Best one-two punch

[Anonymous]

I like to carry as few cards in my wallet as possible. In fact, I use a business card holder as my wallet--it can only accomodate five cards. With my driver license, health insurance card, and debit card, I have room in my wallet for two credit cards for daily spending. Which means I'm always in search of the best combination of two cards. 

So what's the best combination of two cards for daily spending? Ok to have another one on file for online shopping (e.g., I have an Amazon card that I don't carry), or special purposes (I have a Discover card for use in China)--but for daily driving, if you could only have two?

Interestingly I think the best combinations are same-company combinations, from Bank of America or from Chase.

The Bank of America one-two punch requires you to be a "preferred rewards" customer, if you put your retirement saving, IRA, 401k, etc, in Merrill Edge you get a big bonus on your credit card cash back rate. I can get an extra 75% back which makes the BoA one-two combination:

BoA premium rewards card -- with 75% extra it pays 2.63% on all transactions and 3.5% on travel and dining

BoA cashback card -- with 75% extra it pays 3.5% at Costco/SAMS and 5.25% back on gas.

That's a pretty good one-two punch!

And then there's Chase. The Chase one-two punch is to combine a Sapphire card with the Freedom Unlimited. While Freedom Unlimited ordinarily only gives you 1.5% back you can transfer the points to your Sapphire card and get an extra 50% back making it 2.25% back at a minimum and possibly more depending on how you value UR points--if you enjoy shopping for the best points deal, probably a lot more. And obviously you get the Sapphire card which gives you 2 UR points on travel/dining worth 3% minimum back on travel--again, you may value the UR points more highly.

So I think it depends on whether you just like getting back cash, in which case the BoA one-two punch is pretty sweet. Or if you are good at optimizing your travel benefits you might be able to squeeze more out of the Chase one-two punch. Personally I hate sifting travel sites for the best deal so I am going to go for the BoA one-two punch--I just applied for the Premium Rewards card, and once it arrives I will product change my Travel Rewards to a Cash Rewards to set it up. Already moved my savings from Vanguard over to Merrill to get the 75%.

Are there any other good combinations?

[Shadowfactor]

Your theory with chase is a little flawed.

You only get the extra % bonus if you use them for travel on the travel portal.
Cash and transfers do not get a extra % added.

Also the only chase card that gives you a 50% bonus on the portal is the chase CSR.
CSP is 25%. The regular chase sapphire does not give a bonus for the portal at all.

[wasCB14]

---

@Anonymous wrote:
Interestingly I think the best combinations are same-company combinations, from Bank of America or from Chase.

---

Advantages: Easier to track spending. Limiting the number of reward currencies you earn means rewards can be redeemed more quickly.

Disadvantage: Two cards from the same bank may have the same weaknesses in the benefits they provide. For example, I'm not clear on how much truth vs. speculation there is about Chase nerfing price and return protection. But let's say they eliminate them entirely. If you have two Chase cards, you won't have those benefits on purchases where they might be useful.

[Kforce]

1) All your eggs in one basket is not necessarily good.

2) Look at your real monthly spend, it can be surprising, 5-6% on gas might not make as much money as a 2% general spend or a 3% on four  categories that you use a lot.

Because you asked, but not necessary good for your spend, my two cards.

Bank of the West Cashback MC (3% on gas, groceries, fast food, restaurants) Rewards/mo  $30 - $35

FNBO 2% Cashback Visa, 2% uncapped, anything. Rewards/mo  $60+.

At home a couple  5% in specific categories.

[SBR249]

If I had to go with a 1-2 punch, I'd say a good tiered rewards card and a good general cashback card. 

A tiered rewards card could be something like Chase CSR or Citi Costco or AmEx BCP/BCE that offers elevated rewards on one or two categories that you spend a lot in like groceries, travel, restaurants, etc. 

Then a good general CB card would be a Citi Double Cash or Paypal CB MC with the 2% across the board. If you have a Paypal business debit, then you effectively get 3% CB at most places when paired with the Paypal MC as a backup funding source. 

That combination should guarantee that you are getting around 3-5% on most purchases while only needing to physically carry 2 cards. 

[Anonymous]

FNBO 2% Cashback Visa, 2% uncapped and my USAA 2.5% work well. Remember, never put all your eggs in one basket. My memory recalls when CIti, Chase and US Bank went off line a few years back due to outside intervention of their files (they never said much) but it was a shocker. Spread the risk. Rotate the cards if it works depending on your estimated spending needs. I too only carry two cards and so on so I plan my usage and load the wallet accordingly. As to muggers ... sorry not much to steal

[UpperNwGuy]

My one-two punch is:

1.  Chase Sapphire Reserve for travel and dining (3x points becomes 4.5% when redeemed for travel at 1.5 cents a point)

2.  PenFed Power Cash Rewards for everything else (2% flat rate cash back)

I am missing a way to capture the grocery category since I closed my Amex Blue Cash Everyday a year ago, but I'm only losing about $36 a year by getting 2% instead of 3% on groceries.

Wish I could qualify for that Bank of the West card.  Gas, groceries, and dining as 3% categories on a single card is awesome.

[Anonymous]

working my way up, so dont have the best of the best but i like to carry my quicksilver one and discover it. Capital one has always been very forgiving and really rotating categories with the discover.

[Anonymous]

@ShadowFactor

You can transfer the "points" from you Chase Freedom Unlimited to your Sapphire Reserve and then use them as UR points on the Chase travel portal, effectively getting the 50% bonus on the Freedom Unlimited.

But yes you have to use the Chase travel portal to make it worthwhile. If you do though then the Freedom Unlimited becomes a 2.25% back card at a minimum, and more if you think you can get more than that by transferring your UR points to a partner program.

That makes the Freedom Unlimited better than 2% card, but ONLY if you also have the Sapphire Reserve to transfer its points to.

I don't like hunting for travel deals myself which is why I am going the BoA route and getting a straight 2.63% back on all purchases, 3.5% on Costco (where I buy my groceries), dining, and travel, and 5.25% on gas.

[longtimelurker]

---

@Anonymous wrote:

Already moved my savings from Vanguard over to Merrill to get the 75%.

Are there any other good combinations?

---

While this is probably OK for most people, you need to make sure you avoid being (to use a British expression) "Penny wise, pound foolish"    With a lot of money in an IRA/40XY etc, a fraction of a percent increase in fees (or, for heavy traders, transaction charges) can very quickly negate the amount of extra money earned by rewards on credit card spending.