American Express Membership Rewards points are some of the best rewards you can earn because they're flexible - you can use them for travel, gift cards, or statement credits, among other things.
Amex cards that earn Membership Rewards include:
Each card offers a unique set of bonuses and benefits depending on how you spend and travel.
While Amex's rewards program has a lot of flexibility, that doesn't mean all redemption options get the same cents per point value.
Let's start with the worst ways to use your Amex points.
Amex has a shopping portal with many products you can buy with Membership Rewards points. While this is a versatile way to use your points, it doesn't have a high redemption value.
For 10,000 points, you'll only get a value of 0.5 CPP— which is not the best value for Amex points.
If you're set on using points for merchandise, you might be better off buying a gift card or going through a shopping partner like Amazon.
Amex has a ton of airline transfer partners that you can transfer your points straight to.
Most partners offer a 1-to-1 transfer rate, so if you transfer 1,000 points to them, they will give you 1,000 points back. Sometimes, American Express runs promotions for transfer partners where you can get a better rate.
One thing to keep in mind here is the Excise Tax Offset Fee.
In most cases, American Express charges an excise fee of 0.06 cents per point (capped at $99 for any single transfer) when you transfer points to U.S. airlines with a card such as The Platinum Card®.
American Express's U.S. airline partners that charge an excise fee include:
On a 100,000-point transfer, that fee equates to $60. In addition to these charges, the airline may also charge taxes and fees.
However, not all partners charge this fee. Some of the airline programs where you can transfer Membership Rewards points without paying any fees include:
Since these are points from airlines outside the United States, American Express won't charge you the Excise Tax Offset fee to transfer points into these programs, although you need to evaluate their value (Note: some of them are hard to redeem points from). Transferring points to their hotel partners will also be free of charge.
Unfortunately, the only way to transfer points to your Delta SkyMiles account is through AMEX, so be prepared to pay the fee to utilize them.
To get the best redemption rates, you need to do a lot of research before you transfer your points.
If you don't want to pay your card bill, you can redeem your points for statement credits, effectively wiping out any purchases you made with the card. While this option is handy, it also isn't recommended.
However, if you're in a pinch, this can help.
It's best used as a last resort if you need some last-minute funds to cover your balance. But each point will only be worth 0.6 CPP. So the low value makes it not a great option.
We'll talk about other setups later in this post if you're after cash.
With JustGiving, you can donate your points to over 1.5 million charities. Unless you can redeem your points for travel, you'll likely get no more than 0.7 cents per point from this redemption option.
The points aren't the greatest value for your money, but if you don't need your points, this is a decent option.
Beware of the value change, though. Depending on the organization, the value of your points may vary, so pay attention.
Doing the math can help you make a bigger impact.
With American Express Travel, you can book all kinds of travel, including hotels, vacation packages, and cruises.
If you book travel through the American Express Travel portal (excluding airfare), you will only earn 0.7 CPP. In addition, considering other companies will give you 1 CPP, booking your travel using the Amex Travel portal may not be the best way to spend your Amex points.
Keep in mind that using the Amex Travel Portal is NOT the same as using a transfer partner.
Similar to option 1, you can use your points to spend with certain merchants.
The cents per point come out to 0.7 mostly, except for NYC Taxis and Ticketmaster.com. Those have different point-to-cent ratios, so check the redemption rate before redeeming, as redemption rates may vary from retailer to retailer.
You also need to be careful because some platforms like Amazon can automatically fill in that you're using M.R. points when you check out.
If you want to use your points for shopping, there are probably better options in this list.
This option is new for 2022.
If you have a business checking account with Amex, you can redeem your points for cash. You'll get 0.8 CPP, so 10,000 points would come out to $800. These points are considered rebates instead of income, so you're not taxed on them.
So if you have a lot of points, cashing out your business checking account through your Business Platinum might be a better option. (More about this below)
Gift cards come in different types, and your redemption value varies. Then again, there are many 1 CPP options with less variance, which is not too bad.
It may not be the best redemption method for your Amex points because it has additional hoops to jump through.
With Upgrade with Points, you can bid on seat upgrades at over 20 participating airlines using your Membership Rewards points. This is a convenient option if you are worried about cramped seats on long flights.
It might make more sense to upgrade your seat with the actual card and earn more points because there are higher-value options to redeem your points. However, membership rewards here are worth at least 1 CPP depending on how you use them.
If you value your seat on the plane, you might like this option.
This is a great option for the avid traveler.
Compared to other companies, you can get a decent rate on your points. You can expect to redeem 1 CPP with flights and hotels if you book it through the Amex Portal.
But if you have the Chase Sapphire Reserve, you could get 1.5 CPP when you book through their own portal.
With this option, you can get an elevated value for your points, whether it is flights, and pay yourself back.
This is a better option than the 7th option mentioned above.
Instead of $800 per 100,000 points, you can get a better rate of 1 CPP. That comes out to $1,000 per 100,000 points. You must have the Amex Business Platinum card, though.
