using them for coach tickets. But if you highly value business and first-class award tickets and have the patience to build up large quantities of points, you should always try to earn as many "transferable" points as you can. You don't want to mess around with cards that earn cash-like points when you could be earning extremely valuable transferable reward points instead.  
  
 
{{Image|TransferPrograms.png|420}}
 
{{Image|TransferPrograms.png|420}}
  
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For most people, the more of these points, the better. But everything else being equal, Membership Reward points are somewhat better than Ultimate Rewards and ThankYou points. Membership Rewards' larger number of airline partners, occasional transfer bonuses, easier points accumulation, and high limits on purchased points (if necessary), usually makes it the best option if you are actually going to use your points for frequent flyer tickets. Of course, depending on the airlines you are likely to fly, you might wind up with slightly different preferences.
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For most people, the more of these points, the better. But everything else being equal, Membership Rewards points are somewhat better than Ultimate Rewards and ThankYou points. Membership Rewards' larger number of airline partners, occasional transfer bonuses, and easier points accumulation, usually makes it the best choice if you are going to use your points for frequent flyer tickets.  
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Of course, depending on the airlines you are likely to fly, you might wind up with slightly different preferences. Most importantly, if you want to frequently use your points for domestic Delta flights, you'll want to prioritize Membership Rewards points, and if you want to frequently use your points for domestic United flights, you'll want to prioritize Ultimate Rewards points. 
  
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<li>'''Cash Only'''. Some people might prefer focusing strictly on cashback cards, or cards that earn cash-like points (which can be used for a very wide variety of travel purchases). For these people, each type of transferable reward point is only worth its cash-out value.</li>  
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<li>'''Cash Only'''. Some people might prefer focusing strictly on cashback cards or cards that earn cash-like points (which can be used for a very wide variety of travel purchases). For these people, each type of transferable reward point is only worth its cash-out value.</li>  
 
</ul>
 
</ul>
  
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<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 boost the rewards you earn on your spending. {{Link|Business Cards}}.</li>  
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<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 boost your rewards. {{Link|Business Cards}}.</li>  
  
 
{{Card|InkPreferred}}
 
{{Card|InkPreferred}}
  
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<li>'''Some cards are primarily attractive for people who are willing to make an extra effort to optimize their reward rate'''. For example, the Amex Gold card has a high annual fee, but a great reward rate (4x Membership Reward points) on groceries. For most people, their natural grocery store purchases aren't likely to be high enough to justify the annual fee. There are other options that make more sense. But, if you are willing to purchase gift cards from the grocery store, and then use those gift cards at other merchants (or resell them online), you can earn enough extra points to make this card very worthwhile.</li>
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<li>'''Some cards are primarily attractive for people who are willing to make an extra effort to optimize their reward rate'''. For example, the Amex Gold Card has a high annual fee, but a great reward rate (4x Membership Rewards points) on groceries. For most people, their natural grocery store purchases aren't likely to be high enough to justify the annual fee. But if you are willing to purchase gift cards from the grocery store and then use those gift cards at other merchants (or otherwise "liquidate" them), you can earn enough extra points to make this card very worthwhile.</li>
  
 
{{Image|GiftCardRack2.jpg|360}}
 
{{Image|GiftCardRack2.jpg|360}}
  
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Similarly, you can earn fantastic reward rates from rotating category cards, such as the Chase Freedom card. But, you'll need to register for a changing set of reward categories each calendar quarter. And for many quarters, you are likely to have to shift purchases around, or take advantage of gift cards, to maximize the earning potential of the card.  
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Similarly, you can earn fantastic reward rates from rotating category cards, such as the Chase Freedom Card. But you'll need to register for a changing set of reward categories each calendar quarter. And for many quarters, you are likely to have to shift purchases around or take advantage of gift cards to maximize the earning potential of the card.
 
</ul>
 
</ul>
  
 
{{Box}}
 
{{Box}}
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'''If you've decided to make the Amex BUSINESS Platinum card part of your core credit card collection, Membership Rewards cards can be cashed-out at higher values'''. You can use your points at 1.54 cents each to purchase airfare on your favorite airline. This makes cards that earn Membership Rewards more valuable for people who are taking our standard or cash-only approaches to earning points. {{Link|Membership Rewards}}.{{/Box}}
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'''If you've decided to make the Amex BUSINESS Platinum Card part of your core credit card collection, Membership Rewards points can be cashed-out at higher values'''. You can use your points at 1.54 cents each to buy airfare on your favorite airline or for any business or first-class ticket. This makes cards that earn Membership Rewards more valuable for people who are normally interested in our standard or cash-only approaches to earning points. {{Link|Membership Rewards}}.{{/Box}}
  
 
==== Standard approach ====
 
==== Standard approach ====
  
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Our standard approach to optimizing rewards focuses on earning Ultimate Reward points (when possible), and earning cash-like points when there are no good Ultimate Rewards options.  
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Our standard approach to optimizing rewards focuses on earning Ultimate Rewards points (when possible) and earning cash-like points when there are no good Ultimate Rewards options.
  
 
{{List|Card}}
 
{{List|Card}}
 
{{CardItem|UnlimitedCombo}}
 
{{CardItem|UnlimitedCombo}}
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Start with the {{Card|FreedomUnlimited|only}} and {{Card|SapphireReserve|only}} combination to earn 3x Ultimate Reward points ({{Value|UR|3}}%) on '''restaurants''' and '''travel''' and 1.5x Ultimate Reward points ({{Value|UR|1.5}}%) on your '''everyday purchases'''. The Freedom Unlimited has no annual fee. The annual fee on the Sapphire Reserve is $450, but an automatic $300 travel credit drops the effective annual fee to $150.  
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Start with the {{Card|FreedomUnlimited|only}} and {{Card|SapphireReserve|only}} or {{Card|SapphirePreferred|only}} combination to earn 3x Ultimate Rewards points ({{Value|UR|3}}%) on '''restaurants''' and '''drugstores''', 5x Ultimate Rewards points ({{Value|UR|5}}%) on '''travel bought through the Chase website''', 2 or 3x Ultimate Rewards points ({{Value|UR|2}}-{{Value|UR|3}}%) on '''other travel''', and 1.5x Ultimate Rewards points ({{Value|UR|1.5}}%) on your '''everyday purchases'''. The Sapphire Preferred throws in 3x Ultimate Reward points ({{Value|UR|3}}%) on '''Streaming and Online Grocery Services''' and the Sapphire Reserve offers 10x points on hotels and car rentals purchased through Chase. The Freedom Unlimited has no annual fee. The annual fee on the Sapphire Preferred is $95 and it comes with a $50 hotel credit as long as you pay (likely slightly overpriced rates) through Chase. The annual fee on Sapphire Reserve is $550, but an automatic $300 travel credit and a $60 per year DoorDash credit, drops the effective annual fee to $130-250.  
  
 
{{CardItem|Bluecash}}
 
{{CardItem|Bluecash}}
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Add the {{Card|Bluecash|only}} for 6% on your first $6,000 of '''grocery''' store spending, 6% on '''streaming services''', and 3% on '''gas'''. It is almost always your best option for groceries, even with its $95 annual fee.  
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Add the {{Card|Bluecash|only}} for 6% on your first $6,000 of '''grocery''' store spending, 6% on '''streaming services''' and 3% on '''gas'''. It is almost always your best option for groceries, even with its $95 annual fee.
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{{CardItem|Bilt}}
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If you pay '''rent''' and your landlord doesn't take credit cards or charges a credit card fee, you can earn up to 50,000 points per year using the {{Card|Bilt|only}}. Even better, these points can be transferred to Hyatt and a number of great airline partners. If you wind up getting this card and you like the airline partners better than the ones in the Ultimate Rewards program, you may also want to use it to earn 3x Bilt points ({{Value|UR|3}}%) on your dining purchases. No annual fee.  
  
