So I read through the whole "which credit card do you use" thread and I've narrowed my search down to three cards. I'll be starting as an analyst in a few weeks and figured I should get my own card (one that isn't paid off by my parents - I only ever used it for groceries and airfare to come home).
The three cards I'm debating are:
1. Chase Sapphire
2. AmEx Blue
3. AmEx Blue Cash Everyday
I'm not exactly sure how cash back works. Do you just get a check in the mail at the end of the year?
Would it be better to have a rewards program vs. just cash back?
Which rewards program would be better? Chase's or AmEx's?
How often and on what do most people redeem their points? Small things or do you wait for the big stuff?
I also wanted to make sure that those amex cards are in fact credit cards and not charge cards as I want to build my credit.
Any advice and input is appreciated. And please let's not start the "just use cash instead" argument again, it was a pain reading through all of that.
Thanks
Amex are charge cards but I'm not sure about blue and zync, those might be credit
It really all depends on what you want. Amex recently changed its bluecash policy to allow people to receive a check anytime they want instead of just applying it to your bill once a year. It depends on what you want, airline cards are great if you travel a lot and want to build status for potential upgrades, etc. Cash back is nice if you are doing a lot of spending at places where you would receive more cash back. Be careful as well as a lot of cards have yearly fees or other hidden items, such as some amex cards specifically require to be paid off every month.
Points and cash are usually a wash, because you can use points to get cash back. I would look for the best interest rate, etc.
I plan on paying it off in full every month so it really won't be an issue
Fidelity (FIA/Bank of America) Amex. 2% cashback on all purchases FTW. No annual fee. Just note that FIA requires a FICO score of at least 700. They also issued a Charles Schwab 2% Cashback VISA a few years ago, but that is gone now.
If you travel by air a lot, and Delta has good coverage of the destinations you want to go to (IE: your family is in Atlanta or Minnesota), you may want to check out the Delta cards. Some of them qualify you for frequent flyer status on Delta if you spend enough money; others will let you check bags for free.
Wouldn't I need a fidelity account for that?
You would, but they are probably one of your firms' designated brokers.
I concur with IP's suggestion of the Fidelity AMEX. 2% cashback on any purchase is unbeatable. The catch is that to convert your points into cash at a 2% rate, you need to deposit that cash in a Fidelity account, usually a brokerage account. However, you can also set up a Fidelity mySmartCash account, which is essentially a checking account. So no need for a minimum investment contribution like the brokerage account. Plus you can withdraw from almost any ATM and Fidelity will reimburse you for it.
In addition, I would recommend using the Citi Forward card. You get 5 points for purchases on at restaurants, book stores, music stores, movie theaters, and video rental stores AKA everything that young people usually spend on. The bonus is that many bars are classified as restaurants and also Amazon is (as last I heard) considered a bookstore. The points can be converted for a 1:1 if you use them via their site and redeem for flights. DO NOT convert your points into cash back as you get a horrible conversion rate for them.
So if you use the cards together, you get 2% back on every purchase, plus 5% back on every purchase using the Citi card for the specified categories.
My first credit card out of college was the Amex Blue Cash (the old version, it was recently updated). While I love it, it's not the best card for young people, especially those in the city since the main benefits it gives are for grocery stores (I never buy groceries because of work), gas (I never drive since I live in the city) and pharmacies.
After reading the title, I thought the thread would go something like this:
Amex does have amazing customer service. If you like perks, Amex does a very good job of taking care of you. But if you're the kind of person who lives in NJ to avoid taxes, dreams of retiring before 35, and would try to use a coupon on The Price Is Right, you really just want a no-frills cashback card.
Citi Forward is a better card than the three you listed above. I would suggest exploring that a bit more and then deciding. Otherwise, Chase Sapphire would be my choice.
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