Advantages To Having Multiple Credit Cards
Having more than one or two credit cards can be a good fit for most people as a credit card allows you to establish credit history. A good credit history over time will save you money as it can help you qualify for lower rates on other types of loans, like mortgages, auto loans or student loans. Since many rewards cards offer tiered rewards in different areas of spending, for someone with a careful strategy of pairing rewards cards, it can be more beneficial than just one card.
How To Pay Off Credit Card Debt
There are multiple ways to get a handle on your credit card debt. The right one for you will depend on your budget and goals. The debt snowball and debt avalanche methods are two commonly used ways to pay down debt. With the debt snowball method you make the minimum payment on each card. Then you put any additional money you have toward the card with the smallest balance. Instead of looking at each cards interest rate, you focus just on the outstanding balance. The theory is that by focusing on the smallest balance first, youll pay it off quickly.
The debt avalanche method the focus shifts from the smallest balance to the highest interest rate. All extra funds above the minimum payment go to the card with the highest interest rate. Once paid in full, money is then directed to the card with the next highest interest rate.
Other options to help pay down credit card debt include shifting the balance to a card with an introductory 0% APR balance transfer offer, taking out a personal loan or in more challenging circumstances, asking your issuer for help with a debt repayment plan.
Disadvantages To Having Multiple Credit Cards
Too many credit cards can entice you to overspend and take on more debt than you can handle. And if youre considering adding more credit cards to your portfolio, keep in mind that every time you apply for a credit card, the issuer will run a credit check to determine whether or not to approve you. This can ding your score. And, some issuers will turn you down if you apply for too many cards in too short a period of time.
But for someone who can pay their bills in full and on time, and doesnt mind the effort of juggling multiple cards, owning several cards can be part of a plan that works for them.
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If My Application Is Denied Is There Anything I Can Do To Get Approved
For example, Chase will extend you a certain amount of credit based on your income and if youve already reached that limit, your application can be denied. However, its possible to move credit from existing accounts to the new account. So, as an example, instead of having all of your $20,000 in credit attached to a single card, you could move half of that to a new account to facilitate an approval.
The Chase reconsideration line for personal cards is 888-270-2127 for business cards, its 800-453-9719.
Best Chase Credit Card For Luxury
The Chase Sapphire Reserve® luxury travel card includes an abundance of perks for the frequent traveler:
- $300 annual travel credit that is automatically applied to eligible travel purchases.
- Up to $100 Global Entry or TSA Precheck credit every four years.
- Complimentary access to over 1,300 airport lounges with Priority Pass Select.
- $0 foreign transaction fees
- Complimentary Lyft Pink membership for one year, entitling you to savings and special offers on Lyft.
- Excellent travel protections, including trip cancellation and interruption insurance up to $10,000 per person, primary rental car insurance, lost luggage reimbursement up to $3,000 per passenger, trip delay reimbursement up to $500 per ticket and emergency evacuation and transportation up to $100,000.
- Purchase protection for 120 days against damage or theft up to $10,000 per claim.
- Return protection for 90 days up to $500 per item.
- Extended warranty adds one year to eligible manufacturer warranties.
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Ultimate Reward Transfer Partners
Chase partners with 10 airlines and three hotels for eligible cardholders to transfer points on a 1:1 basis. There are no fees or limits when transferring points. However, once you transfer points from Chase to a partner, you cannot transfer them back.
Although several credit cards earn Ultimate Rewards points, only three are eligible to transfer points to these partners. These cards are:
- World of Hyatt
Best Business: Ink Business Unlimited
$750 bonus cash back after you spend $7,500 on purchases in the first 3 months from account opening.
|Earn unlimited 1.5% cash back on every purchase.|
|INTRO PURCHASE APR|
|Either $5 or 5% of the amount of each transfer, whichever is greater.|
|Cash Advance APR|
|Either $15 or 5% of the amount of each transaction, whichever is greater.|
- Why We Chose This Card:
- Pros & Cons
The Ink Business Unlimited card was selected as our best Chase business card because of its flat cash back earnings rate of 1.5% on all business purchases and no annual fee. Business owners can also add employees to the account for free to earn even more rewards on their spending and meet the minimum spending requirement to receive the one-time bonus. Rewards can be taken as cash back or transferred to another business or consumer Chase card that earns Chase Ultimate Rewards.