 
{{CardItem|Altitude}}
 
{{CardItem|Altitude}}
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Most people can substantially boost their rewards by using the {{Card|Altitude|only}} to earn 4.5% on all purchases they make with Apple Pay, Google Pay or other '''mobile wallets'''. Once this card is added to your mobile wallet, use it as often as you can, except when you can earn even more from one of your other cards. If you have a Samsung phone, you can use the Altitude Reserve through your Samsung wallet at any credit card swipe machine. If you have a non-Samsung Android phone, consider getting a Samsung watch to do the same thing. Unfortunately, if you want this card, you need to have an existing relationship with U.S. Bank and not many other recently acquired credit cards. $400 annual fee, but an automatic $325 travel credit drops the effective annual fee to $75.  
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Most people can substantially boost their rewards by using the {{Card|Altitude|only}} to earn 4.5% on all purchases they make with Apple Pay, Google Pay or other '''mobile wallets'''. Once this card is added to your wallet, use it as often as you can, except when you can earn even more from one of your other cards. If you have one of many Samsung phones from the past few years, you can use the Altitude Reserve through your Samsung wallet at any credit card swipe machine. If you have a non-Samsung Android phone, consider getting a Samsung Gear 3 watch to do the same thing. Unfortunately, if you want this card, you need to have an existing relationship with U.S. Bank and not many other recently acquired credit cards. $400 annual fee, but an automatic $325 travel and restaurant credit drops the effective annual fee to $75.
  
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{{CardItem|Amazon}}
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{{CardItem|AmazonStore}}
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If you are one of the many people who spends a significant amount at Amazon, the Amazon Prime Visa card offers 5% on '''Amazon purchases''' with no annual fee. It also earns 5% at Whole Foods. It you buy most of your groceries at Whole Foods, you may not need to bother with the Amex Blue Preferred.  
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If you are one of the many people who spends a significant amount at Amazon, you should probably get one of the cards that offers 5% on '''Amazon purchases''' with no annual fee. Your best option is probably the {{Card|affinitycu|only}}, if you can get approved for it. It provides a rotating set of 5% categories on top of its 5% reward rate on Bookstores, including Amazon. Otherwise, we recommend the {{Card|AmazonStore|only}} because it doesn't take up a Chase or Amex Slot, is eligible for most of Amazon's cardholder promotions, and like the Chase and Amex cards, also earns 5% at Whole Foods (if you buy most of your groceries at Whole Foods, you may not need to bother with the Amex Blue Preferred).  
  
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{{CardItem|Ducks}}
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Depending on your shopping habits, you might consider the {{Card|Walmart|only}} for 5% back on '''Walmart.com''' purchases and the [//www.target.com/redcard/about Target Debit Card] for 5% back on '''Target''' purchases.  
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If you spend a lot on gas, you might consider getting a card just for '''gas''' purchases—you can boost your rewards to 5%. There are {{Link|Gas spending|several options}} that have no annual fee. The {{Card|Duck|only}} has the added advantage of earning 5% at '''sporting good stores'''.  
 
  
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{{CardItem|FlexperksTravel}}
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{{CardItem|BOACash}}
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Another card to consider is the {{Card|FlexperksTravel|only}}. It earns 3x Flexpoints (3%) on '''charitable donations''' and '''cell phone service'''. If you spend enough on these categories you can justify its $49 annual fee. On the other hand, if you wind up with a card that includes free cell phone insurance, you'll want to use that for your cell phone charges.  
+
If you can move enough money to Bank of America and/or Merrill Lynch to qualify for Platinum Honors status, you should get the {{Card|BOACash|only}} to boost your rewards on '''online shopping'''. It earns up to 5.25% on up to $2,500 of purchases each quarter. Ideally, you would sign up for a different Bank of America card, collect a more valuable signup offer, wait a year, and then convert it to the Cash Rewards card.
 +
 
 +
{{CardItem|SamsClub}}
 +
If you spend a lot on gas, you might consider getting a card just for '''gas''' purchases—you can boost your rewards to 4 or 5%. There are {{Link|Gas spending|several options}} that have no annual fee. 
 +
 
 +
{{CardItem|CitiCash}}
 +
If you are willing to do some extra work, you can use a Citi Custom Cash Card for up to your first $500 of grocery or dining spend each month (or travel, drugstore, fitness, or home improvement in months you spend a lot on those categories) and earn 5x ThankYou points, rather than your normal category bonus.
  
 
{{/List|Card}}
 
{{/List|Card}}
  
−
If you are willing and able to get business cards, you can further increase your reward earning potential. You can also get the business version of the Amazon card, instead of the personal version, for a slightly better signup offer.  
+
{{Box|Use your travel credits}}
 +
'''If you aren't expecting to travel, you can use some card's travel credits to offset other types of purchases'''. The Sapphire Reserve's travel credit will automatically offset grocery and gas spending, the Citi Prestige Card's will automatically offset restaurant and grocery spending during all of 2021, and the Altitude Reserve Card's will now automatically offset restaurant spending. Make sure to use these cards enough to take advantage of the entire credit amount.
 +
{{/Box}}
 +
 
 +
If you are willing and able to get business cards, you can further increase your reward earning potential.
  
 
{{List|Card}}
 
{{List|Card}}
−
{{CardItem|InkUnlimited}}
+
{{CardItem|InkPreferred}}
−
The business version of the Chase Unlimited card earns the same reward rate as the personal version, but comes with a much higher signup bonus and primary rental car insurance (if you are renting for business reasons). It also doesn't take up one of your Chase 5/24 slots. So, you should get the Ink Unlimited, rather than Freedom Unlimited, if you can.  
+
If you are not willing to pay for the enhanced benefits of the Sapphire Reserve card, such as airport lounge access and the ability to "cash out" your points at 1.5 cents each (rather than 1.25 cents), the Ink Preferred card can be a better rewards option than the Sapphire Preferred. It has the same annual fee, but comes with a much higher signup bonus, 3x Ultimate Rewards points on all non-Chase '''travel''' purchases (rather than 2x), plus bonus rewards on '''shipping''', '''telecommunication services''', and '''online advertising'''. It also doesn't take up one of your Chase 5/24 slots, but can't be freely converted to a Sapphire Reserve if you change your mind.  
  
 
{{CardItem|InkCash}}
 
{{CardItem|InkCash}}
 
You can earn 5x Ultimate Rewards points ({{Value|UR|5}}%) at '''office supply stores''' and on '''telecommunications services''' with the {{Card|InkCash|only}}, with no annual fee (and a generous signup bonus). You also get 2x Ultimate Rewards ({{Value|UR|2}}%) on gas, which is better than the Amex Blue Preferred, but not as good as the best of the specialized gas cards.  
 
