If you’re like most people, wallet space is at a premium. I know I have to constantly prune it to ensure I don’t have a wallet that looks like George Costanza’s in that episode of “Seinfield”.
With the flurry of credit card ads that inundate our culture on a daily basis, it can be a bit daunting to figure out which ones deserve a spot in your wallet. I figure I’ll lay out what credit cards I carry and a little reasoning as to why.
A disclaimer - I carry no balances, so APR isn’t as much of an issue for me. Most of the rewards I describe are pretty much worthless/will be eaten by interest charges if you carry any balance. Just wanted to lay that out there.
1. Citi Dividend Platinum Select Mastercard
The tried and true member of my credit stable. I’ve had this for a few years - since 2005. It pays 1% cash back on all purchases, with 5% on purchases made at grocery stores, drug stores, gas stations, convenience stores and utility payments. The pay-out max is $300 in a calendar year, but if you shop inside their “Bonus Cash Center”, the pay-out is unlimited. It also comes with free travel insurance benefits when used to book travel. I’ve used this card across the globe - from the US to Europe to India and back - and it has worked like a charm. Citi also has some pretty vigilant fraud detection - they called my cell phone immediately when a merchant accidentally did 2 pre-authorizations on my card for $1.00. If you pay off your balances, this is a solid card to have. If you carry a balance, the APR is a bit steep, so you might want to look elsewhere. The other thing that is a bit annoying is the lack of PayPass - Citi says they’ll be rolling it out soon, but I haven’t heard much from them about it.
2. American Express Blue Cash
This is the newcomer to the wallet. I recently signed up for this one due to the fact that I didn’t have an Amex account (and I’ve been thinking of joining Costco), as well as the interesting cash back options/Amex benefits. This one comes with up to 5% back at drugstores, grocery stores and gas stations. They are currently running a 0.00% introductory APR for 6 months as well as a 4.99% permanent balance transfer rate. In addition, it doesn’t have an annual fee like a lot of Amex cards. The warranty extending/buyer protection benefits that American Express is known for are all included too - making this an attractive option for those who don’t need the super-duper benefits of an Amex Gold card, but want some of the basic stuff. As I use the card more, I’ll have to expand my review.
With these things in mind - remember that credit card debt is bad news bears. I treat these like “debit cards on steroids” and pay them off every month without exception. If you aren’t good at controlling your spending, I’d advise you to stick with debit cards or cash for the time being. However, if used responsibly, you can get some cash back for those purchases you are already making with these cards.
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