If you run a large business, that might be enough to offset the annual fee, but you still need to do the math.
If you own a Morgan Stanley brokerage account, this might be useful.
It's similar to a business checking account using your business platinum but on a more personal card side.
If you own the Platinum Card from American Express Morgan Stanley edition, you can cash out your points to your brokerage account at 1 CPP.
The points can be cashed out anywhere once they reach your brokerage account.
Though, you might want to consider these things first before you use this option:
I made a blog post about this before and how to waive the annual fee. You can learn more about it here: https://www.asksebby.com/guides/waive-amex-platinum-annual-fee
You can transfer M.R. points at 1.1 CPP to your brokerage account with the Platinum Card from American Express Charles Schwab. So if you're looking to redeem for cash, this might be the best option.
However, as with any other Amex Platinum cards, there are a few things you need to consider:
If you have a Business Gold, you can get a 25% rebate when you book an eligible flight.
So, if you use 100,000 points to cover a $1,000 flight, you'll get 25,000 points back. That means you used only 75,000 points for a $1,000 purchase, which works out to a rate of 1.33 CPP.
The maximum rebate is 250,000 points, so you wouldn't want to redeem more than 1 million.
Platinum Business cardholders can redeem M.R. points for travel and get a 35% rebate when they use their card for either first class or business class travel or flights with the airline of their choice (via the travel incidental credit).
That means if you spend 100,000 points for a $1,000 flight, you'll get 35,000 points back. Considering the 35% points rebate, the effective value is 1.54 CPP.
This is your best bet if you're looking for a simple travel redemption. The maximum rebate here is 1 million points per year, so you wouldn't want to redeem more than 2.85 million.
This is the same for the two previous options, but even better!
You can redeem your points with Business Centurion for a 50% rebate. As you know, spending 100,000 points for a $1,000 flight would get you 50,000 points back.
With the rebate, you can effectively get 2 CPP, the highest rate we've discussed.
On top of that, there is no maximum rebate. However, the personal Centurion card does not offer flight rebates.
Finally, you can transfer your points to American Express airline and hotel partners.
The rate here can be up to 10 CPP, but it can generally fluctuate or come out to about 2 or 3 CPP when you get through all the transferring. There are a lot of nuances to this one.
But for avid travelers, this might be a decent option for you.
American Express points can be redeemed in many ways, so it's important to know which one gives you the most value.
While you can use them for merchandise or shopping with Amazon, they don't provide good value.
Most people will get the best value from their points by transferring them to airline or hotel partners or using your Amex business card.
Watch this video to find out how to get the most out of your Amex points:
Starting May 31, 2020, Chase added a new temporary benefit for Chase Sapphire Preferred® Card and Chase Sapphire Reserve® members to “Pay Yourself Back.”
Note: The “Pay Yourself Back” feature is not available to the no annual fee Chase Sapphire card.
The Pay Yourself Back Program lets Chase Sapphire Preferred and Sapphire Reserve cardholders redeem Ultimate Rewards to offset select category purchases at a favorable rate.
Pay Yourself Back Categories:
The current promotion is valid through September 30, 2020, but it’s possible that it may be extended due to uncertain times.
[ March 30 Update ] Pay Yourself Back is extended until Sept 30, 2021.
Sign into your online Chase account and navigate to the Ultimate Rewards tab located on the bottom of the left column.
Select the card you’d like to access. If you have multiple Ultimate Reward earning cards, you can choose to pool points to the Sapphire card to redeem.
In our example, we choose the Chase Sapphire Reserve.
Navigate to the left hand column and select the “Pay Yourself Back” menu item. Clicking the main promotional banner also works, as seen in the screenshot below.
The current categories for pay yourself back are: restaurant and grocery stores (including take out and eligible delivery services), home improvement stores, and select charitable organizations.
After each purChase posts, you have 90 days to pay yourself back. Check the respective box to select the purChase.
Enter the dollar amount you’d like to receive as a statement credit by using some or all of your available Ultimate Rewards points. The Chase Sapphire Preferred redemption rate is 1.25 cents per point, and the Sapphire Reserve is 1.50 cents per point.
After setting the cash value, click “Confirm & Submit” to redeem!
One of the main benefits of Chase Ultimate Rewards points is that you can transfer them out to partners if you have the Chase Sapphire Preferred, Chase Sapphire Reserve, or the Chase Ink Preferred.
You can view credit card offers by going to the "Credit Card Offers" tab. Find offers for the respective cards in "Travel Rewards Credit Cards" and "Business Credit Cards." You don't have to use our links, but we're grateful when you do. Thank you for supporting AskSebby!
Chase Ultimate Rewards transfer at a rate of 1:1. On average, you can get up to two cents per point when you use transfer partners.
If you're looking for the most value possible, then airline partners are the way to go for first class redemption. This also works well for last minute flights.
The way I redeem points for "best value" is hotels because everyone in your travel group can benefit.
For example, if I transfer my Ultimate Rewards points to United:
On the other hand, if I transferred my Ultimate Rewards points to Hyatt:
For the cost of a round trip United Polaris flight to Asia, I can get four nights at a top tier Hyatt property.