You can earn 5x Ultimate Rewards points ({{Value|UR|5}}%) at '''office supply stores''' and on '''telecommunications services''' with the {{Card|InkCash|only}}, with no annual fee (and a generous signup bonus). You also get 2x Ultimate Rewards ({{Value|UR|2}}%) on gas, which is better than the Amex Blue Preferred, but not as good as the best of the specialized gas cards.  
−
 
−
If you actually spend a lot on online advertising, it can be worth getting the {{Card|InkPreferred|only}} instead of, or in addition to, the Ink Cash. It has a $95 annual fee. The {{Card|FNBOBiz|only}} is a non-annual fee card that earns 5% on a range of other actual business expenses.
 
 
{{/List|Card}}
 
{{/List|Card}}
  
 
==== Optimized for frequent flyer tickets ====
 
==== Optimized for frequent flyer tickets ====
  
−
If you are willing and able to get good value from using your reward points for frequent flyer tickets, you can increase the value of your rewards by including cards that earn Membership Reward and/or ThankYou points.  
+
If you are willing and able to get good value from using your reward points for frequent flyer tickets, you can increase the value of your rewards by including cards that earn Membership Rewards and/or ThankYou points.  
  
 
{{List|Card}}
 
{{List|Card}}
−
{{CardItem|EverydayPreferred}}
+
{{CardItem|DoubleCash}}
−
Start with {{Card|EverydayPreferred|only}}. As long as you make at least 30 charges per month, it earns 4.5x Membership Reward points on '''groceries''', 3x Membership Reward points on '''gas''', and 1.5 Membership Reward points on '''everyday spending'''. It is well worth its $95 annual fee. If you won't naturally make 30 charges per month, there are some {{Link|30 charges|tricks}} to make sure you always qualify for the bonus.  
+
Start with the {{Card|DoubleCash|only}}. When combined with a Citi Premier (or Prestige) Card, it earns 2x ThankYou points on '''everyday purchases'''.
  
−
{{CardItem|CitiPrestige}}
+
Alternatively, if you can take good advantage of Capital One's 1:1 airline partners, get the {{Card|Venture|only}}. Like the Double Cash card, it earns 2x points on all spending. Capital One has a better selection of airline partners, but you only get 1:1 transfers with some of them.  
−
Add the {{Card|CitiPrestige|only}} for 5x ThankYou points on '''restaurants''', '''airfare''', and purchases from '''online travel agencies''', and 3x ThankYou points on '''hotels''' and '''cruises'''. The card has a $495 annual fee, but a $250 automatic travel credit reduces the effective annual fee to $245. Some Citibank banking customers can save an additional $145 on the annual fee, bringing it down to $100. And the card comes with a potentially valuable 4<sup>th</sup> night free benefit.  
 
  
−
If you want to save some money in annual fees, or you really don't want to earn ThankYou points, you can settle for earning "only" 3x Ultimate Reward points on restaurants and travel with the {{Card|SapphireReserve|only}}. Its effective annual fees is $150 and it also has the benefit of earning 3x points on a wider range of travel purchases (and providing primary rental car insurance and a valuable set of free travel insurance). But, it usually doesn't make sense to pay the annual fee for both card over the longer term.
+
{{CardItem|CitiPremier}}
 +
If you want to keep things simple, get the {{Card|CitiPremier|only}}. For just a $95 annual fee, you'll earn 3x ThankYou points on '''airfare''', '''hotels''', '''restaurants''', '''groceries''', and '''gas''', and be able to transfer all your points to frequent flyer programs. If you aren't collecting signup bonuses, it has the added benefit of focusing your reward earning in a single program. However, if you are collecting signup bonuses, you'll wind up with points in all the major programs anyway.  
  
−
Unless you are planning on taking advantage of gift cards to maximize the grocery store category, the {{Card|PremierRewards|only}} is probably NOT a good alternative. It's 4x Membership Reward rate is more attractive than the Sapphire Reserve's 3x points. But, it is harder to take advantage of its "airline incidental" credit to offset the $250 annual fee, doesn't offer bonus rewards on travel expenses (other than airfare), doesn't offer free trip delay and cancellation insurance, and doesn't include other premium card benefits.  
+
If you prefer to focus on Capital One points, you could get the {{Card|SavorOne|only}} instead and earn 3x Capital One points on '''restaurants''', '''groceries''', and '''entertainment'''. You would then want to look at an additional option for travel and gas.  
  
−
{{CardItem|ATT}}
+
{{CardItem|CitiRewards}}
−
The  {{Card|ATT|only}} offers 2x ThankYou points on any almost any '''online purchase''', including '''Amazon''', and doesn't charge an annual fee.
+
The  {{Card|CitiRewards|only}} gives you a '''10% rebate''' on the first 100,000 ThankYou points you redeem each year, boosting the value from the Double Cash, Premier Card, and discontinued Prestige Card.  
  
−
{{CardItem|MorganStanley}}
+
{{CardItem|Bilt}}
−
Another option that can boost your rewards rate is the {{Card|MorganStanley|only}}. It earns 2x Membership Reward points at select '''department stores''', with no annual fee. However, you'll need to signup for an Access account from Morgan Stanley to qualify for the card.  
+
If you pay '''rent''' and your landlord doesn't take credit cards or charges a credit card fee, you can earn up to 50,000 points per year using the {{Card|Bilt|only}}. Even better, these points can be transferred to Hyatt and a number of great airline partners. If you wind up getting this card and you like the airline partners better than the ones in the Ultimate Rewards program, you may also want to use it to earn 3x Bilt points ({{Value|UR|3}}%) on your dining purchases. No annual fee.  
  
 
{{CardItem|Altitude}}
 
{{CardItem|Altitude}}
−
Some people may want to earn 4.5% by using the {{Card|Altitude|only}} for '''mobile wallet purchases'''. If you value Membership Reward points at less than 3 cents each, earning 4.5% in cash-like points is better than earning 1.5x Membership Reward points from simply using your Everyday Preferred card. Similarly, the Altitude Reserve can boost the rewards you earn from travel purchases that aren't covered by the Citi Prestige card.  
+
Some people may want to earn 4.5% by using the {{Card|Altitude|only}} for '''mobile wallet purchases'''. If you value Membership Rewards or ThankYou points at less than 2.25 cents each, earning 4.5% in cash-like points is better than earning 2x points with the Double Cash Card (or Blue Business Plus Card).  
 +
 
 +
{{CardItem|AmazonStore}}
 +
You may prefer 5% on Amazon from one of the cards that offers 5% on '''Amazon purchases''' over 2x points from your everyday card. Your best option is probably the {{Card|affinitycu|only}}, if you can get approved for it. It provides a rotating set of 5% categories on top of its 5% reward rate on Bookstores, including Amazon. Otherwise, we recommend the {{Card|AmazonStore|only}} because it doesn't take up a Chase or Amex Slot, is eligible for most of Amazon's cardholder promotions, and like the Chase and Amex cards, also earns 5% at Whole Foods (if you buy most of your groceries at Whole Foods, you may not need to bother with the Amex Blue Preferred).
 +
 
 +
Depending on your shopping habits, you might also consider the {{Card|Walmart|only}} for 5% back on '''Walmart.com''' purchases and the [//www.target.com/redcard/about Target Debit Card] for 5% back on '''Target''' purchases.  
  
