Start with Chase
Other issuers might look attractive but…
By: Randy Clinton
Last updated April 25th, 2021
Why?
Chase is the most well rounded issuer, especially for people early in the game.
FAQ at bottom, good chance the answer you’re looking for is there.
Card Multipliers
This three card setup is insanely efficient. The lowest amount of money you will get back for each purchase is 2.25% and it could go as high as 7.5% (if you get the Sapphire Preferred the range is 1.87% to 6.25%)! For the time being, please look at these percentages as Chase Ultimate Reward Points (UR). 1 point = 1 cent in terms of cashback (more on this later, I promise).
I have a more in depth guide on each card, but please continue reading here. If you click on the in depth card review it will open in a new tab for you to read later.
5/24
By now you should remember 5/24. If you have had more 5 of more credit accounts opened in the past 24 months you will be denied a new Chase card.
For beginners, I believe that the Chase ecosystem is the easiest one to derive clear value from. This is why without a good reason, you should not sign up for any card from other issuers until you are absolutely sure that you have all of the Chase cards that you want. If I could go back in time, I would have told myself to sign up for the Chase Hyatt Credit card because at the time of writing this I was 6/24 for another year or so.
If you are new to credit cards and not interested in getting more than a few I can understand how this might not seem like a big deal, but after you finish this guide you’ll understand why.
Easy SUB
Two of the cards in the “Trifecta” do not have annual fees and also have relatively low minimum spend of only $500 in 3 months for their SUB. At the absolute lowest value of points that’s $400 for $1000 in spend, a 40% return on spend!
I recommend getting one or both of these cards first to have a base amount of points, then when you are 3-5 months away from travel get the huge 60k or 80k points offers on the higher minimum SUB (4k in 3 months) Sapphire Reserve or Preferred.
Sapphire Superpower!
At first glance it might have been hard to notice a difference between the two middle cards at the top. One of the Sapphire cards completes the “Trifecta” setup (remember you can only hold one Sapphire card at a time).
What sets the Sapphire cards apart from the Freedom cards is it’s “Superpower” for Travel redemption.
Both the Sapphire Preferred and Sapphire Reserve have the ability to ability to redeem UR points for travel at an elevated rate of 1 point = 1.25 cents on the Preferred and 1 point = 1.5 cents on the Reserve! For those who are willing to put in more work, these cards also allow transfers to any of Chase’s transfer partners as well! Remember from above 1 point is = 1 cent in terms of cashback.
Typical Cash Back Cards
There are so many cards out there offering cash back on purchases, some in the form of points and others in the form of cashback. If you were to get the SavorOne card from Capital One you get 3% on dining. The Chase Freedom Unlimited also gets 3% back on dining, but here’s where it gets interesting.
If you spend $100 on dining on the SavorOne card you would get a static $3 back. If you were to spend the same $100 on the Chase Freedom Unlimited, you would get 300 UR points (worth $3 in cash back).
Now let’s combine knowledge from the “Sapphire Superpower” post. If you were to move those 300 points from your Freedom Unlimited to your Sapphire Reserve, you no longer have just $3 in value, you now have $4.5 in value when redeemed for travel ($3.75 with the Preferred)!
FAQs
Can I move points earned on different UR cards to the Sapphire Reserve or Preferred?
Yes, I recommend moving points over from other UR cards to the Reserve or Preferred before redeeming.
Is there a downgrade path?
Yes all Sapphire and Freedom cards cards can be product changed between each other. Keep in mind you can only hold one Freedom Flex card and one Sapphire card at a time. With product changes you can pay $0 in annual fee’s for this setup if you are in a tough situation or ran out of points and choose to pursue other cards.
Chase Ink Business Cards are UR cards too?
Yes, you could also add the Ink Business cards into the mix and have a setup that is 2 cards larger. Some people are not willing or able to get business cards so I did not include them here. Check out this page for more info on Chase Business cards here.
How do I even redeem these points? What can they be used on?
Currently, the Chase travel portal is powered by Expedia, anything you can book on Expedia can be booked using Chase points.
Why would I not get the Sapphire card first?
I recommend getting at least one of the Freedom cards first because this will give you an additional 20k - 40k UR points for free in addition to your Sapphire SUB. If you get the Reserve and the SUB is 60k that’s enough for $900 in travel, with an additional free 20-40k UR points that could be as high as $1500 in value via the travel portal with no additional cost in annual fee.
Which Sapphire card should I get?
That will be a personal choice; check the reviews on both the Preferred the Reserve to find out which better suits you.