If you’ve been involved with credit card points and miles, then you know that most
people gravitate toward Chase and American Express.
It makes sense too, since these programs offer a lot of flexibility and value, especially
for travelers that aren’t locked into a specific travel brand.
That means that the same cards often get featured in a lot of videos, including on our channel.
Though that doesn’t mean that there aren’t other cards that deserve to be in your wallet.
Hey, how’s it going everyone?
I hope you all had a great New Year.
In this video, we’re going to cover my top five underrated cards that you should consider,
whether you’re a beginner or someone who’s been collecting points and miles for a while.
You all know that I love Chase Ultimate Rewards points, so it’s no surprise that a lot of
our content is geared toward Chase credit cards.
For me, Chase’s points have been extremely useful and lucrative, which is why I tend
to collect them, even over other valuable point currencies like American Express.
Everyone’s lifestyle and spending pattern is different, so there’s no one perfect
card set-up.
However, there are cards that sometimes get overlooked that I think are valuable.
These are the cards that often come up during my card consultations too, so I thought I
would share what I consider my top five underrated cards.
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So, let’s jump straight into my list of underrated credit cards.
These aren’t in any particular order either.
1.
American Express Blue Cash Preferred: If you’re into Chase points like me, then you know that
Chase does not have a card with a strong bonus category in groceries.
Yeah, they have the Chase Freedom which usually has one quarter with a grocery bonus.
But otherwise, there isn’t a card in their lineup that offers a consistent grocery spend
bonus.
This is where a card like the American Express Blue Cash Preferred comes in handy.
I’ve had this card in the past, and I’m considering product changing one of my American
Express cards back to it.
I know many in this hobby aren’t interested in cashback, but if you spend a significant
amount on groceries every month, you should look at this card.
The card earns 6% on US supermarkets and streaming services, and 3% on US gas stations and transit
services like taxis, rideshare, parking, tolls, trains, and buses.
You also get a bunch of benefits associated with American Express like their lucrative
offers and Shoprunner membership.
I think American Express has the best offers program when compared to its competitors,
and I love how you can combine them with other shopping portals.
The only catch with this card is that the grocery bonus is capped at $6,000 of spend
per year.
If you’re someone who spends more than $6,000 a year in groceries, then you’re probably
better off going with the American Express Gold card.
Speaking of the Gold card, I know a lot of you might not have kept yours past the first
year.
So, if you’re someone is looking for a replacement grocery card, this might be a great choice.
The Blue Cash Preferred does have an annual fee of $95.
There is a no-annual-fee version as well called the Blue Cash Everyday which earns 3% on US
supermarkets and 2% on US gas stations and department stores.
If you’re wondering what the breakeven point is for these two cards, I did some quick calculations.
If we base it solely on grocery spending, the breakeven point is $264 per month or $3,167
per year.
If you spend more than that in the grocery category, then you’re negating the annual
fee by opting for the Blue Cash Preferred over the Everyday card.
If you spend less than that, then you’re better off going with the no-annual-fee Everyday
card.
And if you’re a little over $6000 a year, you could also supplement your spending with
a rotating bonus cashback card like the Chase Freedom or Discover it.
And if you spend more than $6000 per year, which is $500 per month, then you should consider
the American Express Gold since it has a yearly award cap of $25,000 in spending.
Also, if you’re dead set on earning points over cashback, but don’t feel like the American
Express Gold card is a good fit, then there are two versions of this card that earn points
called the American Express Everyday and Everyday Preferred.
Confusing, right?
I think American Express could have come up with some different names for some of these
cards.
2.
Capital One Venture: I often encounter folks that want to earn rewards toward travel, but
just don’t want to have to deal with the complexity of a flexible points program.
I know, who doesn’t want to spend hours calculating the per point value between transferring
points to a travel partner or completing the booking on a travel portal?
I get it.
While many of us love to geek out on searching for the best rewards, some of us just want
a more simple approach.
This is where a card like the Capital One Venture Rewards comes in handy.
The Capital One Venture is a card that earns a flat-rate of 2% on all purchases.
You can then apply your earned reward toward your travel purchases using their purchase
eraser tool.
They also have travel partners where you can transfer points similar to the flexible points
programs like those from Chase, American Express, and Citi.
The card has no foreign transaction fees so you can use it abroad without paying extra
fees, and it even includes a $100 credit for Global Entry or TSA PreCheck.
This is honestly a great card for those looking for a more simple set-up.
It can also be a great card to complement a flexible points program, especially when
it comes to offsetting the cost of other travel expenses like Airbnbs, independent hotels,
and tours.
The card has a $95 annual fee which is waived the first year.
As of this video, it also has a 50,000 points welcome offer, which is worth $500.
Some of you might be asking, why not just get a Citi Double Cash card instead since
it doesn’t have an annual fee?
