What’s In My Wallet: My Credit Card Strategy (2022)
Every 6 months or so, I take a look at the credit cards I’m using and see if there is a way I can optimize for better spending. I do this because I love to collect points for my purchases that I can later use for nice vacation trips.
I’m sure you would love to do the same, or at least collect some cash back rewards. This is why I’m going to be transparent with you about the cards I personally use (free and paid).
I use different cards for the different categories of spending in order to maximize the number of points I earn. For instance, I use one card for dining out and a completely different one for travel.
Here is a look at all the credit cards I use to collect points throughout the year.
Category: Groceries & Dining Out
When it comes to buying lunch during work, eating out with my girlfriend, or the rare occasion of me buying something from a supermarket, I only use the American Express Gold Card. It is my absolute favorite card ever!
It allows me to earn 4X points at restaurants, take-out, and supermarkets. You can also earn 3X points when you book flights with the American Express travel portal or directly with airlines.
The card costs me $250 per year. However, it is offset by the uber monthly credit of $10 and the dining monthly credit of $10. Theoretically, if used correctly, this card should only cost about $10 annually.
Based on my usage for 2021, the card only cost me $25 after using the monthly credits.
Did I mention that it's also a metal card? 😉
Category: Travel
I have not been traveling much lately, but I recently added the amazing Capital One Venture X credit card to my wallet.
This is a premium travel card with an annual fee of $395. However, annually, you will receive a $300 travel credit and a $100 annual anniversary credit. By doing some quick math, you will see that Capital One is actually paying you $5 to get and keep this card.
This card allows me to earn 10X miles on hotels and rental cars and 5X miles on flights when booked through the Capital One travel portal.
The reason why I love this card is that it has so many insurance and protections that I always feel confident shopping when using it.
For instance, if I need to rent a car, I won’t get rental insurance as the card already covers me for it. If I damage an item I bought within 3 months, I’m eligible for reimbursement under the card’s purchase protection.
It also comes with a complimentary priority pass for you and your authorized users. Priority Pass allows you to get into airport lounges for free so that you can be away from all the chaos and actually have time to sit, relax, and eat something for free before your flight.
It is also a metal card (definitely not a reason to get a credit card, though).
Category: Rotating Categories
There are a few credit cards on the market that offer high rewards for rotating categories. What this means is that every quarter (3 months), you will be rewarded for different spending.
For example, for one quarter you may get rewarded for Amazon purchases, and then the next quarter you can collect rewards for gas purchases.
I personally use the Chase Freedom Flex for this purpose. This quarter, they are offering 5% cash back on Amazon purchases and streaming services.
This is a great card to have as it has no annual fee and the rotating categories are actually good.
Sadly, it is not a metal card 😔
Category: Non-bonus Spend
If I need to spend on something that does not fall under bonus categories, I either put it on my Venture X or the American Express Blue Business Plus.
The Amex Blue Business Plus is a $0 annual fee card that gives me 2% back on all purchases regardless of category.
It's very simple and straight to the point. You should always aim to earn more than 1% on any purchase.
An alternative to this card is the Citi Double Cash Card.
Have a great week!
Muhamed
📖 Quote of the Week
Your competitor is smarter, more talented, or experienced, you simply need to work three or four times as hard. You can still beat them!
From The Compound Effect, by Darren Hardy