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Planning best cards for future

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Essence
Contributor

Planning best cards for future

Hi, I've been a long time reader and would like to thank everyone here. I've learned a lot of tips and have tried to get started on the right foot. I have a question in regards to cash back cards. I know we all love to earn rewards, but is there a point where having too many cash back cards is counter productive?

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.

Message 1 of 8
7 REPLIES 7
Crashem
Valued Contributor

Re: Planning best cards for future

For cash back cards, it probably doesn't matter as much. Obviously it depends on your yearly expenditures. If you can manage, maximizing rewards is good. Think about getting more than 1% card. Also don't think you can pc to spark card as it is business card
               LIMITS IN CARD DESCRIPTIONS
Message 2 of 8
lithium78
Established Contributor

Re: Planning best cards for future

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.


Starting Score: TU: 566
Current Score: TU: 741 (Discover FICO); EQ: 755 (MyFico) EX: 774 (FAKO)
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Message 3 of 8
Essence
Contributor

Re: Planning best cards for future

Thank you for the advice! Smiley Happy
Message 4 of 8
Carbon44
Contributor

Re: Planning best cards for future

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. 

Chase Sapphire Preferred (Visa Signature), Citi Dividend World Elite, Discover IT, American Express Blue Cash Everyday, American Express Zync
Message 5 of 8
Essence
Contributor

Re: Planning best cards for future

Thanks for your advice. It was great to hear your experience with Discover and Freedom. To me, it did sound a little redundant to have both. Thanks for your example plan. To me that sounds pretty good! I Will follow that unless through the years future cards come out that overtake the benefits of the Amex/preferred. I can't wait for that Discover love though haha. Gonna be a long year! For some reason I have an odd interest with Discover so I am really excited to see that grow with me over the years!
Message 6 of 8
Carbon44
Contributor

Re: Planning best cards for future

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. 

Chase Sapphire Preferred (Visa Signature), Citi Dividend World Elite, Discover IT, American Express Blue Cash Everyday, American Express Zync
Message 7 of 8
Essence
Contributor

Re: Planning best cards for future

I definitely agree, I know cards targeted for my spending will be the best thing for me. The problem is there are so many cards to choose from! Haha. Fortunately I do have time on my side, and I can keep on looking while I am growing my history and scores. I just really want to do it right, I like to plan stuff haha. I'm keeping your template and those cards in my mind, and I will keep my eyes and ears open for other cards and how they compare/ fit into my life. I think that might be the best thing!
Message 8 of 8
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