Examples:
IHG is not an ideal transfer partner because of the cost of the points, and you typically need more points for a redemption.
In my experience, Hyatt has the best redemption value for transfer partners. The Category 1 Hyatt properties start at 5,000 Hyatt points.
Category 1 = 5,000 Hyatt points / 5,000 Chase UR points
Check out the video below for more redemption ideas.
As you probably know, I’m a HUGE fan of Hyatt. It’s the program where you can get a ton of value. However, you like to travel. Whether that’s Hyatt Place or House on the road, or an Andaz or Park Hyatt somewhere remote. It’s also the program that (usually) likes to upgrade elite members, especially if you have Globalist status.
For our trip to Niseko, we stayed at what many consider to be the best Hyatt in the world. Ironically, many of the other contenders for the throne are also in Japan.
Let’s review everything you can expect from this stay. If you like snow, Niseko is a must-visit destination!
The Park Hyatt Niseko Hanazono is a Category 8 property under the World of Hyatt program.
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In peak season, rooms can cost around 45,000 points per night—a substantial figure, but still an incredible deal compared to the cash rates. Availability can be limited, so planning early is essential. Standard room availability is your best bet for snagging the 45,000-points-per-night rate.
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If you plan to stay three nights, you’re looking at 135,000 points total, rather than $6,200 out of pocket. That’s a remarkable tradeoff if you can secure those award nights.
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To book the Park Hyatt Niseko using points, you’ll need a decent balance in your World of Hyatt account. One of the fastest ways to accumulate those points is through certain Chase credit cards that earn Ultimate Rewards® points. From there, you can transfer directly to Hyatt at a 1:1 ratio. This effectively makes the Hyatt program one of the best redemption options within the Chase travel ecosystem.
The cards that allow you to transfer points to Hyatt include the:
If you have one of these cards, you can move your Ultimate Rewards® points into your Hyatt account. Once the transfer is complete, the points usually appear almost instantly. You can then log in to your Hyatt profile, search for availability at the Park Hyatt Niseko, and book your award stay. Be sure to select “Use Points” when searching for your dates.
From the New Chitose Airport (CTS) in Sapporo, you have a few choices. If you want to keep it simple, the Park Hyatt has a free shuttle for Globalist members. Without status, the shuttle fee is 9,856 JPY per person, per way.
If you don’t have status, I would probably opt for the numerous other bus services. Tons of options in the airport (and you can even book online). Most will run you 5,000 JPY roundtrip, and some might even include a free 1-day lift ticket!
Either way, it’s about a 2.5-hour bus ride with a rest stop in the middle.
The Niseko ski area (”Niseko United”) is divided into 4 resort areas: Annupuri, Niseko Village, Hirafu, and Hanazono.
The Park Hyatt Niseko is at the foot of Hanazono and is a great ski-in/ski-out option with access to two lifts. This means that you don’t need to rent a car for this trip, and you’re minutes from getting skiing!
If your focus is just skiing, you can access any of the other resorts via the ski lifts. You can get to Hirafu as a beginner (via Green runs). Annupuri and Niseko Village are a lot tougher and would require you to be at least an intermediate (via Red runs).
You can also take a bus from Hanazono to Hirafu. The Hyatt has a free shuttle bus that does a loop every hour or so. If you miss that, there are also local buses. If you have a ski ticket, then the local bus is free!
We ended up trying a bunch of options at the Hyatt, including:
Moliere Montaigne is our “must-visit” if you want something memorable and unique 😋
If you’re looking for budget options, you can also get a personal pizza for ~$25 USD.
Alternatively, head into Hirafu, which is the main “town” and busy area. There you’ll find bars, food trucks, burgers, sushi, ramen, and pretty much everything/anything you would reasonably expect.
Hyatt has like <10 food options. Hirafu has over 130 bars and restaurants.
One awesome thing about the Park Hyatt is the room. Even the basic standard rooms are huge!
You have a sofa area (with a pull-out couch), a dining room, and even a 2nd bathroom.
We did end up getting upgraded to a suite due to Globalist status, which had a separate dining room.
Both rooms work pretty well whether you’re just 2 people or you’re a family of 4 (or you’re bringing friends).
Although the site says the maximum room capacity is 4 people, there is a 10,000 JPY fee per day, per additional guest after two people, so factor that into your math!
There are many activities and amenities at the hotel outside of skiing and snowboarding. This includes:
In addition to a bunch of fireplaces, live music, and just areas you can relax.
If you’re staying in during the daytime, there are plenty of windows to sit by to daydream or people watch.
For #teamsnow, each room gets its own locker for skis/snowboards. This makes it really easy to get out there vs. having to lug things from your room.
This is one of the best hotels I’ve ever stayed at.
You have an amazing hard product that feels new and modern. You also have a great soft product with a great staff that goes above and beyond what you would expect.
