When I first immigrated to the United States, the first thing I did was open a credit card in my name. Since I had no credit history, I had to apply for a Citi card with a $400 security deposit that was refundable after a year of consistent payments. I did it. It took a while for my credit score to go up to reasonable levels, but patience paid off.
I started getting offers from other credit card companies. The offers got better the better my credit score got. I soon was eligible for most credit cards, and finally I could pick and choose which points or reward program to participate in.
Growing up in Belarus, I have not seen much credit being used there. Mostly purchases were paid in cash, and when I was in college, the debit cards finally appeared. This allowed me to learn never to rely on credit, so when I moved to the US, I paid off all my credit cards on time and in full. If I knew I would not be able to pay the credit card in full, I would not buy the item or service until I could.
Now onto credit cards I use most frequently that allow me to use rewards to pay for some of my adventures. I heavily rely on credit cards that pay out rewards in cash. I know that cards that have miles as their rewards mechanism work really well, but for me personally, I just like to have that cash.
I have several credit cards with which I purchase different categories of things.
One of my favorite credit cards that I use is Chase Freedom that offers 1.5% cash back on every purchase. I use it for everything, but groceries, gas and online purchases. My car and health insurance go on this card.
For groceries I use my American Express Blue Cash Everyday card that offers 3% cash back. At times, my Wells Fargo card also has some temporary rewards for grocery shopping, but it is not very consistent. I use Wells Fargo Propel for gas as it gives me 3% as well.
I also have a Bank of America card that has different categories you can pick from to get 3% cash back. You can switch it back and forth, but I keep mine on "Online Purchases", so everything that I buy online gets 3% cash back. Speaking of online purchases, I buy most of stuff on Amazon, so I use Amazon credit card that gives you 5% cash back. The only caveat is that the redemption minimum is $50 instead of typical $25.
Finally, I also had a Discover card that alternates their 5% rewards categories every quarter. For example, right now through the end of March the 5% category is Grocery Stores, Walgreens and CVS.
None of these cards have annual fees. I know there are some travel cards like Chase Sapphire that offer good into miles, but I don't fly enough these days to take full advantage of that. I will be considering this card once we are past the pandemic. In the meantime, I use Wells Fargo for my travel and car rental that offers 3% cash back.
Regardless what credit cards you use, I highly recommend paying them off monthly to avoid any interest rate fees. This will allow you to take full advantage of the point system.
I also use sticky notes for those credit cards that change their rewards categories or offers frequently to maximize cash back. Through my Chase Freedom alone I paid for gift cards, travel tickets and general purchases many times. I really should get into the "miles" game, but have not had the time to read through the TPG Beginner's Guide by The Points Guy.
*By applying for credit cards through some of the links, both you and I may get rewards.
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