Ever wonder what credit cards the experts themselves are reaching for? I stumbled across an interesting article from The Points Guy (TPG) about which cards their team members are currently applying for, and it got me thinking – maybe we can all glean some valuable insights from their strategies. After all, these are the people who live and breathe credit card rewards!
Instead of keeping this insider knowledge to myself, I thought I’d share some of the key takeaways. It’s not about blindly following what others do, but about understanding why they’re doing it, so you can make smarter choices for your own wallet.
So, what are the TPG staffers picking up? Let’s dive in:
1. Maximizing Travel Perks (Especially Now!)
A recurring theme in the TPG article was maximizing travel benefits. With travel picking up again, it makes sense! Think about it: if you’re planning a trip, a card that offers bonus points on flights and hotels can seriously cut down your costs. Plus, perks like free checked bags and airport lounge access can make the journey much smoother.
A recent study by ValuePenguin found that travelers are increasingly prioritizing rewards and perks when choosing credit cards, with over 60% saying rewards are a significant factor in their decision-making. ValuePenguin Credit Card Survey
2. Focusing on Specific Loyalty Programs
Some TPG staffers were targeting specific hotel or airline loyalty programs. This is a smart move if you already have a preferred brand. By focusing your spending on a co-branded card, you can quickly rack up points or miles in that program and unlock elite status, which comes with even more perks.
For example, if you frequently stay at Marriott hotels, the Marriott Bonvoy Boundless card (example) can provide significant value.
3. Earning Big Welcome Bonuses
The quickest way to boost your rewards balance? Welcome bonuses! Many credit cards offer generous sign-up bonuses after you meet a certain spending requirement. The TPG team definitely understands this. They’re strategic about applying for cards with high bonus offers, especially when those offers are time-sensitive.
CreditCards.com reports that welcome bonuses can be worth hundreds, even thousands, of dollars in travel or cash back. CreditCards.com Welcome Bonus Analysis
4. Utilizing Business Credit Cards (Even for Small Businesses!)
Don’t underestimate the power of a business credit card, even if you’re just a freelancer or side hustler. Business cards often offer higher rewards rates and unique perks tailored to business owners, such as software credits or discounts on shipping. The TPG article highlighted this point, and it’s definitely worth considering.
The Small Business Administration (SBA) offers resources to help small business owners understand the benefits of business credit. SBA Small Business Credit Guide
5. Considering Cash-Back Options
While travel rewards are often glamorous, cash-back cards shouldn’t be overlooked. Sometimes, simplicity and flexibility are key. A cash-back card provides a straightforward way to earn rewards that can be used for anything, without having to worry about blackout dates or award availability.
A 2023 survey by J.D. Power found that customer satisfaction is higher with cash-back cards compared to travel cards, primarily due to their ease of use. J.D. Power Credit Card Satisfaction Study
Key Takeaways for You:
- Assess your spending habits: Where do you spend the most money? Choose cards that reward those categories.
- Have a travel strategy: If you travel often, focus on travel rewards cards and loyalty programs that align with your travel preferences.
- Don’t ignore welcome bonuses: They’re a great way to quickly earn a lot of rewards.
- Explore business credit cards: Even a small side hustle can qualify you for a business card with valuable perks.
- Consider cash back: It’s a simple and flexible way to earn rewards that you can use for anything.
Ultimately, the best credit card strategy is the one that works for you. What works for a team of points and miles gurus might not be the best fit for your situation. Use these insights as a starting point to research and find cards that align with your goals and spending habits. Happy rewarding!
FAQ: Your Burning Credit Card Questions Answered
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How many credit cards should I have? There’s no magic number, but having 2-3 cards that cater to different spending categories is a good starting point.
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Will applying for multiple credit cards hurt my credit score? Applying for too many cards in a short period can temporarily lower your score. Space out your applications.
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What’s a good credit score to get approved for a rewards card? Aim for a score of 670 or higher.
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Are annual fees worth it? It depends. If the value of the rewards and perks outweighs the annual fee, then yes.
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How do I avoid credit card debt? Pay your balance in full each month and don’t spend more than you can afford.
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What’s the difference between APR and interest rate? They’re essentially the same thing – the annual cost of borrowing money on your credit card.
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How do I redeem my credit card rewards? Redemption options vary by card, but common options include statement credits, gift cards, and travel.
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What happens if I miss a credit card payment? You’ll likely incur a late fee and your credit score may be negatively impacted.
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Can I negotiate a lower interest rate on my credit card? It’s worth a try! Call your credit card issuer and ask.
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Are prepaid credit cards the same as regular credit cards? No, prepaid cards are loaded with your own money and don’t build credit.