This, plus the outsized value with Hyatt points and awesome “JAPOW” (definitely some of the driest and softest powder I’ve ever skied on!), makes it a memorable trip.
I usually don’t like to repeat trips after a review (there are too many other places in the world to visit / review), but this place is good enough to be worth an exception.
The average national gas price now exceeds $5 a gallon, and experts predict prices will rise to above $6 during the summer.
A good gas credit card will provide you with cashback and/or reward points for fuel purchases to optimize your spending.
In this article, we will focus specifically on cards that offer consistent cash back or points on gas. While several other cards offer quarterly rotating gas rewards, we’re looking at consistent gas rewards cards to maximize your total gas savings.
While you may not have heard of this card, it has one of the best value for gas rewards at 5% cash back on gas purchases. It also has 1% cashback on all other purchases and a rotating 5% cashback on other categories throughout the year, including streaming services, Amazon purchases, travel, and health fitness.
Although you can apply for the Abound card without becoming a member, the risk is that credit unions tend to remove card benefits when there are too many applicants.
It's usually the way credit union cards work, so this card may not be suitable for everyone.
The Citi Custom Cash card is good choice for a no annual fee keeper card. In addition to 5% back on gas, it also offers 5% cashback on a handful of other categories, including restaurants, home improvement, grocery stores, and select travel. The benefit of the Citi Custom Cash Card is that even if your spending habits change and you spend less on gas, this card can still provide valuable rewards to you in other categories.
It is also flexible in how you choose to spend your rewards. The Citi Custom Cash card rewards are in the form of Thank You points™. This means that if you chose to redeem your points for travel, you could potentially receive more than 5% cash back that month.
The drawback is that there is a $500 per month earning limit on rewards. This means that if you spend more than $500 on eligible purchases during the month, only the first $500 will receive the 5% cashback benefit.
Cardless is a white-label card-issuing service that partners with brands. The Cardless family of credit cards is a series of cards that allow various brands, focusing on American basketball and European football (soccer) teams, to have their own branded, customized credit card.
We’ll look specifically at the New Orleans Pelicans credit card. It offers some great rewards on gas – 4x rewards points with no annual fee and no monthly cap. The 4x rewards work out to 4% cash back since Cardless calculates its rewards points at 1 CPP.
The drawback to Cardless is that you are only allowed to have one Cardless card at a time. So if you already have a Cardless card for your favorite team, you can’t get the Pelicans card to cash in on the gas points. If you are interested in a Cardless card for special deals on your favorite team’s tickets and merchandise, you would be losing out on those things to have a Pelicans card just for gas, so choose wisely.
With the PenFed Platinum Rewards Visa Signature® Card, you earn unlimited 5 points per dollar spent at the gas pump, including EV charging stations. This is among the best rewards rates you will find on gas. Along with free fuel rewards, the card also pays unlimited 3 points per dollar on groceries and 1 point per dollar on everything else.
However, there are a few things to be aware of. For starters, you must join PenFed's credit union to apply. Getting a PenFed membership requires an application and a $5 deposit into a savings account.
The redemption options are also limited, as you can’t use your points to redeem for cash back. A PenFed spokesperson confirmed that points earned with a Platinum Rewards card are usually worth about 0.85 cents each. Considering this card has no annual fee, its redemption value isn’t that great when compared to other no-annual-fee rewards cards.
On the other hand, travel points are potentially worth 1.7 cents each on average, depending on dates and options. There may also be travel booking fees when redeeming for travel.
Another thing to note is that since the PenFed Platinum Rewards Visa Signature® Card is a credit union card, you'll have to keep a close eye to ensure that the points or deals on the card don’t change or decrease.
Credit unions typically make a larger percentage of their income from credit cards and other loan interest than larger banks, so they are more likely to change the terms of their credit offers to ensure that it remains profitable to them.
These cards are designed for buying gas at the respective wholesale clubs. Not only can you take advantage of the discount gas at your club store, but you can also earn cash back with your credit card.
These are both similar cards in terms of rewards level. The Sam’s Club card gives you 5% cash back on gas purchases for up to $6,000 a year, which works out to about $500 per month in gas, and then 1% cashback above $6,000. Depending on your membership level, there may be additional reward caps on earning and redemptions.
The Costco Anywhere Visa® Card by Citi gives you 4% cashback on your first $7,000 in gas purchases in a year and then 1% rewards after. One major drawback is that you can only redeem cash back once per year.
If you aren't already a member of Costco or Sam's Club, these card options might not be for you.
However, if you are already a member, this could be a valuable way to save on your gas budget. The ideal strategy is to get the card for whichever store is most convenient to you.
The Bank of America Customized Cash Rewards Card isn't as competitive as some of the cards on this list, but it still offers decent gas rewards.
With only 3% cashback on gas (or your other chosen rewards category) for most users, it doesn’t look as good as 4% or 5% like some of the other offers we’ve looked at. However, if you are already a Bank of America or Merrill Lynch customer, this might be a good option for you.
Bank of America and Merrill Lynch offer tiered rewards levels for their current customers, so if you have more than $35,500 saved or invested in a portfolio, you will be eligible for higher rewards percentages.
