I share your idea that it is not ideal to get cards without free downgrade paths when you are starting out, trying to build up AAoA. My recommendations to college aged folks: if you have options, opt for a no AF Visa or MasterCard from a large national bank with flexible PC options.
Now I don't know what your definition of a beginner travel card is but I'd imagine to a college student it's more about money saving and budget travel rather than status, lounge access or luxury. If that's the case, a free cash back card may fit your needs better than most "travel" cards.
BoA PR is essentially a cash back card but with an AF and I would only recommend it if you are at least Platinum with BoA. If you want to try out Chase's system, get the Chase trifecta by adding a CSP and a Freedom. Reevaluate after one year, you will have the option to upgrade the CSP to CSR or downgrade to CF/CFU. IMO UR is easier for beginners than MR because you have access to Chase portal and cash back as options.
@Anonymous wrote:Among no annual fee cards, Bank of America Cash Rewards set to Travel earns 3% (more if you have money with them or Merrill such as an IRA) on a wide variety of travel merchants (biggies plus garages, toll booths, amusement parks, taxis, AirBNB, Uber, etc). These come in Mastercard (basic, MLB) and Visa (Komen, US Pride, Wildlife). They also provide a nice sign up bonus of 15-20% on the first $500 or $1000 of spending.
If you are a Costco member, the Citi Costco Anywhere card is no AF and earns 3% on a smaller group of key travel merchants such as airlines, hotels, car rentals, travel agencies and cruise lines. It also earns 4% at the gas pump at Costco.
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Among cards with smaller annual fees, it's hard to beat the Chase World of Hyatt card, especially if it is a daily driver and you spend $15K on the card per year.
For $95, you get one free Hyatt night certificate per year worth 15,000 points. Hyatt points are worth 1.7 cents, so that's $255 in value. In addition, you earn 2x Hyatt points (3.4%) at restaurants, gyms, transit and airlines. The card provides certain travel insurance like trip cancellation, trip delay, lost baggage and delayed baggage. The card also provides points and status at Hyatt meaning you earn 16.2% back on paid Hyatt stays.
If you spend $15,000 per year on the card, you get a 2nd free night certificate worth 15,000 points. It's like earning 1x more Hyatt point per dollar on the first $15K. So now you earn 2x everywhere (3.4%), 3x or 5.1% on restaurants, flights, gyms and transit, and 17.9% back on paid Hyatt stays.
It's the best low annual fee hotel card on the market.
WoH is an awesome card. I have one. But WoH is VISA Siggy, same $5k concern as CSP.
Paging Capital One Quicksilver. In the category of no AF, no FTF, works everywhere card, that is Not VISA Siggy, it's really hard to beat.
You mention that you're planning to take two international trips in the next two years. This means that if you get a credit card with an AF, you can expect to pay the AF for two years to cover both trips, even if you get it with the intention of downgrading later. Two trips in two years is a very light schedule, and hardly worth making it an important bullet point in your search. I do not think I would look for a travel card specifically.
Personally, I think you'll do better ignoring the travel aspect of your search, with the possible exception of choosing something with no foreign transaction fee. Look for a card with a good cash back rewards. Also, a good SUB is beneficial, assuming you can meet the MSR. However, even the value of a SUB isn't so important when you plan to keep the card forever.
I am an expat and so I prioritize cards with no FTF, but as I travel internationally fairly often, I don't mind paying an AF for good travel benefits. Many of my cards have either an AF or a FTF, but two that I have without either are Capital One QuickSilver and HSBC Cash Rewards Mastercard. There are many more too. You specifically mentioned being leery of Capital One, but I would highly recommend their QuickSilver credit card.
Good luck on the application, Venture has a nice SUB.
However Venture is WEMC, which leads to the same $5k minium limit issues. It is also an "advanced" Cap One card. If someone has a credit file with other larger limit cards, that can be successful. For a first CapOne just starting out, I'm not sure I'd go there just yet.
The Quicksilver has no minimum CL, earns you 1.5% everywhere, which is nearly the same as Venture, no AF, no FTF. Spend some time with the QS, like 12 months, and Venture should be a shoe-in.
@Anonymous wrote:I did not know this! Glad I found out now. I will probably just try and create a relationship with them with their lower tier cards. I'm looking to try and get my first 5k card so I can potentially get approved down the line. I'm going to try the Amex 3x but hope that everything going on right now doesn't ruin my chances as I'll be eligible in July
You may not be able to get the QS right out of the gate. I believe they require 3 years of credit history or 3 years with a certain card limit before they'll approve you for one of their prime cards. You may have to go with a Platinum and then upgrade it in about 4 months to a QS. That's what I did to get one.
