Credit Card Acquisition Timeline
So you seem to understand how credit cards work and what options are in front of you. Now comes implementation; when should you get which card? Well, the answer will differ from person to person, but we tried to dumb it down and provide our thoughts for the “average person.”
The most important thing before jumping into the credit card game is to make sure you can pay off your entire balance every month. Credit cards become bad investments / expensive over time if you accrue a balance and have to pay a higher interest.
Level 1: Starter cards for building credit
Start with a $0 annual fee card from your bank or the main providers.
These are usually going to be your basic “cash-back cards” which will help you build your credit and practice paying off your balance every month.
If you do not currently hold a credit card, start here!
Our Favorite are the Chase Freedom unlimited, CapitalOne Savor One, and Discover it
☆ Check out our in-depth article on Starter cards!
Level 2: Rewards cards for points
Think of these as your “starter card upgrades”, your “everyday cards”
Stick to a family, there is generally not much gained when getting cards from multiple families i.e. a Chase card + Amex card
These are your daily rewards cards, ones that give you 2x or more points on all purchases. I recommend these daily cards are Amex, Chase, or Capital One, given their premier travel portals and transfer partners
Our Favorite are the Chase Sapphire Preferred, CapitalOne Venture, and Amex Gold
☆ Check out our in-depth article on Everyday cards!
Level 3: Premium Cards for benefits & perks
Once you are comfortable with annual fees and your everyday cards, look into upgrading to a premium card.
These premiums cards have heavy annual fees but often offer enough rewards and perks to offset your cost.
These cards often come with lounge access, travel credits, status matching on hotel and car rentals, etc. and include hefty Sign-up bonuses
Our Favorite are the Chase Sapphire Reserve, Amex Platinum, and CapitalOne Venture X
☆ Check out our in-depth article on Premium cards!
Level 4: “Other Cards”
Travel Cards for frequent flyers + Hotel Cards for travelers + Rent Cards + more.
If you see yourself flying a lot, you can sign up for an Airline card and utilize the sign-up bonuses to help achieve airline status quickly. Signing up for these cards early in the year can help you get status quicker. The same thought process is true for Hotels.
There are Credit cards that allow you to earn points on rent.
Amazon offers a credit card which gives users 5% on any Amazon orders.
☆ Check out our in-depth article on Other cards!
Level 5: Business Cards for Entrepreneurs
The last and final tier of credit cards are business cards:
Any entrepreneur can put their expenses on a credit card and earn rewards!
Business CCs have hefty signup bonuses and can be an easy way to benefit from something you were doing anyway.
Dont’t have a business? You can still sign up for one of these cards!
☆ Look out for a blog post specifically about Business Cards in the near future.
Key Takeaways:
Everyone is different, take these reconditions as examples only
Starter cards are where most people should start and work there way up once their credit score improves
Reward cards are your everyday cards and should be used as the primary
Travel / Hotel / Other specific cards are great for earning points on unique expenses derived from the credit card issuer. Don’t leave free points on the table!