With a bit of research and planning, you may be able to earn up to 5% back (or even more) on gas purchases and other expenditures. To learn more about these top gas cards for 2022 in more detail, check out the video below.
The information related to the Custom Cash® Card has been collected by AskSebby.com and has not been reviewed or provided by the issuer or provider of this product or service.
Editorial Note: Opinions expressed here are the author's alone, not those of any bank, credit card issuer, airlines or hotel chain, vendors or companies, and have not been reviewed, approved, or otherwise endorsed by any of these entities.
Credit card rewards "transfer wealth" from cash users to credit users. If you select the right credit card and use it responsibly, it can be form of couponing.
By using credit cards (that earn rewards), you get the cash back. For example, let’s say a merchant (Walgreens) pays 2-3% in interchange fees to accept your card. In most states, this amount is the same, so that the merchant will increase the product cost.
Consumers who use credit cards get the rewards back, and cash users foot the bill. Per the Federal Reserve Bank of Boston, cash users pay $149/year into this system. Credit card users get $1,133/year from this same system. Keep reading if you want to learn more about how to be on the receiving end of the money.
Side note: If you don’t want to use credit cards but still want to reap the benefits of rewards, I recommend looking into cash back portals. One of the most competitive rates and payouts right now is Rakuten. Here’s a referral link to check them out: https://www.asksebby.com/rakuten
These are generally the starting point for people who are new to this channel. They know they should have a credit card for all the reasons we just mentioned, including building credit and getting some rewards back but haven’t looked into it too much beyond this.
You can usually derive 2-3X more value with minimal work. For example, some 1.5% cards tie into other card setups, but this is generally due to something (a premium card) making it worth more.
These cards are my recommendation for people who want to set it and forget it and use one card for everything.
The Citi Double Cash® Card (1% when you buy and 1% when you pay), Fidelity 2%, and the PayPal 2% Mastercard all fit the bill along with some regional credit union cards. Of these, I recommend the Citi Double Cash because it gives you more optionality.
One of the benefits about Citi is that you can product change between any of their cards when it comes to using it for travel or cash back. For example, the Double Cash can be changed to the Costco credit card.
Regarding travel, the 2% is the baseline value that we use when comparing cards; we want it to pass the 2% hurdle rate.
The Citi Double Cash card is a great example of making a travel card work for you with up to 4% cash back for advanced redemptions like business or first class.
These types of cards are for people who spend a lot of money at specific places. Cash back is cash back here, so generally, there are no additional reward options. The goal here is to find cards that offer at least 3% back. You want your cards to work for you.
There are three sub-types of cards in this category:
An example of a payment method type of card is Apple Pay. Apple gives you 3% cash back when using Apple Pay at places like Apple, Walgreens, Duane Reade, Nike, Uber and Uber Eats, and Exxon, to name a few.
For people who have expensive medicine, 3% cash back at Walgreens can be huge. By the same token, if you spend a lot of money on Apple products, this is a great option.
The Amazon Prime card is a great example of an extremely competitive 5% cash back for high Amazon spenders or frequent Whole Foods shoppers.
If you’re someone who buys a lot of electronics or cameras, B&H is worth considering because it can cover the tax amount at 8.5%. That’s a lot of savings on a $1000 camera lens!
Be careful with this; avoid getting cards for places you don’t spend a lot of money or don’t see yourself using in the future.
Specific Categories Examples:
The benefit here is that you are not locked into a specific store. You can go to Trader Joe's, Safeway, and Whole Foods, and any restaurants or gas stations, etc.
For a lot of these cards, there are annual fee versions as well. The American Express Everyday Preferred and the Blue Cash Preferred are good examples of cards with various annual fees.
To see which card is the best for you, do a simple break-even calculation. Ignoring all other multipliers, for example, if your supermarket spending is $3,167, you are impartial to either card. If you spend more than that, the Blue Cash Preferred has the better value.
Lastly, make sure these cards cover the bases that you need covered. If you only cook at home and your restaurant spending is low, or if you don’t have a car, these might not be the best cards for you.
This is the setup I recommend for lower spenders using the U.S. Bank Cash Plus and Chase Freedom Flex® cards. The U.S. Bank Cash Plus lets you pick two categories where you can earn 5% cash back on up to $2,000 spend per quarter.
There are lots of categories to choose from, and I’ve seen this played in two ways.
First, pick a category that you consistently spend a lot of money on. (The same idea as Tier 3 but covers two categories.) Electronics are an easy example here.
Secondly, use this card for items you don’t usually purChase but could have a spike in spending throughout the year.
For example, buying new furniture, a new cell phone, sports equipment, or back to school shopping.
The Chase Freedom Flex is the other major pick in this category, and this is for the potential upside of earning 5x cash back on up to $1,500 in combined category purchases each quarter you activate.
Similar to the Citi Double Cash, this can be worth twice as much (10% cash back) if you decide to switch to a travel set up. The fact that you have a good 5% baseline and huge optionality with this card is a great benefit.
