My 3 Favorite Credit Cards

I love credit cards. I don’t think I can say that enough.

I think too many consumers:

(1) Blame credit cards for their behavioral problems

and

(2) Don’t put enough thought into the credit card they use

Today, I want to assist with #2.

As I have stated in the past, credit cards are a great spending tool, not a borrowing tool. When used correctly, credit cards can be very rewarding. When used incorrectly, credit cards can be very damaging.

If you have gotten into trouble in the past, either because…

1. The interest rate was too high
2. You couldn’t afford the minimum payment, or
3. You could never manage to pay down the balance

…then, you’re doing things all wrong.

Credit cards should be paid off in full every month, so the interest rate is irrelevant. If you cannot pay off the balance in full each month, then you need to rethink your purchases. If you’re using the credit card for necessities, then you need to rethink your entire situation.

If you are a responsible consumer, then I want you to continue reading as I highlight my 3 favorite credit cards. I purposely chose the word “favorite” over “best” because there are other great credit cards that COULD be better for you. If you travel a lot, then maybe accessing airport lounges are important to you. My “favorite” credit cards represent what I think are “best” for most people.

If I was a really smart blogger, I would use an affiliate code so that I get paid off of my credit card recommendations. But since I’m a terrible blogger, I am receiving nothing by presenting these credit cards to you. These recommendations are completely unbiased.

Blue Cash Preferred Card from American Express

• 6% cash back at U.S. supermarkets (up to $6000/year)
• 3% cash back at U.S. gas stations and select department stores
• 1% on all other purchases
• $150 reward dollars after spending $1000 during first 3 months
• Annual fee: $75

Why it’s awesome:

You can buy gift cards at grocery stores and earn 6% cash back. You can shop on Amazon.com and receive 3% as it’s considered a department store. Also, American Express arguably has the best customer service.

BankAmericard Cash Rewards Credit Card

• 2% at grocery stores and 3% on gas for the first $1500 combined grocery and gas purchases each quarter
• 1% on all other purchases
• $100 cash reward bonus after spending $500 in first 90 days
• No annual fee

Why it’s awesome:

In addition to the 3/2/1 rewards, Bank of America also has something called BankAmerideals. Bank of America will present you with Cash Back Deals based on where you live and where you spend. For instance, you can receive 10% cash back from the local coffee shop. You can receive 15% cash back from fancy restaurants. The deals are customized for you so you should find them very useful.

Chase Sapphire Preferred Card

• 2X points on travel (airfare, hotels, rental cars, taxis, etc.)
• 2X points on dining (restaurants, fast food, etc.)
• 1 point for all other purchases
• 7% annual points dividend (bonus on top of all of the points you have earned throughout the year)
• No foreign transaction fees
• 40,000 bonus points after spending $3000 in first 3 months
• Annual fee: $0 first year, then $95

Why it’s awesome:

This card is great for travelers and is loaded with benefits. The 40,000 bonus points can be redeemed for up to $500 in travel rewards.

Summary

There are A LOT of great credit cards. Before choosing one, do a quick analysis to see where you do the bulk of your spending and which card will be the most rewarding.

Spend wisely.