 +
{{CardItem|BOACash}}
 +
If you can move enough money to Bank of America and/or Merrill Lynch to qualify for Platinum Honors status, you might prefer the 5.25% from {{Card|BOACash|only}} (on up to $2,500) of '''online purchases''' to 2x transferable points.
 +
 +
{{CardItem|CitiCash}}
 +
If you are willing to do some extra work, you can use a Citi Custom Cash Card for up to your first $500 of grocery or dining spend each month (or travel, drugstore, fitness, or home improvement in months you spend a lot on those categories) and earn 5x ThankYou points, rather than your normal category bonus. 
 +
 +
{{CardItem|Rakuten}}
 +
If you can't maximize your rewards on the BOA Cash card (or you are hitting the quartly caps), you can earn 3x Membership Rewards points on at least '''some of your online purchases''' with the {{Card|Rakuten|only}}. It only works for online purchases made through the Rakuten (eBates) shopping portal.
 +
 +
{{CardItem|Freedom}}
 +
Adding the {{Card|Freedom|only}} will let you earn 3x Ultimate Rewards points on '''drugstores''', 5x Ultimate Rewards points on your first $1,500 of spending in a '''rotating set of categories''' each quarter, and 5x Ultimate Rewards points on '''travel bought through Chase'''. It also gives you the option if earning 3x Ultimate Rewards points (rather than 3x ThankYou points) on '''restaurants'''. But to transfer the points to frequent flyer or hotel programs, you'll need to pay the annual fee for a Sapphire Preferred or Sapphire Reserve card each year.
 
{{/List|Card}}
 
{{/List|Card}}
  
−
If you can add business cards into the mix, you can sign up for some additional cards.  
+
If you can add business cards into the mix, many people will want to switch over to primarily Membership Rewards points.
  
 
{{List|Card}}
 
{{List|Card}}
 
{{CardItem|BlueBiz}}
 
{{CardItem|BlueBiz}}
−
You can earn 2x Membership Reward points on '''everyday spending''' with the {{Card|BlueBiz|only}}, rather than only 1.5x with the Amex Everyday Preferred. Most people will still want to get the Everyday Preferred card as well (for grocery store and gas purchases).  
+
Most people would prefer to earn 2x Membership Rewards points with the {{Card|BlueBiz|only}} over 2x ThankYou points with the Double Cash Card. However, note that the 2x rate is capped at $50,000 per copy of the card per year and that Amex cards aren't accepted at all merchants.  
  
−
Increasing your base earning rate to 2x Membership Reward points makes the Morgan Stanley card and the regular version of the AT&T Access card superfluous. And it may tip the balance against earning 4.5% with the Altitude Reserve card.   
+
{{CardItem|GreenCard}}
 +
If you don't want to split your points between two different programs and you don't want the Citi Presige Card for its other benefits, you can augment the Blue for Business Card with the {{Card|GreenCard|only}} and the {{Card|EverydayPreferred|only}} to earn 3x points on '''travel''' and '''restaurants''' and up to 4.5x points on '''groceries''' and '''gas'''.  The annual fees for both cards total about $250.
  
 
{{CardItem|InkCash}}
 
{{CardItem|InkCash}}
−
For '''office supply stores''', '''telecommunication services''', and other '''business-oriented categories''', you would follow the same recommendations as our standard strategy, except that if you spend a lot of money on online advertising, shipping, or computer purchases, you should get the {{Card|GoldBiz|only}}. Remember that if you get the Ink Cash card, you will need the Ink Preferred, Sapphire Reserve, or Sapphire Preferred card to take full advantage of any points you'd earn.  
+
For '''office supply stores''', '''telecommunication services''', and other '''business-oriented categories''', you would follow the same recommendations as our standard strategy. Remember that if you get the Ink Cash Card, you will need the Ink Preferred, Sapphire Reserve, or Sapphire Preferred Card to take full advantage of any points you'd earn.  
 
{{/List|Card}}
 
{{/List|Card}}
  
Line 192: Line 220:
 
<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>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>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>  
+
<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 purchases with the Citibank Double Cash 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>
 
</ul>
 
{{/Box}}
 
{{/Box}}
Line 200: Line 228:
 
==== Cash only approach ====
 
==== Cash only approach ====
  
−
If you want to stick with cashback (and other cash-like points), you'll need to make a few adjustments to our Standard approach.  
+
If you want to stick with cashback (and other cash-like points), you might want to make a few adjustments to the standard approach described above. If you are still interested in the extra benefits of the Sapphire Reserve Card, you could stick with the '''Chase Unlimited combo'''. Even if you are simply cashing out your points through "pay yourself back" or via paying for travel on the Chase website, you'll earn 4.5% on all your travel, dining, and drugstore purchases, 7.5% on travel purchased through Chase, and 2.25% on everything else.
 +
 
 +
If the Sapphire Reserve isn't worth its annual fee...
  
 
{{List|Card}}
 
{{List|Card}}
 
{{CardItem|Alliant}}
 
{{CardItem|Alliant}}
−
Instead of the Chase Unlimited Combo, start with a card that gives you the best cashback rate on '''everyday spending'''. For many people that's the {{Card|Alliant|only}}, which earns 2.5% (3% during the first year), but has a $99 annual fee. If you don't expect to spend at least $20,000 per year (not including bonus category spending on other cards), you can choose one of the {{Link|general purpose|cards}} that earns 2%, but has no annual fee. Or if you are able to manage $100,000 of investment or retirement funds at Merrill Lynch, you can qualify for Platinum Honors status, and receive 2.625% from the {{Card|BOATravel|only}} or {{Card|BOAPremium|only}}.
+
Get the best '''{{Link|general purpose|general purpose card}}''' you can. That could be the {{Card|Alliant|only}}, one of the no-annual-fee 2% cards, or the {{Card|BOAUnlimited|only}} or {{Card|BOAPremium|only}} (if you qualify for Bank of America's Platinum Honors status).  
  
−
{{CardItem|Uber}}
+
{{CardItem|Altitude}}
−
For '''restaurants''', get the {{Card|Uber|only}}, instead of the Sapphire Reserve. It offers 4% on dining with no annual fee. In addition, it has a bonus reward rate of 3% on airfare and hotels. If you aren't able to get the Altitude Reserve (4.5%) and don't qualify for the highest level of bonus rewards ($100,000 under management) with the Bank of America Premium Rewards card (4.125%), you might want to use this for your travel purchases as well. Although, in that situation, you'd be able to do slightly better by earning 4x points (3.6%) with the {{Card|PenfedTravel|only}}.
+
Use the {{Card|Altitude|only}} for your '''travel''' purchases, as well as for '''mobile wallet''' purchases.  
  
−
If you spend a lot, you may be better off with {{Card|CitiPrestige|only}}. You'll earn 5x points on restaurants, airfare, and purchases from online travel agencies. Even if you simply use your ThankYou points to purchase travel, this works out to 5%. You can bump the redemption rate to 6.25% by combining with the Citi Premier card or almost 7% by combining with both the Citi Premier and Citi Rewards+ cards. The problem is that you'd need to pay an effective annual fee of $245-$340.  
+
{{CardItem|AltitudeGo}}
 +
If you find that you can't use your Altitude Reserve Card at many of the restaurants you visit, consider getting the {{Card|AltitudeGo|only}} to earn 4% back on those '''restaurants'''.  
 +
{{/List|Card}}
  
 +
Alternatively...
 +
{{List|Card}}
 +
{{CardItem|Fairwinds}}
 +
If you spend enough to justify the $249 annual fee, get the little-known {{Card|Fairwinds|only}}. It earns 5x points on '''travel''', 3x points on '''restaurants''', and 2x points '''everywhere else'''. But points are worth 1.5 cents each when used to buy travel through the CURewards website, giving you a reward rate of 7.5% on travel, 4.5% on restaurants, and 3% everywhere else.
 