If this is confusing, or you have a Player 2 that always uses the wrong card, I would invest in a label maker. It takes 30 seconds of work every 3 months to help clarify which card to use and when.
Tier 2 is also the best spot for most cash back people who are low to normal spenders who want to maximize their card's value.
The card systems in Tier 1 have the most upside, but almost always have something that makes it hard to justify.
We'll quickly go through these, but I could make a dedicated post for each.
Here you’ll earn Membership Rewards (MR) points from the American Express® Green Card, American Express® Gold Card, and the The Blue Business® Plus Credit Card from American Express. Then, cash them out using the Schwab Platinum card for 1.25 cents per point (CPP).
The main disadvantage here is that you generally need a pretty sizeable spend to justify this setup long-term. There are also a lot of annual fees involved; generally $800-$950 per year. But there are also many credits that help subsidize these fees, like the $200 annual travel credit. Terms apply.
This is generally the setup I recommend to people who have a lot of work spending, or for someone who only takes one short vacation per year and they can’t use all of the points anyway.
In this instance you might as well cash out the points into your brokerage account.
The main disadvantage here is that you need $100,000 in your Bank of America account or Merrill Lynch brokerage account. With this setup you get a 75% rewards bonus on Bank of America cards.
That means the 3% Cash Rewards is 5.25% cash back on a pretty wide range of things like gas, online shopping, dining, travel, drug stores, and home improvement.
There are spending caps, but people who run this setup get multiple cards or product change to different cards.
This is new for 2021, mostly because Chase added the Pay Yourself Back program. With this program, you can redeem your points for additional value; 25% or 50% boost for everyday purchases. This sounds good on the surface, but there are some disadvantages.
The main disadvantage is that Chase picks the categories, so we don’t know if it will stay as groceries or switch to gas, for example.
You’ll also likely need a decent spend or multiple Freedom or Freedom Flex cards for it to work well. To take advantage of the additional credits, it’s a good idea to commit to a little bit of travel for this setup to be beneficial as well.
The information related to the Custom Cash® Card, Citi Rewards+® Card, and Citi Double Cash® Card has been collected by AskSebby.com and has not been reviewed or provided by the issuer or provider of this product or service.
Editorial Note: Opinions expressed here are the author's alone, not those of any bank, credit card issuer, airlines or hotel chain, vendors or companies, and have not been reviewed, approved, or otherwise endorsed by any of these entities.
Building a strong foundation of credit cards is essential for a healthy credit score. In this post, we’ll walk through the first 5 credit cards to consider if you’re starting out in your credit journey.
A few guidelines:
Since Chase typically likes to see at least 12 months of personal credit history, your first credit card should be a student credit card (if you qualify), a starter card, or a secured card.
I strongly recommend picking a card that does not have an annual fee since you should plan on keeping the card long-term. This card is the foundation of your credit card history, and the last thing you want to do is cancel your oldest card due to the annual fee.
Capital One, Bank of America, and Citi have good beginner card options.
After holding credit card #1 for at least 12 months, I recommend going for a Chase Freedom Flex or Chase Freedom Unlimited to start building a credit relationship with Chase.
I’ve seen people get approved for a Chase card with less than 12 months of credit history, but they usually have a higher income ($80k+) or other credit mixes.
Chase starter cards:
If you have a lot of miscellaneous expenses like home improvement, taxes, or tuition, I recommend going for the Freedom Unlimited.
You can product change between the Chase Freedom Flex and the Freedom Unlimited.
Depending on what your income is and if you have plans to travel, I recommend going for either the Chase Sapphire Preferred or the Sapphire Reserve.
Wait at least 3 months of having the Freedom card before applying. If you apply sooner, it could raise flags due to the velocity of card applications.
The following rules apply to the Sapphire cards:
Since the Chase Sapphire Reserve is a Visa Infinite card, you need to have the ability to get approved for a minimum of $10,000 credit line. I recommend having an income of at least $35,000+ to increase your chances of approval.
If you don’t have plans to travel in the near future or you value Chase travel partners, I suggest going for the Chase Sapphire Preferred. The Sapphire Preferred has a higher intro bonus of 100,000 points, and a lower annual fee.
Worst case, you can cash out the 100,000 points for a net $905. After a year, you can product change the Sapphire Preferred to a Sapphire Reserve.
Chase business cards do not count towards Chase 5/24, but they’re affected by it. You must be at 4/24 or under to get approved for a Chase business credit card.
If you qualify for business credit cards, I recommend adding them here.
You can qualify for a business credit card if you generate any type of income outside of your full-time job. Examples would be tutoring, rental income, selling online, or babysitting. Depending on the state you live in, you could qualify as a sole proprietor.
Chased on your travel goals, I recommend filling in slots #4 and #5 with the remaining Chase credit cards that are on your list.
A strong hotel keeper card that I’ve kept long term is the The World of Hyatt Credit Card since redemption nights start at 5,000. You also get a free night certificate each card anniversary.
