I feel sort of crazy right now guys. I just opened up a Chase Sapphire Preferred card like, a month ago. Before that, I only had one credit card (store credit cards don't count) and it was my Citibank Driver's Edge card which turned into the Thank You card (which I abhor, the only good thing about it is the protection and other fun stuff they cover). So now I'm up to 2 credit cards, but I only use my Sapphire Preferred and Citibank has a zero balance.
After reading a ton of blogs about maximizing credit card use and rewards, I think I'm going to try and open up a Chase Freedom card after the holidays. Basically, I got the Sapphire Preferred because I loved the 2x points on dining and travel, no foreign transaction fees, and the amazing points conversion. Basically each point could be worth more than a dollar if you redeem points through their Ultimate Rewards portal and transfer the points to a travel partner. You can basically transfer points to travel partners like Continental, British Airways, Marriott's, Hyatt, etc so you could get a round trip flight to a foreign country or free nights at Marriott's, just by using your card wisely (for dining and travel mostly). There is an annual fee of $95 but it is waived during your first year.
I'll show you how this annual fee could be more than compensated for by opening up the Chase Freedom card.
Enter the Chase Freedom card!
No annual fee
1 point per dollar spent
5 points on rotating categories each quarter (up to $1,500/quarter)
If you're a Chase checking customer (which I am) you get 10% bonus on all points earned each month, plus 10 points per purchase.
Example for Chase Freedom (thanks to Fat Wallet):
Make 16 purchases spending $400 in a month
$400 = 400 points because of the $1/1 point Freedom reward
+40 points: 10% bonus being a Chase checking customer
+160 points: 10 points per transaction (16 transactions)
400+40+160 = 600 points for $400 worth of spending
Instead of just using this for cash back, you can transfer these into the Ultimate Rewards partners at 1:1 ratio. HOLLER! Once I open up my Freedom card I'm not going to use my Sapphire card unless it is for anything outside the 5 point quarterly categories or for dining/travel if they are not on the quarterly categories as those are 2x the points on Sapphire, or for foreign transactions or items that need more protection.
And seriously this sounded like it was sponsored by Chase. It's not, unfortunately. But I'm just really loving all of their cards, my checking account, and their customer service lately. For savings, I prefer my ING Direct account though.
Anyone else maximize more than 1 credit card? Interested to hear other cards and strategies!