{{/List|Card}}
 
{{/List|Card}}
  
−
Besides these substitutions, you'd follow the same recommendations as the standard approach, getting the {{Card|BlueCash|only}} for groceries, streaming services, and maybe gas; the {{Card|Altitude|only}} for mobile wallet payments (and in this case 4.5% on travel), the {{Card|Amazon|only}} for Amazon, and possibly the {{Card|Ducks|only}} for sporting good stores and a higher reward rate at gas stations, and the {{Card|FlexperksTravel|only}} for charitable donations and cell phone service.  
+
Regardless of which of these three approaches you take for your everyday, travel and restaurant purchases, you'd follow the other recommendations of the standard approach, getting the {{Card|BlueCash|only}} for '''groceries''', '''streaming services''', and maybe gas; the {{Card|Bilt|only}} for '''rent''' you can't pay with other cards, the {{Card|Altitude|only}} for '''mobile wallet payments''', one of the Amazon cards for '''Amazon''', the {{Card|BOACash|only}} for '''online shopping''', potentially the {{Card|Freedom|only}} for '''drugstores''', '''travel purchased through Chase''', and a '''set of rotating categories''' and/or the {{Card|CitiCash|only}} for a boost on one category of your choice per month, and possibly a card for '''gas''', '''Walmart.com''', and '''Target'''.
 +
 
 +
Then if you are willing and able to get business cards, you might add on:
  
 
{{List|Card}}
 
{{List|Card}}
 
{{CardItem|InkCash}}
 
{{CardItem|InkCash}}
−
If you are able to include business cards to the mix, the {{Card|InkCash|only}} earns 5x Ultimate Rewards back on '''office supplies''' and '''wireless telephone services'''. The {{Card|FNBOBiz|only}} earns the same rate on a much wider variety of '''business services''', but isn't available nationwide. Neither card has an annual fee.
+
The {{Card|InkCash|only}} earns 5x Ultimate Rewards back on '''office supplies''' and '''wireless telephone services'''.  
−
 
 
 
{{/List|Card}}
 
{{/List|Card}}
  
 
=== Best options for each category ===
 
=== Best options for each category ===
  
−
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.  
+
If you want to see some other options for each category, make sure to view our “Best Options” guides.  
  
 
<center>
 
<center>
Line 235: Line 272:
 
</center>
 
</center>
  
−
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.
+
Also, Doctor of Credit has good set of [//www.doctorofcredit.com/credit-card-reference-pages/#Category_Spending_Bonuses reference pages] that provides relatively up-to-date information on the options for different bonus categories.
−
 
 
−
=== Advanced reward optimization options ===
 
−
 
 
−
If you are willing to make the extra effort, there are a number of other cards that can further maximize your rewards.
 
−
 
 
−
==== Pick a category cards ====
 
−
 
 
−
With several credit cards, such as the {{Card|CashPlus|only}} and the {{Card|BOACash|only}}, you get to choose your own bonus category(s) from a set of options, and earn reward rates as high as 5%. These cards often include bonus categories, such as Online Shopping, Home Utilities, Fitness Centers, or Clothing Stores, which aren't available from other cards. The big downside is that rewards are capped on $1,500, $2,000 or $2,500 of bonus category per quarter. {{Link|uncommon categories|Pick Your Own Category Cards}}.
 
−
 
 
−
{{Card|CashPlus}}
 
−
 
 
−
This limits the upside of these cards. In addition, you'll want to make sure you don't spend more than the cap each quarter, as the reward rate on any additional spending drops to only 1%. These cards may make you  feel compelled to make extra efforts to try to maximize the rewards each quarter.
 
−
 
 
−
Since you can switch categories every one to three months, you can increase your rewards by planning your major purchases. For example, one of the options for earning 5% from the Cash Plus card is "Furniture Stores". If you want to buy some furniture, you can delay your purchase, choose Furniture Stores as one of your two categories for the following quarter, and wind up earning 5% on the purchase.
 
−
 
 
−
==== Rotating category cards ====
 
−
 
 
−
With rotating category cards, the categories change every quarter, not based on your choice, but on a schedule determined by the credit card company. {{Link|rotating category}}.
 
−
 
 
−
{{Image|FreedomCalendar2017.png}}
 
−
 
 
−
Like the "Pick Your Category" cards, the amount of bonus rewards you can earn each quarter is capped, typically on $1,500 on spending. Reward rates can be very high. For example, the {{Card|Freedom|only}} card earns 5x Ultimate Reward points, and the {{Card|Discover|only}} earns 10% (during the first year).
 
−
 
 
−
Since you don't get to choose your own categories, you're likely to wind up with some quarters where you won't naturally spend very much money on the supported categories, or where you already have cards that earn high rewards on most of your qualifying spend.
 
−
 
 
−
While you can use Rotating Category cards to boost your rewards, they require extra effort. You have to remember the current set of categories and work it into your shopping routine and you need to register for the bonus categories each quarter. You need to make sure you don't spend more than the capped amount each quarter and you may feel compelled to find ways to spend up to the cap, by shifting around purchases or using gift cards.
 
−
 
 
−
==== Maximizing high reward rates with gift cards ====
 
−
 
 
−
There are a number of credit cards that earn reward rates of 5% or higher on a variety of different bonus categories. But, not all of your spending will naturally fit into these categories. As a result, you can take advantage of gift cards to increase the rewards you earn from your credit card spending.
 
−
 
 
−
<ul class="bulletlist">
 
−
<li>'''You can buy gift cards at many locations where you can earn high reward rates, and then use them at locations where you would normally receive lower rates'''. For example, you may normally need to settle for your base reward rate for purchases made at BestBuy. But, if you purchase BestBuy gift cards at the grocery store, you can earn a high bonus reward rate (such as 4.5x Membership Reward points with the Everyday Preferred card or 6% cashback with the Blue Cash Preferred card) when you buy the cards. Of course, you might get an even better deal purchasing discounted gift cards online.</li>
 
−
 
 
−
<li>'''You can potentially purchase Visa, MasterCard or Amex gift cards to extend this approach to almost any type of spending'''. Many gift cards are tied to specific merchants like BestBuy or iTunes, but other gift cards can be anywhere that normally accepts credit and debit cards. Unfortunately, these flexible cards have additional activation fees. But, the fee for a $500 Visa gift card is around 1-1.5%. So, if your bonus reward rate is high enough, it is still worthwhile to buy these cards and use them, instead of your general purpose reward card, whenever you can.</li>
 
−
 
 
−
<li>'''Grocery stores aren't the only good option for earning high rates on gift card purchases.''' With the right card, you can earn very high bonus reward rates purchasing gift cards at office supply stores, many gas stations, and home improvement stores.</li>
 
−
 
 
−
<li>'''In some cases, gift cards can help you maximize your rewards by shifting spending to another part of the year'''. For example, rotating category cards earn very high reward rates, but change their bonus categories every quarter. If you aren't going to naturally hit the spending cap for a given quarter, you can often purchase gift cards to make up the gap. Then, you can spend the gift cards later in the year.</li>
 
−
 
 
−
You can even purchase a gift card for the same store. For example, the Chase Freedom card typically offers bonus rewards for drugstore purchases during one quarter of the year. During that quarter, you can stock up on your favorite drugstore's gift cards, and then use the cards for your drugstore spending, during the remainder of the year.
 