It’s a valid question, and the Citi Double Cash or other 2% cashback card might be a
better fit for some people.
However, keep in mind that you’re getting a better welcome offer with the Venture card,
as well as some of the travel perks like the Global Entry credit and no foreign transaction
fees.
And in case you’re wondering, you can product change the card after the first year to their
no-annual-fee VentureOne card if you want to retain your points without paying the annual
fee.
It makes it a very compelling card to consider since you’re getting so much value in the
first year of card membership, especially when you consider that you don’t pay an
annual fee the first year.
3.
US Bank Cash+: I cover this card every quarter during our rotating bonus category video.
It’s similar to the Chase Freedom or Discover It with it’s rotating categories.
The big difference is that you get to pick your 5% and 2% categories every quarter, and
you’ll earn the 5% bonus on up to $2000 of your spending per quarter on the combined
selected bonus categories.
The Chase Freedom and Discover It, for example, only earn 5% on up to $1500 of spending per
quarter.
And the US Bank Cash+ has some more unique bonus categories like fitness centers and
home utilities.
The card has no annual fee, and as of this video, it comes with a $150 welcome offer.
I think this card appeals to a lot of folks.
I like that I can use the card to earn a bonus on my gym membership and utility bills.
Those are reoccurring expenses, so it’s easy for me to earn over $100 every year by
using this card without even thinking about it.
The only catch with this card is that US Bank is a bit picky when it comes to getting an
approval.
A lot of folks online have reported that US Bank is a relationship bank, so they prefer
to give approvals to those have done business with them in the past.
This includes those that have a banking relationship with them.
I personally don’t have a checking or savings account with them, but I did have a previous
card with them, so that must have helped me when I got this card.
It’s just something to keep in mind if you are looking to get this card and perhaps have
a short credit history.
4.
Citi Costco Anywhere: This is a card that I’ve considered getting, and may still get
since we are spending more at Costco.
The Costco Anywhere card does require a Costco membership but doesn’t have an annual fee.
The card earns 4% cashback on gas purchases, including at Costco Gas, for the first $7000
per year.
It also earns 3% on restaurant and travel purchases and 2% on in-store and online purchases
at Costco.
Everything else earns 1%.
Travel purchases on this card include airfare, hotels, car rentals, travel agencies, cruise
lines, and Costco Travel.
Citi also says that timeshares, campgrounds, bed and breakfasts, and train and commuter
travel do not earn the 3% either.
However, the card does not have any foreign transaction fees, so you can use it overseas
without paying extra.
I think this is a great card to have, especially if you spend a lot on Costco purchases and
gas.
My only gripe with this card is that the cashback bonus is awarded once per year on your February
billing statement, and you need to redeem it at Costco.
You can also get it in cash, but it still requires you to go to Costco in order to redeem
it.
Most cashback cards allow you to redeem throughout the year, so it’s something to keep in mind
if you’re considering this card.
5.
Chase Ink Business Cash: This is a business card, so not everyone will be able to get
it.
However, whether you are someone who collects Chase Ultimate Rewards points or not, this
card is a powerhouse.
I know I’ve mentioned it in several other videos, but this card easily earns me 1,000
points every month with just my normal spending.
That’s because it earns 5% or 5X points on office supplies, internet, cable, and phone
services.
It also earns 2% or 2X points per dollar for fuel and dining out charges.
The 5% or 5X on office supplies is more useful that it might seem.
That’s because office supply stores have a lot of useful items and valuable services.
For example, you can buy stamps and gift cards, or even ship packages there, which all qualify
for the 5% bonus.
Also, you could combine the card with a shopping portal to earn additional cashback and points
on top of the bonus category.
The card has no annual fee, and is marketed as a business cashback card.
However, like the Chase Freedom card, you’ll earn points which can be redeemed for cashback
at one cent per point, but is even more valuable if you combine with a premium Chase card since
you’ll get a higher redemption rate on the Chase Ultimate Rewards portal.
Premium cards like the Chase Sapphire Preferred, Sapphire Reserve, or Ink Business Preferred
allow you to also transfer your points to travel partners, which is often more valuable.
I feel like this card often gets overlooked since most people are drawn to the Chase Ink
Business Preferred since it has a higher welcome offer.
However, for long-term use, I think the Ink Business Cash is a more valuable card.
And as of this video, the welcome offer included with the card is still very competitive.
What do you think of these cards?
Are there other underrated cards that you would add to the list?
Let me know in the comment section below.
If you’re interested in applying for any of the cards mentioned in this video, we would
love it if you used our link in the video description or on our website.
It’s an easy way to support our channel, especially if you’ve found our content to
be valuable and helpful.
Also, if you need any help with picking the right credit card or developing a card strategy,
sign-up for our free card consultation service.
You basically fill out a questionnaire and schedule a 15-minute video or audio call with
me to review your recommendation.
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