Which creditcard would you recommend to have?

[Ethan S.]

I am looking for a new credit card. I have a nearly perfect credit score. I'm just wondering which card to get. I've been told to avoid cards that have annual fees and look for a card with high cash back rewards. I noticed amazon just released a credit card for 5% cash back for online purchases. What advice would you recommend for finding a credit card?

[Bill R.]

Originally posted by @Michael Braatz:

Right now, one of the best, if not the best card to get would be the Chase Sapphire Reserve. If you apply for it in branch you get 100,000 bonus points after spending 4k in 3 months.  It has a $450 annual fee(cancel after 9 months).  100,000 points are worth $1,500 in travel, it also comes with $300 airline credit yearly(calendar year, so you can use it twice while only paying 1 annual fee).  

1500+600=2100-450(annual fee) = $1650 value.

Second that recommendation.  I know a lot of people prefer not to pay credit card fees but as was mentioned, you get an annual $300 travel credit (not just limited to airlines but good at hotels, etc) which almost pays for the annual fee itself.  

And as someone who logs a lot of miles every year, the lounge access is certainly worth the additional $150 difference.  Just used it in December on a 5 hour layover in Los Angeles.  Five hours in comfy chairs, watching tv, reading the free newspaper, eating free food, and drinking free beers vs . . . sitting in an airport bar?  Easy choice.  

And on the really long haul flights, you really don't know heaven until you're able to take a quick shower in one of these lounges after a 10 hour flight and you still have another 8 hour leg ahead of you.  

I also have the United and American linked credit cards with fees.  Again, at $95 a pop for each, you could easily make that back on checked bag fees even if you only travel a few times a year.  I saved $100 on checked bag fees on my last trip.  That alone made up for the fee.    

In addition to the above benefits, I've also found that you can really maximize if you plan correctly.  The cost of business class, especially international, is so absurd at times but you can buy a economy ticket and then request an upgrade using miles.  In other words, rather than buying a $800 round trip economy seat on miles.  Pay the $800 and upgrade to a $4,000 seat in business/first on the miles.   

Of course, if you don't travel much, I would go with the card with the best cash back offer.  

Another tip, whether you go miles or cash back, assuming you think you can responsibly pay off your balance at the end of every month, put all of your bills on your credit card.  I pay my electric, water, gas, etc, via my credit cards so I get miles.  I even bought a car once on my credit card for the miles.  I was going to buy it cash anyway so why not?