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Currently, I have a Capital one with a 1% flat rate. it's nothing special but they were the first company to trust me, maybe in the future I'll try to PC for a spark to get the extra 50% annually. I was just approved for a Discover More which I'm excited about. I am looking forward to having that card grow with me. In the future I was thinking about Amex BCE. To me, I think that seems like a solid plan and a good number of cards.
But I know there can be some gaps where like having a Chase Freedom can get a 5% too in some categories or like a Citi Forward for 5x points at bookstores and the like. But is there a point where having so many rewards spread out on so many cards counterproductive merely by the fact that your rewards are all separated and it's just more of a hassle trying to redeem or get them all together? In short: which plan is the best? A select few good ones, or having a lot of cards to insure the maximum on each category. Thank you.
A lot of it depends on how much you put on your cards in a year. Most of the cards with more than 1% average rewards have annual fees, so they are only worthwhile if you are a big spender. I have a long commute to work, so the BoA Cash Rewards 123 works for me, so I can get the 3% on gas. Discover More is good that way too, since they have had gas as a 5% category for six months this year. The 123 and Discover More have a spending cap of $1500 on their categories. PenFed offers 5% without a spending cap if you are someone who travels by car a ton, but you need to have immaculate credit to get it.
There are also plenty of airline specific CCs that offer frequent flyer miles, but that's only useful if you want to save up points for flights and you don't mind paying an annual fee. Capital One Venture card for people with excellent credit has decent airline miles and no AF, but they aren't worth as much as an airline specific card.
You just have to decide what is most important to you when choosing a rewards program.
To be hoenst I think that the Chase Freedom and Discover More card are counterproductive because they both have the same if not similar rotating categories. I think Discover has a little better rewards, but the freedom gives 1% back on all other purchases which is nice. I still think though you should go with one or the other as I have both an know first hand. The second advice I have is if you want to go with AMEX maybe go with a charge card like the Zync. I know it does not have the great benefits of a BCE, but its a step in the door with AMEX and it's nice sometimes to have a charge card instead of a credit card. Lastly, if you want to travel or fly get a card geared towards that. Having cards geared towards your needs are better and more useful. Here is an example of a card collection maybe for you
Capt. 1 - your first card let it build up your Age of Accounts
Discover More - use for 5% categories and Shop Discover ( your cashback card)
American Express Zync - a charge card with a $25 ann. fee, gets you in the door with AMEX
In the future once you build up higher credit limits 5k+ you decide on maybe 2 more:
BCE or BCP which you can use mainly for groceries and gas esp. when Discover isn't running a category in that subject
and
Chase Sapphire Preferred, Airline card, or hotel card. Depending on what you do and what card is best geared towards you.
I think though after 1 year you should apply for a CLI with Discover. You can reconsider it if they don't give you an amount you like. I did that and they showed me some love.
I wish you the best of luck, but I think your on the right track having a plan. You will know when you have enough credit cards, I just recently have.
Discover is a great company and the Discover More is a wonderful card. What I love about Discover is that the customer service is IMO the best. They are kind and really want to help you vs. some other companies the customer service almost seems a fake nice. The rewards are excellent and you get a lot of card designs to choose from. The only problem I have with Discover is they are not are not excepted everywhere (in most cases they are accepted where I live) and I have never gotten an auto CLI, but I have heard of many people who have. I don't want you going strictly by my example unless you find those cards to be tailored to your needs. I think the problem many of us face when we get/want credit cards are we go for the status of the card or the look of it, verses how it will be used and if it is worth getting. The cards that are tailored more towards your spending habits I find to be the individuals favorite cards.