Which credit cards you must have in your wallet

So what all cards you must have in your pocket. Well, there are so many but we are not here to talk about all of them but the ones absolutely must. 

But before we get to the details, you need to think about what you really like to get out of your credit cards. Cash back or points that you could use.

I always liked cash back until, I started seeing the benefits of the points on some of the cards. In this case, I am talking about Chase Sapphire reserve card. Remember that offering from Chase when they launched the card. Well, I opted in and was handsomely rewarded with points and was able to book my travels on those points and in-fact booked my Hawaii tickets for 4 on the points itself not paying a penny from my pocket.

Now you may ask that all this sounds good but what card to start with and how to earn the points?

We are going to start with a card with hefty points offering to start with but more importantly that has a way to keep earning you more points.

Here is the first one: Chase Sapphire Preferred card with 60k points. You must own this card to start with and take advantage of the extra value of the points. Yes, points on this card are valued at a higher level compared to regular cards when used for travel rewards using Chase ultimate rewards program. 1.25 points (1.25 cents) per dollor thanks to a 25% point redemption bonus.

Now that's great that you get this card and get the initial points but this cards only have a limited category to earn extra points. 2X points in travel and dinning. You must use this card in those categories to maximize your points. But what about the other categories where these cards just offer 1 point a dollar?

Well that's where the Chase freedom unlimited comes in. Second must own card that offers 1.5 points per dollor spent in any category. Yes, you earn 1.5 points for each dollor spent no matter the category. And you should use this card every where else where Chase Sapphire Preferred card just provides 1 point only.

How to maximize the points

Now to maximize the points. Yes you read it right. There is a way to maximize the points by transferring  the points from your Chase freedom unlimited to your Chase Sapphire Preferred card and now you have the points earned on Chase freedom unlimited valued richly as if you earned them on Chase Sapphire Preferred card.

So if you spent 1 dollor using your Chase freedom unlimited, you earned 1.5 points and now when you transferred 1.5 points to Chase Sapphire Preferred card, these 1.5 points when spent for travel rewards from Chase Sapphire ultimate rewards program are equivalent to 1.5*1.25 = 1.875 points.

So there you have it... 2 must own cards to boost your points
Chase Sapphire Preferred card and Chase freedom unlimited.

By the way, if you can manage the categories every quarter add Chase freedom into the mix as well and do not forget to transfer the points to Chase Sapphire Preferred card.

Enjoy and spend these points wisely.

Image: Hloom via Flickr / CC BY-SA, 401(K) 2013