A few other cards worth considering:
Pick the cards based on your airline or hotel preferences.
If you are not a fan of Chase or you’re not eligible for Chase credit cards, I recommend going for Capital One first since they’re inquiry sensitive.
Barclays has a soft 6/24 rule that is not always enforced. If you open more than 6 credit cards in the past 24 months from any credit issuer, then you’re likely to get denied.
Barclays credit cards worth considering:
Although some of the Barclays cards have no annual fee products in the same family tree, some people have had trouble requesting a downgrade. I recommend building a strong foundation of cards first before moving on to Barclays.
American Express is not sensitive to velocity or inquiries, so I would save Amex cards as the last cards you get.
Important note: I do not recommend getting an Amex card with an annual fee as your first credit card. If the Amex card does not have a no annual fee downgrade path, and you choose to cancel in the future, you lose the credit history.
For people with a lot of assets with Bank of America, I suggest checking out our post on the Bank of America Duo to maximize your points: https://www.asksebby.com/blog/bank-of-america-duo-credit-cards-for-high-net-worth-individuals
One of the best first-class products you can book with points or miles is All Nippon Airways (ANA) First Class. Even better, it’s a great use of points.
There’s a few methods to do this depending on the points currency you have, one of my favorite choices are using Virgin points.
ANA is a partner with Virgin, and they operate based on an award chart:
For example:
Hawaii to Tokyo would be 37.5k for business and 57.5k for first class.
SFO or LAX to Tokyo would be 52.5k for business class and 72.5k for first class.
From JFK or ORD to Tokyo, you’re looking at 60k for business and 85k for first class.
Virgin is a transfer partner of all the major bank currencies (Chase, American Express, Capital One, Citi).
To do this redemption, you would transfer from Chase to Virgin points and then call in to redeem the flight.
Finding availability can be tough, and you generally need to look months in advance or be willing to fly last minute.
There’s a lot of tools you can use, my favorite is seats.aero:
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Doing a search today, Nov 3, 2024, and we see availability through Virgin (Velocity) for Nov 13 and Nov 19, but this would be through Hawaii.
Pro Tip:
Do NOT transfer points until you’re ready to book. Having it as a bank currency gives you more flexibility.
If you find availability that works for you, and you’re ready to book, then:
If you’re looking for more availability, there are other program options as well that can work such as Aeroplan or directly with ANA.
There are other ways to book ANA First class, but Virgin Atlantic tends to be the best option:
Note that availability can be challenging to find, especially for multiple passengers. ANA usually only releases 1-2 seats in First Class for each flight. Even though there are 8 seats in the First Class cabin, it’s not unusual for it to fly at lower capacity (i.e., only 1-4 passengers, despite 8 seats).
Have you ever found yourself stuck in a chaotic airport, looking for an escape? Imagine your credit card being your golden ticket to an oasis—or at least to free food and drinks. Plenty of options range from airline-specific cards (i.e., Chase United Club) to bank-specific ones (i.e., Centurion Lounge via The Platinum Card® from American Express).
Terms apply to American Express benefits and offers. Enrollment may be required for select American Express benefits and offers. Visit americanexpress.com to learn more.
If you want to avoid committing to an airline or a bank network, one of the most popular options is Priority Pass, a network of over 1,500 lounges.
Some lounges included in the Priority Pass program are operated by specific airlines, such as Air France-KLM, British Airways, or Turkish Airlines, while others are independent and not linked to any airline. I recommend double-checking the Priority Pass website before heading to the airport!
There are plenty of cards that offer Priority Pass lounge access, but many will limit you based on the number of visits or guests.
These are our top 5, given that they allow for unlimited visits:
First on the list is one of the best cards available right now: the Capital One Venture X. It comes with a $395 annual fee, but it's the only card on this list that I would consider overpowered or S-Tier due to its superpowers.
The Venture X offers a $300 travel credit and 10,000-anniversary miles worth at least $100 in travel, totaling $400 in value. This essentially gives you a -$5 effective annual fee, making it a positive value for most people.
Capital One has its own lounges, and while they are expanding slowly, they offer some of the best lounge coffee and cocktails I've experienced. The Venture X also provides free access to Plaza Premium Lounges for you and two guests per visit.
It also comes with a Priority Pass membership that allows unlimited guests, making it one of the best memberships available. You can also add up to four authorized users for no additional charge, and they receive their own Priority Pass cards, with the same unlimited guesting privileges.
If you're debating the Venture X, we have a calculator here.
Pretty much the same as the personal version, but this is a business card.
It's well worth considering if you're a business owner.
The Chase Sapphire Reserve® is a long-standing favorite with a $550 annual fee and a $300 travel credit, resulting in a $250 effective annual fee. This card offers Priority Pass access for you and two guests, along with access to Chase Sapphire Lounges. If you have Priority Pass through other cards, you only get one visit to Chase Sapphire Lounges each calendar year.
