Part 5: Meeting the Spending Requirements
Part 6: Taking Care of Credit Reports
Part 7: Conclusion
Choosing a card is a very subjective decision since it depends on one's needs. For the sole purpose of churning cards while having a limited credit, consider these factors:
- Get a card that you can actually keep for a long time
- Get an AMEX first, others later
Creditors like to see AMEX. You are more likely to get approved to other cards if you have one. AMEX charge cards are easier to get approved than regular credit card.
- Apply for 2 cards from the same issuer on the same day
When you apply for 2 cards from the same issuer on the same day, chances are 2 credit pulls will be combined into one. With some exceptions (e.g: Chase will automatically decline your 2nd application), you have nothing to lose when you apply for the 2nd card.
Here are some cards I recommend:
- Chase Sapphire Preferred Card (SP)
In my opinion, one of the best travel cards available: 2 points for dining and travel (air ticket, car rental, etc), 1 points for everything else, no foreign exchange fee, great customer service. I love its design since it's made from metal and the number is in the back. Points can be transferred to several programs such as United, Hyatt, etc. Current public offer: 50,000 points after $3k spending in 3 months. I don't recommend this card if you have less than 1 year old credit history though.
2. AMEX Zync
An easy card to get approved. There are several packages for you to choose, however I don't recommend the additional fee ones since they have a very low 6,000 points cap/packages. All transactions earn 1 point/dollar, with bonus if you have the packages. Some packages are very interesting (e.g: earn points for volunteer work). A good card for low spenders. Be aware that this cards gives you Membership Reward Express, which you cannot transfer to other airlines programs. However, if you own a MR AMEX (Green, Gold, etc), these points will become regular MR points. Current public offer: 10k points after first purchase, $25 annual fee. A better bonus (10k points and no annual fee first year) is only available through referral, so leave a comment below if you are interested.
3. AMEX Starwood Preferred Guest(SPG)
Starwood points are very valuable. You can easily get 4-5 cents/point with Point & Cash redemption. Not only that, you can transfer 1:1 ratio to a lot of airlines. Every 20k points transfer they will give you an extra 5k! Earn 2 points per dollar at Starwood properties, 1 points for everything else. Be aware that this is a credit card so it has a firm limit and it's harder to get approved as well. Current offer: 25k points after $5k purchase in 6 months.
4. AMEX Premier Rewards Gold (PRG)
The most rewarding MR card: earn 3 points on airfare, 2 points on groceries and gas, 1 points for everything else. MR points can transfer to other airlines programs. Current offer: 25k after $3k in spending in 3 months, no annual fees first year. Not hard to get approved.
A word of caution: I wouldn't apply for AMEX PRG now since the offer is very weak. I would wait for a better one(50-75k points sign up bonus).
To take advantage of all of your cards, use them based on your purchase types. For example: Use PRG for gas, SP for dining, Zync at "green" store (e.g: Trader Joes, etc) and SPG for everything else. This will maximize your earning power and get the most our of your spending.
Notice: this post is entirely my own opinion. I am not an certified financial advisor. Do at your own risk. I am not affiliated with any credit card company nor do I earn any commission (except for the AMEX Zync referral, which I earn 5,000 MR points if you get approved).
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