Employee cards can be added at no cost
Larger minimum spend requirement to earn bonus
No bonus rewards categories
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Other Chase Sapphire Card Details
One tradeoff for the Chase Sapphire Preferred bonus is the $95 annual fee. However, the bonus can help offset the annual fee if you use it to pay for travel with one of the Chase travel partners. The Preferred is comparable to another popular travel credit card, the Capital One Venture Rewards Credit Card, and other cards with similar benefits. See how the Capital One Venture and Chase Sapphire Preferred to compare for more information.
Because the Sapphire Preferred is the best Chase credit card overall, this signup bonus is somewhat exclusive. You only qualify if you do not own another Sapphire product and havent received a new Sapphire cardmember bonus in the past 48 months. Knowing the Sapphire application rules can help you have the best chance for approval.
You will also need to keep an eye on the number of new credit card accounts you open. The Chase 5/24 rule will most likely decline your application if you have opened or been listed as an authorized user on 5 or more new credit cards in the most recent 24 months.
The Chase Sapphire Preferred® Card is a rewards Chase credit card. Redeeming your points for award travel helps make each point worth at least one cent each.
Which Chase Credit Card Is Best
With so many highly-rated Chase credit cards, its tough to choose a truly best card. Theyre all strong in their own way, offering unique benefits that cater to different people.
If youre looking for a card thats simple and offers cash back, then the Chase Freedom Unlimited is the way to go. If you dont mind paying slightly more attention to your purchases, then the Chase Freedom Flex will allow you to maximize the rewards you earn every quarter.
But if travel rewards are more to your liking, then you cant go wrong with either the Chase Sapphire Preferred or the Chase Sapphire Reserve. The leisure traveler will probably find the Sapphire Preferred suits them better, while those who spend a significant amount of money on travel and classify themselves as a road warrior will find value in the more expensive Sapphire Reserve.
If hotel benefits are a priority, the World of Hyatt Credit Card could potentially help you get treated like a VIP during your next hotel stay. And its tough to beat the annual night certificates that come each year with the IHG Premier card.
Finally, if youd prefer to focus on flying, look no further than the Southwest Premier card to secure the Southwest Companion Pass, or the United Explorer Card to provide you with some better award flight options. And of course if youre a business, the Ink Business Preferred is an ideal choice.
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How Chases Ultimate Rewards Program Works
Chase issues numerous cards that earn Ultimate Rewards, which can be redeemed for travel, gift cards, Amazon.com gift certificates, and Apple merchandise or transferred to Chase travel partner loyalty programs , usually on a 1:1 basis. Chases premium travel card, Sapphire Reserve, offers a 50% premium on Ultimate Rewards points when they’re redeemed for travel through the UR travel portal, while the Sapphire Preferred and Ink Preferred provide a 25% premium.
The following Chase cards offer Ultimate Rewards:
- Chase Sapphire Reserve
For more details on Ultimate Rewards, please see our Ultimate Guide to Chase Ultimate Rewards.
Aside from Chases Ultimate Rewards program, the bank offers other rewards cards that include cash back and partner-based programs like airline, hotel, and retailer loyalty points.
Best For Exclusivity: Chase Sapphire Reserve
Rewards rate: 1x 10x
Annual fee: $550
Editors thoughts: This card is not one youll find in many peoples wallets. If you can manage the high annual fee, the rewards and benefits are immense
The Chase Sapphire Reserve is exclusive in the sense that not many individuals would be willing to pay the $550 annual fee to add this card to their wallets. That being said, for those that do, the rewards and perks can certainly outweigh the annual cost.
New cardholders can earn 50,000 bonus points after spending $4,000 on purchases in the first three months from account opening.
Heres a breakdown of the points you can earn:
- 10x total points on hotels and car rentals when travel purchased through Chase Ultimare Rewards®
- 10x total points on Chase Dining purchases with Ultimate Rewards®
- 5x total points on flights when purchased through Chase Ultimate Rewards®
- 3x points on all other travel
- 3x points on other dining
- 1x points on all other purchases
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Chase Freedom Unlimited: Best For Cash Back
The Chase Freedom Unlimited is by far the best Chase credit card for earning cash back. With 1.5% in cash back on every purchase, you can use the Freedom Unlimited anywhere and know youll earn at least 1.5% cash back on everything you buy.
But theres also a trio of bonus categories on this card, making it even more valuable. Chase Freedom Unlimited card holders also earn 5% on travel purchases made through Ultimate Rewards, 3% on dining and 3% at drugstores.