With a $695 annual fee, you get up to $1,400 in credits to help offset the cost:
This totals $960, making it a strong contender for value. Terms apply to American Express benefits and offers. Enrollment may be required for select American Express benefits and offers. Visit americanexpress.com to learn more. See Rates and fees.
In terms of Priority Pass, it's you + 2 guests.
The benefit here, though, is that you have a lot of options beyond this if you are a frequent traveler. This includes American Express Centurion Lounges, Delta Sky Clubs when flying Delta, Plaza Premium, Lufthansa, Escape, and a host of other options. However, you must meet the respective lounge's requirements to bring a guest.
If you're debating this card, we have a calculator here.
Terms apply to American Express benefits and offers. Enrollment may be required for select American Express benefits and offers. Visit americanexpress.com to learn more. See Rates and fees.
The Marriott Bonvoy Brilliant® American Express® Card is another interesting pick. It's a hotel keeper card but also offers Priority Pass. With a $650 annual fee, you get:
Terms apply to American Express benefits and offers. Enrollment may be required for select American Express benefits and offers. Visit americanexpress.com to learn more. See Rates and fees.
If you're a city traveler, you'll break even with the credits and the Free Night Award. For aspirational travelers, you might come out ahead, making it a keeper card.
This card comes with Priority Pass that works for airport lounges and allows entry for you and two additional guests.
For most people, the best bet in terms of access and value is the Capital One Venture X (and the same goes for the business variation). However, there is also an argument for the Chase Sapphire Reserve® if you're in their ecosystem.
If you want a stronger lounge footprint beyond Priority Pass, The Platinum Card® from American Express is great for frequent travelers.
If you're looking for hotel cards, the Marriott Bonvoy Brilliant® American Express® Card is a great option that comes with Priority Pass as an added bonus.Have you ever found yourself stuck in a chaotic airport, looking for an escape? Imagine your credit card being your golden ticket to an oasis—or at least to free food and drinks. Plenty of options range from airline-specific cards (i.e., Chase United Club) to bank-specific ones (i.e., Centurion Lounge via The Platinum Card® from American Express).
Hilton recently updated the list of hotels that qualify for the Hilton Resort credit for their co-branded credit cards, and some people are NOT happy.
The new list (as of Sep 2024) includes 256 options and it’s actually a bit counter-intuitive (at least to me!).
You would think the resort credit would primarily be for their premium brands, but that doesn’t seem to be the case.
Affordable chains like Hilton (39.1%), DoubleTree (14.1%), and Curio (13.3%) make up the lion’s share of the options.
Luxury brands like Conrad (5.5%), Waldorf Astoria (5.1%), and LXR Hotels (3.5%) represent a comparatively small slice.
One of the biggest complaints is that you must go to exotic destinations to use the credit, but that doesn’t seem to be the case.
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Almost half (47.7%) of the resorts are going to be in the United States, with other countries like China (5.5%), Mexico (5.1%), and Japan (3.5%) having significantly fewer options.
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Unsurprisingly, the majority of which are in Florida (35.2%). Hawaii (12.3%), California (11.5%), and Arizona (9.8%) are the next 3.
For many hotels, the credit effectively covers a night:
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With the new list, there’s some options that no longer work.
All information about the Hilton Honors American Express Aspire Card has been collected independently by AskSebby.com.
The Hilton Honors American Express Aspire Card has a hefty $550 annual fee, but if you're a Hilton loyalist and travel often, then the benefits can outweigh the annual fee.
These perks include up to $400 in annual Hilton Aspire resort credit, making it a great keeper card for anyone who frequently stays at Hilton Honors properties throughout the year.
Receive up to $200 in statement credits twice a year, totaling up to $400 annually, when you make eligible purchases directly at participating Hilton Resorts with your Hilton Honors American Express Aspire Card.
Source: https://www.hilton.com/en/hilton-honors/resort-credit-eligible-hotels/
Amazon Prime Day is here!
Here's a list of deals for products I actually use.
Electronics:
Pantry Staples:
Check if you're targeted for discounts by adding your card from different issuers, add the promo code, and complete checkout with a card from the respective credit issuer.
Citi: Use promo code 24CITIPD to get $15 off eligible products that total $15.01 or more.
Get a targeted 40%/$60 Discount When Using 1 American Express Membership Rewards Point
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Have you ever applied for a credit card only to be told you don’t qualify? It can be frustrating, especially if you’re not sure why. That’s where CardMatch comes in.
CardMatch is a tool offered by CreditCards.com that helps you to match yourself with credit card offers from multiple issuers based on your credit profile. It’s quick, easy, and, best of all, free!
CardMatch is a tool that allows you to compare credit card offers from multiple issuers in one place. All you need to do is provide some basic information about yourself, including:
From there, CardMatch will generate a list of pre-approved and special offers tailored specifically for you in less than 60 seconds.
One of the best things about CardMarch is that it’s completely free to use. There’s no obligation to apply for any of the cards you’re presented with, so you can shop around without worrying about damaging your credit score.
Note that since these are targeted offers, not everyone will have the same results. CardMatch may also not have all cards currently available on the market.