−
 
 
−
<li>'''You can earn even more rewards by using gift cards for manufactured spending'''. Rather than simply using your gift cards to earn bonus rewards for spending you are making at other locations or times, you can purchase gift card that you resell online, or convert into money orders and deposit into your bank account. {{Link|manufactured spending}}.</li>
 
−
 
 
−
<li>'''If you can take advantage of a lot of gift cards, it changes the credit cards you might want to get'''. For example, we often recommend getting the Amex Everyday Preferred card for grocery store (and gas) spending. Assuming you hit the 30 transaction per month minimum, it earns 4.5x Membership Reward points on groceries, and has a $95 annual fee. In contrast, the Amex Gold card "only" offers 4x Membership Reward points on groceries and has a $250 annual fee. But, the Amex Gold card has a $25,000 per year cap, and the Everyday Preferred card has a $6,000 cap. For many people, that difference is irrelevant. But, if you have have the ability to use the entire capped amount via Gift cards, the Gold card is the better deal. You may even  want to get both cards, plus potentially other cards that offer high bonus rewards at supermarkets, to increase your total cap even further. </li>
 
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Similarly, many people may not be particularly interested in a card that earns high bonus rewards at office supply stores. Their amount of natural office supply spending isn't enough to make it that interesting. But, if you have no problem using gift cards, earning 5x Ultimate Rewards with the Ink Cash card is an incredible deal.
 
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If you want to concentrate on earning cash-like points, the "Wells Fargo Combo" lets you boost your rewards on at least some categories.
 
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The {{Card|Propel|only}} 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 {{Card|WellsFargoSig|only}}, you can use your points at 1.5 cents to purchase airfare through Wells Fargo. This raises the effective bonus reward rate on these categories to 4.5% and neither card has an annual fee.
 
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Setting up this combo will take some time. You can only get one Wells Fargo card every 15 months, so you need to start with the Propel card, and then wait over a year until you can get the Visa Signature card and start redeeming any rewards. In addition, if you've recently gotten a bunch of other cards, you may not get approved for either card
 
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If you are following our standard points optimization approach, or focusing on earning transferable points, the Wells Fargo combo isn't very helpful. You'll already be earning higher reward rates on restaurants and travel.
 
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If you are willing to take the time, you can combine several approaches to earn 4-5% on all your spending.
 
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Latest revision as of 18:11, 21 September 2021

  Easily Earn Points for Free Travel, Credit Card Reference

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The most straightforward way to earn free travel is to get a credit card that offers a great reward rate on your purchases and 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.

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 cashback) 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. 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 isn't for everyone

  • Optimizing your rewards, by using different credit cards for different purchases, makes life more complicated. It is simpler to just carry around a single card and use it for all your purchases, rather than getting, carrying, and choosing from a collection of different credit cards.
  • You can earn a lot more points by collecting signup bonuses, rather than optimizing your ongoing reward rates. Unless you have some means of spending a lot of money, the amount of extra reward points you can earn by using an optimized set of cards (over the course of a year) is often smaller than the signup bonus for just one or two cards. For example, if would be able to spend $20,000 per year in bonus categories, and you earned an average of an extra 3% using bonus category rewards, you would earn an extra $600 per year—about the same as one good signup bonus.

    • Furthermore, if you choose to focus on signup bonuses, most of your spending will be focused on meeting initial spending requirements and you'll have less opportunity to take advantage of optimized reward rates. Credit Card Signup Bonuses: The Easiest Path to Free Airplane Tickets and Hotel Nights.

    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 by using those slots to get good signup bonuses (and ongoing travel benefits) rather than getting cards simply for their high reward rates. Ideally, concentrate on signup bonuses first and worry about optimizing your reward rates later.

  • Not everyone wants to bother using a bunch of different cards for different purchases, and we don’t blame them.
  • However, many other people (and some of us) get immense satisfaction about earning 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. If you are hardcore, you can often find ways to generate additional spending, so that you can meet the initial spending requirements for as many cards as you can, while still collecting bonus rewards with your best cards.
  • 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 worry about, stick to a great general purpose rewards card (or maybe a two-card strategy like the Chase Unlimited combo).

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 both 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 vice versa.
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  • 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 at least 1.5 cents each. On the other end of the scale, some hotel points, like Hilton's, are only worth .4-.5 cents each.
  • To determine whether a card is worthwhile, you need to determine whether the extra points you'll earn justifies the card’s annual fee. To figure out the value you expect to 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. Then you need to subtract the card's annual fee.

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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 the same $5,000 of groceries. If you value the Ultimate Rewards points at 1.7 cents each, that works out to $130. The Blue Preferred Card only earns $170 in extra rewards. And, to earn those extra rewards, you’ll need to pay the Blue Preferred Card's $95 annual fee.

    The final net benefit works out to $75 per year, not the $300 of expected rewards. If you spend less on groceries, you'll earn less. 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 usually 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.

  • 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 valuable. Only pay attention to cards that have category bonuses worth 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.

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The best cards for increasing your rewards

Before you can determine which cards to get for different spending categories, you need to make some decisions about 1) which types of points to earn, 2) whether you are willing and able to use business cards, and 3) how much extra work you're willing to do.

  • The type of reward points you should earn depends on how you plan to use your points. We assign a "value" for each type of point based on a range of typical travelers. Depending on your plans and situation, these points can be much more valuable or much less valuable than our base values. How Much are Points Worth?.
    • For example, if you don't have a lot of flexibility, it might be very hard to get good value by using Membership Rewards points to book frequent flyer tickets and they may only be worth 1 cent each. At the opposite extreme, if you have more flexibility and you highly value premium-cabin award redemptions, Membership Rewards points may be worth 3-4 cents each (or even more).

    Different people will want to follow different approaches towards earning rewards:

    • Standard approach. It is hard to go wrong with our normal points optimization approach, which primarily focuses on earning Chase Ultimate Rewards points, but also takes advantage of cards that earn cash-like points when good Ultimate Rewards options are not available.

      • It aims to earn the highest possible reward rates, assuming that you plan to use the points on EASY redemptions (for a variety of travel purchases). It provides the upside of using your Ultimate Rewards points for frequent flyer tickets and serves as a good gateway to advanced travel reward strategies, but still provides excellent value even if you never find good frequent flyer award opportunities.

    • Optimized for frequent flyer tickets. If you have the skills and flexibility to get good value from your points by using them for frequent flyer tickets, you can earn higher rewards by including cards which earn Amex's Membership Rewards points and Citibank's ThankYou points. Introduction to 'Transferable' Reward Points.

      • This is true, even if you are just using them for coach tickets. But if you highly value business and first-class award tickets and have the patience to build up large quantities of points, you should always try to earn as many "transferable" points as you can. You don't want to mess around with cards that earn cash-like points when you could be earning extremely valuable transferable reward points instead.

      TransferPrograms.png

      For most people, the more of these points, the better. But everything else being equal, Membership Rewards points are somewhat better than Ultimate Rewards and ThankYou points. Membership Rewards' larger number of airline partners, occasional transfer bonuses, and easier points accumulation, usually makes it the best choice if you are going to use your points for frequent flyer tickets.

