I get this question all the time – “what card should I get”? My answer is always the same: it depends. I know it seems like a bit of a scapegoat and “consultant” answer, but it’s quite true. So in this post I want to highlight some questions you should ask yourself in determining your next steps.

We all have different goals

What I recommend to Person A for their high restaurant spend may not work for Person B who eats at home all the time. My credit card strategy revolves around travel rewards, which some may find too difficult to manage as they want just one single simply cashback structure.

So, here are some of the questions you want to ask yourself. I’ll break down each question individually throughout the post.

• Are you after sweet travel deals, or are you looking just for cash back?
• What category do you spend the most per month?
• Do you care about an annual fee?
• Are you a free agent or a loyalist?
• How many cards have you had in the past 24 months? Past 30 days?

We all have different goals

I see the value in amassing large amounts of travel rewards in order to redeem for unforgettable experiences. For many years my parents have sowed the seed in me to experience different cultures and see different parts of the world. Therefore, balancing all these cards and playing this game is truly worth it for me.

On the other hand, my mom used to not have any strategy or organization. She went for cash back exclusively and always redeemed points at 1CPP. It’s not like she wasn’t willing to travel comfortably – paying cash for a higher class of service was always on the table. After years of refining my strategy and her seeing what I’m able to accomplish, she’s started to warm up to the idea. She sees how I’m able to come home often by using just miles at the very last minute. There have also been a couple international trips where booking “Free” Business has sweetened the pot.

And then there’s my dad. Credit cards are far too complicated. He wants one card, puts all his spending on one card earning 1.5%, and redeems the cash back every few months. Easy, straightforward, and unwavering. After all, keeping up with all these devaluations is like keeping track of all your passwords. Might as well just use one for everything, right? (This is a joke by the way, please use a password manager…)

No matter where you fall along the spectrum, there isn’t one correct answer. Obviously my strategy gives me a lot of cash back, but I truly enjoy doing it. But Jeff Bezos probably values his time more than earning a few credit card points. Even if after reading my whole blog you want to stick with simplicity, fine by me.

If you’re looking for a straightforward cash back card, look no further than the Citi Custom Cash or Double Cash cards. If you spend a lot on Apple Pay, then the Apple Card might be useful for you.

We all spend differently

Even if you’re looking for a cash back card and not a travel card, you should try and tailor your strategy to your spending. Where do you spend the most money every month? If you spend a decent amount on rent, the Bilt Card is a no-brainer. If you like food and either eat out or cook at home a lot, you may find great value out of the Amex Gold with 4x rewards. If you spend about $500 on transit (tolls, trains, car rentals, etc.) a month, the Custom Cash offers that as a specific category for the 5%.

For me, I travel quite a bit and see the value in having multiple premium cards for the lounge access. I can’t tell you how much money I’ve saved over the years by eating my meals in the lounge before a trip. Just this month alone (October), I’ve done 6 round trips and therefore ate 12 meals in airport lounges. I’d see that as at least a $120 savings.

We all see value differently

American Express is infamous for their “coupon book” approach to credit cards. Instead of offering a card with a low annual fee, they guarantee a profit upfront by having a very high annual fee but providing value in the form of rebates and credits. The idea is that a good handful of people won’t fully utilize all their credits and lose value.

For example, take the AmEx Platinum. With its $695 annual fee cardholders get credits for the Fine Hotels program, airline incidental credits, Saks Fifth Avenue, etc. If you forget to use these credits within a set time, they don’t roll over. I’ve previously met someone (we’ll call him Bob) who has the card and doesn’t use any credit because it was “too hard to track”. It’s people like Bob who help subsidize the card and should really consider alternatives.

For some, the couponing just isn’t worth it. So they may feel comfortable with building a card strategy without any annual fees. It’s straightforward, easier to track, and doesn’t artificially inflate the spend

We all travel differently

So many brands and companies have followed in the footsteps of the airlines when they realized they can earn a lot of money with cobranded credit cards. There is no way to possibly get every card out there.

If you exclusively fly American Airlines, then getting an AAdvantage card makes sense. If you live at a United hub (like I do), odds are you’ll fly United with their hundreds of nonstop service destinations, so that card may provide value. If you shop on Amazon and spend decent money there, then the 3% back on that credit card is really handy.

I used to be an American and Marriott loyalist. Even if a direct flight on Delta got me home quicker, I would normally choose a connection in DFW or PHL just to earn the American miles. That got me 3 years of Platinum status and quite a few international Business class redemptions along the way.

Now I’ve turned into somewhat of a free agent. I’m not shooting for the highest status on any airline or program anymore – it’s just not worth the time or the money. Instead, I’ll just fly what makes the most sense and is the most convenient for me. Since moving to Denver, I’ve pretty much flown exclusively Southwest and United, giving up on American (instead putting spend on credit cards to get the status).

I’m currently in a position where I can get credit cards with all the major airlines, hotels, and issuing banks. So free agency for me makes sense. I’ll never fall below Gold on Hilton and Marriott, never below Discoverist on Hyatt, and never below Platinum on American.

If you’re just starting out, I wouldn’t recommend getting a cobranded credit card unless there is immediate value for you. The airline cobranded credit cards offer a free checked bag which c an save hundreds if you check a bag often. It’s best to use one of those available slots at a bank with Transferrable Points Currencies, such as Amex, Capital One, Chase, or Citi. Those provide maximum flexibility with your rewards as in the worst case scenario, the 1CPP cashback redemption option is always there.

We all have unique history

Most of the banks have their credit and banking arms intertwined in some way. This means that actually having a bank account with this bank may help build a relationship and improve your odds of approval. Bank of America is a huge relationship bank where having an existing account will help approval odds substantially. One of the biggest exceptions is Capital One where the banking arm is completely separate, so having the HYSA has no impact on your approval odds.

But now ask yourself if these odds outweigh the rules that each bank has outright. If you have been approved for more than 5 credit cards in the past 2 years, Chase will not approve you for another card regardless of how good your relationship is with them. Even if you are a top-tier cardmember with Amex, you may get a card, but you might not get the SUB if you’ve received one before (though that typically just means 7 years). Each bank has their own rules, so it’s important to check each of these before applying.

Still Confused?

This is a lot, I know. But if you want some more advice or have any questions, feel free to reach out to me. I’ll just ask you to use my referral code as payment 🙂