My Rich Nerd,
Choosing a credit card based on how it looks or a 30-second TikTok is an easy way to miss out on amazing benefits and lose money. So, let’s rank six popular credit cards based on their fees, rewards, and benefits. Plus, a huge mistake even savvy credit card users make regularly.
🍎 Apple Card
S-tier! Is what I would say if I had no self-respect.
The physical card earns 1% cash back, but you get 2% with Apple Pay and 3% at Apple and select merchants, with conditions. There’s no annual fee, and occasional referral bonuses are available.
Unless you’re a big Apple user, I’d choose another card.
F-tier.
🌳 Amazon Prime Visa
No annual card fee, a $150 Amazon gift card upon approval, and 5% back at Amazon and Whole Foods with an eligible Prime membership.
If you already pay for Prime and shop on Amazon regularly, it makes sense. Just remember that Prime membership costs extra.
C-tier.
🔍 Discover it Cash Back
A good option for getting started with cash-back rewards, if you qualify.
No annual fee and 5% back on rotating categories, on up to $1,500 in combined purchases each quarter after activation. Other purchases earn 1%.
Discover also matches your first year’s cash back. Just remember to activate the categories each quarter.
A-tier.
💍 Amex Platinum
We help people with their finances for free during our livestreams, and many want this card for the status. They haven’t checked whether the benefits fit their lifestyle.
The annual fee is $895. It can be worth it if you regularly use the travel benefits and credits. If you don’t, that’s a lot to pay for a card.
D-tier for most occasional travelers.
🏃🏾Chase Sapphire Preferred
My wife and I used this card’s rewards to pay for most of our trip to Korea.
Here’s what it offers:
75,000 welcome points after spending $5,000 in the first three months, subject to eligibility.
Up to $100 in hotel credits each account anniversary year for bookings through Chase Travel.
Up to $120 toward Global Entry, TSA PreCheck, or NEXUS every four years when you pay the application fee with the card.
$95 annual fee.
If you use the full hotel credit on a trip you already planned, and the booking price is competitive, it can cover the annual fee.
Easy peasy S-tier.
🏦 Wells Fargo Active Cash
I’m not a fan of Wells Fargo, Chase, or Bank of America as banks. But this card is useful.
2% cash rewards on purchases, no annual fee, and up to $600 in eligible cellphone protection when you pay your monthly phone bill with the card. There’s a $25 deductible, and coverage limits apply.
A straightforward option if you don’t want to track spending categories.
B-tier.
⚠️ Avoid These Common Mistakes
Choosing a credit card because it’s made of gold, platinum or adamantium
Choosing a credit card because you want to impress people
Making the minimum payment. Set up auto-pay and select “statement” or “total” balance so it gets paid off in full every month.
The best credit card is the one that fits YOUR lifestyle.
Let us know what your favorite card is!
Thanks,
Imran
