Credit Card Advice

[MrKK18]

Hello everyone,

I was looking for advice on opening a new credit card. I start school in July. I currently have an United mileage card that my parents encouraged me to get/use during undergrad. However, I don't think the benefits were really ever there for me on a daily basis. It was nice to never pay for a checked bag and always have my flights protected, but I don't think I was getting the most out of it. The only other card I use is the Costco CITI card, which is great for gas and costco purchases.

I saw across the internet that a lot of medical students love the Chase Sapphire Reserve card for its many benefits despite the large annual fee since the benefits off set most of it. However, I was hoping to hear some input if this would be a good decision. I don't think I'd have trouble opening a card because I have a 787 credit score and a pretty large credit limit.

Thanks

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[Deltasidearm]

Personally, I find it hard to justify a travel card with the limited amount of traveling I can afford to do in terms of both cost and time during medical training. For my expenses, cash back cards seem to provide a greater return than points-based cards, and they avoid the hassle of playing a game finding the best deals to redeem your points to maximize $/point. With my student lifestyle, I simply don't purchase enough in the 3 - 10x point categories to beat 2 - 5 % cash back. Ultimately, whether a card is worth it for you is a math problem (I mean this literally--there is an objectively correct answer in strict financial terms) that only you can do for yourself with how much you spend, what you spend your money on, at what point do benefits from the premium credit card match the free card, and how many cards you want to juggle to maximize returns.

Obligatory for anyone reading: Obviously, all credit cards should be treated solely as debit cards and paid off entirely every month to avoid any interest accrual.

 

[Dral]

I think it's great to get suggestions, but you'll ultimately have to decide what you get the most out of. If you travel to see family via flying, then that type of card is good. If you do not have allegiance to a particular airline, both the CHASE card or an AMEX card are great. AMEX isn't accepted everywhere though.

There are a lot of cards that have rotating benefits. For example, a card might give a discount on groceries a quarter of the year with other times of the year having utility discounts, big box store discounts, etc. If you don't do a lot of travel, looking into those might be a good idea.

Check out nerdwallet. You will likely go down a few rabbit holes before you decide which one is best for you.

 

[mistafab]

I prefer a no-gimmick, cash back card.

It doesn't incentivize you to do dumb trips or to spend more to earn more. It simply gives you money back on purchases.

Go with whatever works for you best.

 

[operaman]

I just had a simple no fee cash back card as a student. Now I still have that card plus chase sapphire preferred and Amex gold. The annual fees are canceled out by the benefits for me and the points accrue fast because they line up with my biggest spends. I don’t travel enough to use all the additional perks of a high end travel card like Amex platinum or chase reserve, and I typically splurge on nice seats that come with lounge access and luggage and all the perks anyhow. If I traveled a lot more though I would definitely get one.

I did have friends who played the credit card game as a student though. They played it more on the bonuses for opening new cards rather than daily spend. Usually these are anywhere from 50-100k points for opening a new card and spending x amount on it in a given time period. They would get the bonuses and cancel the cards before getting another annual fee. Lots of websites go into the details on this and the things to watch out for, but you can score a lot of free travel if you play the game well and are flexible in your travel plans.

Obviously the secret is paying things off immediately and not altering your true spending just to get bonuses. Also beware fees that can come with using credit cards for larger recurring purchases like rent as that cuts into your net profit. Personally I didn’t have the bandwidth or budget to play the game as a student, and it does require some time and effort to learn the game and keep up with the churn.

 

[throwaway7856]

If opening a new card, consider timing it so that you know you can meet the intro bonus. If the card requires you to spend $4,000 in the first 3 months to score 50,000 points, make sure that you can spend $4,000 in the first 3 months. Depending on your budget/spending habits, get the card before a large purchase so that you meet the threshold.

Unless you know that you are flying a lot with a certain airline, a more generic card (Chase, Capital One, Amex) will be more flexible.

 

[amoxicillin_resistant]

anybody here use BILT?