To top it all off, new Chase Freedom Unlimited card applicants can currently earn an additional 1.5% cash back on everything you buy in the first year after opening the account, up to $20,000 in purchases. That means if youre able to spend that much, youd be earning an extra $300 in bonus cash back.
And this no-annual-fee card provides an opportunity to earn an even higher return if you prefer to trade in your cash back for travel rewards. Thats because if you pair the card with a more premium Chase Ultimate Rewards card such as the Chase Sapphire Preferred or Chase Sapphire Reserve you can convert the cash back to flexible travel points at a 1-to-1 ratio.
Other benefits of the Chase Freedom Unlimited include purchase protection and extended warranty protection, a complimentary three-month subscription to DashPass and 5% cash back on Lyft rides through March 2022.
What Credit Score Do You Need For A Chase Credit Card
The recommended is a FICO® Score of 670 or higher, which is considered good credit. But your credit score isn’t the only thing that determines whether you’re approved when applying for a Chase credit card. Chase also looks at other factors, including your income. Good credit simply improves your chances of success. Another way to do that is to prequalify for Chase credit cards first, as that helps you find the cards where you have the best approval odds.
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Best For Flexible Travel Rewards
Card Overview: The Chase Sapphire Preferred is the best credit card for anyone that is just starting out on understanding rewards points as well as one of the best credit cards for those who know how to navigate their way around the points game.
It earns 5X points on travel purchases through Chase Ultimate Rewards, 3X on online grocery purchases, select streaming services, and dining purchases, 2X on other travel purchases, and 1X on everything else.
The card offers a 25% boost to the value of Ultimate Rewards Points when redeemed for travel through Chase Ultimate Rewards which gives your points an easy value of 1.25 cents each. It also features an annual $50 hotel credit redeemable towards booking made through Chase Ultimate Rewards.
Ultimate Rewards Points can also be transferred to Chase’s airline and hotel partners for a chance at even more value.
Like most Chase credit cards, it offers top-notch travel insurance which can save you money in the case things do not go as planned.
Worth The Fee? The Chase Sapphire Preferred is a great option if you’re looking to build rewards towards travel. It’s also considered one of the best cards if you’re new to earn rewards points.
With only a $95 fee and the ability to earn a solid amount of points across several categories, the Chase Sapphire Preferred can easily be worth the annual fee.
More Info About What You Get With Chase Sapphire Reserve:
Fortunately, Chase Sapphire Reserves sign-up bonus isnt the only benefit youll enjoy. Youll also receive a $300 travel credit each year. Plus, youll earn a total of 10 points per $1 spent on hotels and car rentals booked through Chase, a total of 10 points per $1 spent on prepaid restaurant reservations or takeout orders made through Chase, a total of 5 points per $1 spent on flights purchased through Chase, 3 points per $1 spent on all other travel and dining purchases, and 1 point per $1 on all other purchases. Those points are normally worth 1 cent each, but when redeemed for travel, theyre worth 1.5 cents apiece.
The best Chase travel credit card is the Chase Sapphire Preferred® Card because it offers 5 points per $1 spent on travel through Chase, and 1 point / $1 to 3 points / $1 spent on all other purchases. The Chase Sapphire Preferred card also has an initial bonus of 60,000 points for spending $4,000 in the first 3 months.read full answer
In addition, the Chase Sapphire Preferred card offers key travel-related benefits such as trip delay reimbursement, trip cancellation / interruption insurance, and baggage delay insurance. And with a $0 foreign transaction fee, you wont be charged extra on purchases made abroad. The annual fee is $95.
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Best Chase Credit Card For Travel
- Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That’s $750 when you redeem through Chase Ultimate Rewards®.
- Enjoy benefits such as a $50 annual Ultimate Rewards Hotel Credit, 5x on travel purchased through Chase Ultimate Rewards®, 3x on dining and 2x on all other travel purchases, plus more.
- Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards®. For example, 60,000 points are worth $750 toward travel.
- With Pay Yourself BackSM, your points are worth 25% more during the current offer when you redeem them for statement credits against existing purchases in select, rotating categories.
- Get unlimited deliveries with a $0 delivery fee and reduced service fees on eligible orders over $12 for a minimum of one year with DashPass, DoorDash’s subscription service. Activate by 03/31/22.
- Count on Trip Cancellation/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more.
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