      Of course, depending on the airlines you are likely to fly, you might wind up with slightly different preferences. Most importantly, if you want to frequently use your points for domestic Delta flights, you'll want to prioritize Membership Rewards points, and if you want to frequently use your points for domestic United flights, you'll want to prioritize Ultimate Rewards points.

    • Cash Only. Some people might prefer focusing strictly on cashback cards or cards that earn cash-like points (which can be used for a very wide variety of travel purchases). For these people, each type of transferable reward point is only worth its cash-out value.
  • 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 boost your rewards. Unlock Extra Reward Points with Business Credit Cards.

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  • Some cards are primarily attractive for people who are willing to make an extra effort to optimize their reward rate. For example, the Amex Gold Card has a high annual fee, but a great reward rate (4x Membership Rewards points) on groceries. For most people, their natural grocery store purchases aren't likely to be high enough to justify the annual fee. But if you are willing to purchase gift cards from the grocery store and then use those gift cards at other merchants (or otherwise "liquidate" them), you can earn enough extra points to make this card very worthwhile.
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    Similarly, you can earn fantastic reward rates from rotating category cards, such as the Chase Freedom Card. But you'll need to register for a changing set of reward categories each calendar quarter. And for many quarters, you are likely to have to shift purchases around or take advantage of gift cards to maximize the earning potential of the card.

If you've decided to make the Amex BUSINESS Platinum Card part of your core credit card collection, Membership Rewards points can be cashed-out at higher values. You can use your points at 1.54 cents each to buy airfare on your favorite airline or for any business or first-class ticket. This makes cards that earn Membership Rewards more valuable for people who are normally interested in our standard or cash-only approaches to earning points. Membership Rewards Guide.

Standard approach

Our standard approach to optimizing rewards focuses on earning Ultimate Rewards points (when possible) and earning cash-like points when there are no good Ultimate Rewards options.

Start with the Freedom Unlimited Card and Sapphire Reserve Card or Sapphire Preferred Card combination to earn 3x Ultimate Rewards points (5.1%) on restaurants and drugstores, 5x Ultimate Rewards points (8.5%) on travel bought through the Chase website, 2 or 3x Ultimate Rewards points (3.4-5.1%) on other travel, and 1.5x Ultimate Rewards points (2.55%) on your everyday purchases. The Sapphire Preferred throws in 3x Ultimate Reward points (5.1%) on Streaming and Online Grocery Services and the Sapphire Reserve offers 10x points on hotels and car rentals purchased through Chase. The Freedom Unlimited has no annual fee. The annual fee on the Sapphire Preferred is $95 and it comes with a $50 hotel credit as long as you pay (likely slightly overpriced rates) through Chase. The annual fee on Sapphire Reserve is $550, but an automatic $300 travel credit and a $60 per year DoorDash credit, drops the effective annual fee to $130-250.

Add the Blue Cash Preferred Card for 6% on your first $6,000 of grocery store spending, 6% on streaming services and 3% on gas. It is almost always your best option for groceries, even with its $95 annual fee.

If you pay rent and your landlord doesn't take credit cards or charges a credit card fee, you can earn up to 50,000 points per year using the Bilt Mastercard. Even better, these points can be transferred to Hyatt and a number of great airline partners. If you wind up getting this card and you like the airline partners better than the ones in the Ultimate Rewards program, you may also want to use it to earn 3x Bilt points (5.1%) on your dining purchases. No annual fee.

Most people can substantially boost their rewards by using the Altitude Reserve Card to earn 4.5% on all purchases they make with Apple Pay, Google Pay or other mobile wallets. Once this card is added to your wallet, use it as often as you can, except when you can earn even more from one of your other cards. If you have one of many Samsung phones from the past few years, you can use the Altitude Reserve through your Samsung wallet at any credit card swipe machine. If you have a non-Samsung Android phone, consider getting a Samsung Gear 3 watch to do the same thing. Unfortunately, if you want this card, you need to have an existing relationship with U.S. Bank and not many other recently acquired credit cards. $400 annual fee, but an automatic $325 travel and restaurant credit drops the effective annual fee to $75.

If you are one of the many people who spends a significant amount at Amazon, you should probably get one of the cards that offers 5% on Amazon purchases with no annual fee. Your best option is probably the Affinity Cash Rewards Card, if you can get approved for it. It provides a rotating set of 5% categories on top of its 5% reward rate on Bookstores, including Amazon. Otherwise, we recommend the Amazon Prime Store Card because it doesn't take up a Chase or Amex Slot, is eligible for most of Amazon's cardholder promotions, and like the Chase and Amex cards, also earns 5% at Whole Foods (if you buy most of your groceries at Whole Foods, you may not need to bother with the Amex Blue Preferred).

Depending on your shopping habits, you might consider the Capital One Walmart Card for 5% back on Walmart.com purchases and the Target Debit Card for 5% back on Target purchases.

If you can move enough money to Bank of America and/or Merrill Lynch to qualify for Platinum Honors status, you should get the BOA Cash Rewards Card to boost your rewards on online shopping. It earns up to 5.25% on up to $2,500 of purchases each quarter. Ideally, you would sign up for a different Bank of America card, collect a more valuable signup offer, wait a year, and then convert it to the Cash Rewards card.

If you spend a lot on gas, you might consider getting a card just for gas purchases—you can boost your rewards to 4 or 5%. There are several options that have no annual fee.

If you are willing to do some extra work, you can use a Citi Custom Cash Card for up to your first $500 of grocery or dining spend each month (or travel, drugstore, fitness, or home improvement in months you spend a lot on those categories) and earn 5x ThankYou points, rather than your normal category bonus.

Use your travel credits

If you aren't expecting to travel, you can use some card's travel credits to offset other types of purchases. The Sapphire Reserve's travel credit will automatically offset grocery and gas spending, the Citi Prestige Card's will automatically offset restaurant and grocery spending during all of 2021, and the Altitude Reserve Card's will now automatically offset restaurant spending. Make sure to use these cards enough to take advantage of the entire credit amount.

If you are willing and able to get business cards, you can further increase your reward earning potential.

If you are not willing to pay for the enhanced benefits of the Sapphire Reserve card, such as airport lounge access and the ability to "cash out" your points at 1.5 cents each (rather than 1.25 cents), the Ink Preferred card can be a better rewards option than the Sapphire Preferred. It has the same annual fee, but comes with a much higher signup bonus, 3x Ultimate Rewards points on all non-Chase travel purchases (rather than 2x), plus bonus rewards on shipping, telecommunication services, and online advertising. It also doesn't take up one of your Chase 5/24 slots, but can't be freely converted to a Sapphire Reserve if you change your mind.

You can earn 5x Ultimate Rewards points (8.5%) at office supply stores and on telecommunications services with the Ink Cash Card, with no annual fee (and a generous signup bonus). You also get 2x Ultimate Rewards (3.4%) on gas, which is better than the Amex Blue Preferred, but not as good as the best of the specialized gas cards.

Optimized for frequent flyer tickets

If you are willing and able to get good value from using your reward points for frequent flyer tickets, you can increase the value of your rewards by including cards that earn Membership Rewards and/or ThankYou points.

Start with the Citi Double Cash Card. When combined with a Citi Premier (or Prestige) Card, it earns 2x ThankYou points on everyday purchases.

