Dear Clever Credit,
Hi there! I’m looking for recommendations for my next card after having the Chase Freedom Unlimited® for three years. This was my first credit card, and I’m looking to expand. I’m moving soon and would like to take advantage of a sign-up bonus as I buy furniture and other essentials. After the sign-up bonus, I’d like to start earning travel rewards from dining and entertainment to make the most of my spending (usually my largest spend categories after groceries and rent). Any miscellaneous spend with no applicable point categories would continue to go on my Chase Freedom Unlimited for cash back. Thanks!
Signed,
A Little Bit of Everything
Dear Everything,
I think I have just the card for you. If you’re OK with an annual fee, I think the American Express® Gold Card could work out best for you. It earns:
— Four points per dollar spent on restaurant purchases worldwide, on up to $50,000 per calendar year, then one point per dollar for the rest of the year
— Four points per dollar spent on grocery purchases at U.S. supermarkets, on up to $25,000 per calendar year, then one point per dollar for the rest of the year
— Three points per dollar spent on flights booked directly with airlines or on AmexTravel.com
— Two points per dollar spent on prepaid hotels and other eligible travel purchases booked through AmexTravel.com
— One point per dollar spent on everything else
There are a few caveats to keep in mind with this card, though. For one, it has an annual fee of $325. See Rates & Fees And, like with many credit cards, superstores and wholesale clubs don’t count as supermarkets. So if you do most of your shopping at, say, Walmart or Target, you may either need to change stores or consider another card.
But other than that, the card hits all of your marks! It comes with a hefty welcome offer of up to 100,000 points after you spend $6,000 in eligible purchases in your first six months from opening your account. So you might even be able to spring for the more expensive couch.
As far as entertainment is concerned, American Express offers exclusive perks for its cardholders. AmEx hosts something called American Express Fan Experiences at select music festivals and sporting events. Last year, Fan Experiences were available at events like Coachella, Wimbledon and ACL. Perks will depend on the event, but range from presale tickets to exclusive lounges and preferred seating.
[Read: Best Rewards Credit Cards.]
Another alternative could be the Bilt Mastercard from Wells Fargo since rent is one of your largest spend categories. If you want to put your rent on a credit card to earn rewards, then the Bilt Mastercard is going to be one of your best options. It earns:
— Five points per dollar spent at Bilt Neighborhood Dining Partners
— Five points per dollar spent on Lyft (after you’ve linked your Bilt and Lyft accounts)
— Three points per dollar spent on other dining purchases
— Two points per dollar spent on travel (when booked directly with airlines, hotels, car rental agencies, cruise lines or through the Bilt Travel Portal)
— One point per dollar spent on rent (up to 100,000 points each calendar year)
It has no annual fee, and the transaction fee on rent payments is waived when you use your Bilt card. And you can use the points you accumulate to reduce your next month’s rent payment. The only drawback is that it doesn’t have a sign-up bonus.
Just figure out what purchases you want to put on what card and where you think you’ll earn the most rewards — rent versus groceries or dining versus entertainment. And if you get one credit card now that fits most of your needs, you can always look at other credit cards a few months from now to fill in any gaps. It’s how you play the rewards game!
More from U.S. News
With Its Higher Annual Fee, Is the American Express Gold Card Still Worth It?
Can You Pay Your Rent With a Credit Card?
Is the Bilt Mastercard Worth It?
Clever Credit: I’m Ready to Upgrade from Cash Back. What Should Be My Next Rewards Card? originally appeared on usnews.com