Alternatively, if you can take good advantage of Capital One's 1:1 airline partners, get the Capital One Venture Card. Like the Double Cash card, it earns 2x points on all spending. Capital One has a better selection of airline partners, but you only get 1:1 transfers with some of them.

If you want to keep things simple, get the Citi Premier Card. For just a $95 annual fee, you'll earn 3x ThankYou points on airfare, hotels, restaurants, groceries, and gas, and be able to transfer all your points to frequent flyer programs. If you aren't collecting signup bonuses, it has the added benefit of focusing your reward earning in a single program. However, if you are collecting signup bonuses, you'll wind up with points in all the major programs anyway.

If you prefer to focus on Capital One points, you could get the Capital One SavorOne Card instead and earn 3x Capital One points on restaurants, groceries, and entertainment. You would then want to look at an additional option for travel and gas.

The Citi Rewards+ Card gives you a 10% rebate on the first 100,000 ThankYou points you redeem each year, boosting the value from the Double Cash, Premier Card, and discontinued Prestige Card.

If you pay rent and your landlord doesn't take credit cards or charges a credit card fee, you can earn up to 50,000 points per year using the Bilt Mastercard. Even better, these points can be transferred to Hyatt and a number of great airline partners. If you wind up getting this card and you like the airline partners better than the ones in the Ultimate Rewards program, you may also want to use it to earn 3x Bilt points (5.1%) on your dining purchases. No annual fee.

Some people may want to earn 4.5% by using the Altitude Reserve Card for mobile wallet purchases. If you value Membership Rewards or ThankYou points at less than 2.25 cents each, earning 4.5% in cash-like points is better than earning 2x points with the Double Cash Card (or Blue Business Plus Card).

You may prefer 5% on Amazon from one of the cards that offers 5% on Amazon purchases over 2x points from your everyday card. Your best option is probably the Affinity Cash Rewards Card, if you can get approved for it. It provides a rotating set of 5% categories on top of its 5% reward rate on Bookstores, including Amazon. Otherwise, we recommend the Amazon Prime Store Card because it doesn't take up a Chase or Amex Slot, is eligible for most of Amazon's cardholder promotions, and like the Chase and Amex cards, also earns 5% at Whole Foods (if you buy most of your groceries at Whole Foods, you may not need to bother with the Amex Blue Preferred).

Depending on your shopping habits, you might also consider the Capital One Walmart Card for 5% back on Walmart.com purchases and the Target Debit Card for 5% back on Target purchases.

If you can move enough money to Bank of America and/or Merrill Lynch to qualify for Platinum Honors status, you might prefer the 5.25% from BOA Cash Rewards Card (on up to $2,500) of online purchases to 2x transferable points.

If you are willing to do some extra work, you can use a Citi Custom Cash Card for up to your first $500 of grocery or dining spend each month (or travel, drugstore, fitness, or home improvement in months you spend a lot on those categories) and earn 5x ThankYou points, rather than your normal category bonus.

If you can't maximize your rewards on the BOA Cash card (or you are hitting the quartly caps), you can earn 3x Membership Rewards points on at least some of your online purchases with the Rakuten Cash Back Card. It only works for online purchases made through the Rakuten (eBates) shopping portal.

Adding the Freedom Flex Card will let you earn 3x Ultimate Rewards points on drugstores, 5x Ultimate Rewards points on your first $1,500 of spending in a rotating set of categories each quarter, and 5x Ultimate Rewards points on travel bought through Chase. It also gives you the option if earning 3x Ultimate Rewards points (rather than 3x ThankYou points) on restaurants. But to transfer the points to frequent flyer or hotel programs, you'll need to pay the annual fee for a Sapphire Preferred or Sapphire Reserve card each year.

If you can add business cards into the mix, many people will want to switch over to primarily Membership Rewards points.

Most people would prefer to earn 2x Membership Rewards points with the Blue Business Plus Card over 2x ThankYou points with the Double Cash Card. However, note that the 2x rate is capped at $50,000 per copy of the card per year and that Amex cards aren't accepted at all merchants.

If you don't want to split your points between two different programs and you don't want the Citi Presige Card for its other benefits, you can augment the Blue for Business Card with the Amex Green Card and the Everyday Preferred Card to earn 3x points on travel and restaurants and up to 4.5x points on groceries and gas. The annual fees for both cards total about $250.

For office supply stores, telecommunication services, and other business-oriented categories, you would follow the same recommendations as our standard strategy. Remember that if you get the Ink Cash Card, you will need the Ink Preferred, Sapphire Reserve, or Sapphire Preferred Card to take full advantage of any points you'd earn.

Earning More Value from Many Chase and Citibank Cards
  • Some Chase and Citibank cards earn less-flexible versions of their 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 purchases with the Citibank Double Cash 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.

Cash only approach

If you want to stick with cashback (and other cash-like points), you might want to make a few adjustments to the standard approach described above. If you are still interested in the extra benefits of the Sapphire Reserve Card, you could stick with the Chase Unlimited combo. Even if you are simply cashing out your points through "pay yourself back" or via paying for travel on the Chase website, you'll earn 4.5% on all your travel, dining, and drugstore purchases, 7.5% on travel purchased through Chase, and 2.25% on everything else.

If the Sapphire Reserve isn't worth its annual fee...

Get the best general purpose card you can. That could be the Alliant Cashback Card, one of the no-annual-fee 2% cards, or the BOA Unlimited Cash Rewards Card or BOA Premium Rewards Card (if you qualify for Bank of America's Platinum Honors status).

Use the Altitude Reserve Card for your travel purchases, as well as for mobile wallet purchases.

If you find that you can't use your Altitude Reserve Card at many of the restaurants you visit, consider getting the Altitude Go Card to earn 4% back on those restaurants.

Alternatively...

If you spend enough to justify the $249 annual fee, get the little-known Fairwinds Visa Signature Card. It earns 5x points on travel, 3x points on restaurants, and 2x points everywhere else. But points are worth 1.5 cents each when used to buy travel through the CURewards website, giving you a reward rate of 7.5% on travel, 4.5% on restaurants, and 3% everywhere else.

Regardless of which of these three approaches you take for your everyday, travel and restaurant purchases, you'd follow the other recommendations of the standard approach, getting the Blue Cash Preferred Card for groceries, streaming services, and maybe gas; the Bilt Mastercard for rent you can't pay with other cards, the Altitude Reserve Card for mobile wallet payments, one of the Amazon cards for Amazon, the BOA Cash Rewards Card for online shopping, potentially the Freedom Flex Card for drugstores, travel purchased through Chase, and a set of rotating categories and/or the Citi Custom Cash Card for a boost on one category of your choice per month, and possibly a card for gas, Walmart.com, and Target.

Then if you are willing and able to get business cards, you might add on:

The Ink Cash Card earns 5x Ultimate Rewards back on office supplies and wireless telephone services.

Best options for each category

If you want to see some other options for each category, make sure to view our “Best Options” guides.

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General Purpose
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Travel
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Restaurants
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Groceries
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Gas
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Retail Shopping
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Other...

Also, Doctor of Credit has good set of reference pages that provides relatively up-to-date information on the options for different bonus categories.




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Credit Cards 101
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Get a Great General Purpose Reward Card and Use It for All of Your Spending
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Best Credit Cards for Travel Spending
Send comments or suggestions to editor@travelstrategies.com or leave a comment below.



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