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Best Credit Card For Beginners In 2020 | Which Credit Card Is Right For You?

February 22, 2020


what’s going on everybody David here
back with another video today we’re gonna talk about if you are a beginner
in the rewards credit card game we’re gonna have a little talk but first off
on this channel we talk about inspiring people to travel more recent points that
sounds like something interesting to you please hit that subscribe button don’t
forget to the little Bell notification so you can get future updates on my
videos okay so this is for beginners or people who have you might have a couple
of credit cards already but you really don’t know exactly what you’re doing
your strategy that’s what we’re gonna talk about today I’ve been off for about
a week so about six days since I posted my last video and I got sick last week
and I was only sick for about two maybe about two two and a half days and that
wasn’t the issue the issue was after after I started feeling better I lost my
voice and so I couldn’t talk and so if you can’t talk it’s kind of hard to do
these videos so anyway let’s go ahead and talk about this so when it comes to
travel reward credit cards or reward credit cards cash back cards there’s so
many out there and there’s so many so much advertising that you see on TV with
comes to venture so Capital One cards Chase American Express which ones do you
get so which card do you get I like to tell people especially if you’re
starting out keep it simple and even when you when you have cards you still
want to keep it simple like even if you’ve been doing this for a while you
still want to keep it simple and you can really over complicate this when it
comes to these these rewards credit cards because there’s so many different
ways that you can redeem points and and earn points and and all that and it can
become a full-time job just trying to figure out how to maximize everything
now in most situations you do want to maximize as much as possible but
sometimes you can’t avoid that some of the situations you might have you might
be in situation where you can’t be flexible so you’re gonna have to spend a
little bit more when you fly out of an airport at a
certain time so sometimes you can’t you you can’t maximize and you just have to
kind of roll with that but let’s go ahead and talk about beginner so when
you’re just starting out getting rewards credit cards or even before you get the
current the cards just your thought process what card should you be looking
at so I always tell people there are four major credit card issuers that you
want to focus on when you’re starting out Capital One City American Express
and chase those are the four that you should focus on because you can build an
ecosystem around three of those and then Capital One they have some different
cards that you can get I wouldn’t really call it an ecosystem but Capital One
cards are good especially if you if you have bad credit you can start with
Capital One secured a credit card and then work your way into the venture card
and if you have a business get a spark card so that’s that’s a good option
especially if your if your credit is not is not at a high level 750 or above then
you can look at some of these capital one venture card and stuff like that but
when it comes to the other cards that are out there to chase cards the
American Express cards the city cards those are all good ecosystems and it’s
just gonna come down to which one you select as far as how you want to go
about it so you don’t have any credit cards right now you’re looking at
getting credit cards I always recommend going with Chase that’s just i like
chase i have chase to this day and that’s what i focus my points on my my
chase ecosystem so I always recommend chase first they have a 5:24 rule and
that basically means that within a 24 month period you can only have five new
credit card accounts and so that’s across the board so it could be city
cards American Express venture the venture card so capital one all these
different card issuers and all these different cards you can only have five
new accounts in a 24 month period if you have over that
they’re not gonna lie once you get to five they’re not gonna allow you to get
any cards so chase will not allow you to get any cards with them so that’s very
important when it comes to your strategy because if you don’t start with them and
you go with let’s say you go with city and you get the double cash card and
then you get the city premier and the city for stage well that’s three cards
already and now you’re digging into you’re getting close to that five twenty
four and so you won’t be able to get any chase cards for twenty four months at
that at that time so I always tell people when you’re starting out look at
the chase cards give them a give them a look do your research if it works in the
some of the things that I look at when it comes to the cards I look at signup
bonuses so I look at all the cars that are across the line then try to plan it
ahead so if I want to get let’s say five cards in the first couple of years then
I look at the signup bonuses the current signup bonuses I do a lot of research on
the transfer partners because they come in they’re really important if you want
to travel you want to make sure that you get some transfer partners that you’re
you’re happy with so I look at that as well I also look at the ways that I can
redeem points so you might be in a situation where you want to get cash
back or you want to get gift cards or just different things like that so I
also look at that I also look at long term earn possibility with the credit
card so I’m not just looking at the signup bonus I want to know is this a
card that I can have for years to come and still use that card for my everyday
purchases like going out to a restaurant eating or going to a grocery store and
things like that so I’m looking at that as well and then I look at the the
branded credit cards like the hotel brand and credit cards the airline
branded credit cards I want to build an ecosystem where I can get some of those
cards too because I might like to fly on United so I I want to get that United
credit card but does that card work with the ecosystem that I have so those are
other things that I look at so there’s a variety of different ways that you need
to go about when it comes to getting these credit cards whether there’s a
variety of different things that you need to think about before
and then go ahead and start getting those credit cards because once you get
a credit card I tell people this all the time once you get a credit card you’re
going to want to keep that card and either keep the card or downgraded but
keep the account so you want to keep that credit limit that’s very important
so what I’m saying is if you make mistakes early on then you first off you
need to find out if they have a downgrade path and that’s another
important thing because some cards you’ll get some credit cards you’re
gonna get they’re not they’re gonna have an annual fee and they’re not going to
have a downgrade path so you’ll have the card but you’re not going to be able to
downgrade it to something else so you’re stuck paying that annual fee and then
that’s when you’re in a situation where it’s like oh you know what maybe I maybe
I should cancel this card which you really don’t want to do but if you have
to you have to write you don’t want to pay a ninety five dollar annual fee
every year if you’re no longer using the card so it’s very important to look at
those paths – do I have downgrade don’t have a downgrade path with the card so
other things look at so the cards that I would recommend when you’re first
starting out if you want to go with the flexible points and flexible points just
like I mentioned Capital One the chase chase cards City and American Express
those are giving you the the flexible points and when I mean flexible points
they have transfer partners you can transfer your points to these partners
and use it for airfare hotel things like that so that’s what you want to focus on
so the cards that we’re looking at the capital one venture card I think is an
excellent card for beginners it’s it’s simple you get two points for every
dollar spent on all purchases so you don’t have to think about Oh am I gonna
get two points or every dollar spent on this purchase and then three points or
every dollar spent on this purchase which categories because when you first
start out you’re not going to know the different categories you’re not even
gonna think about it because it’s not a normal everyday thing so you’re not
going to automatically know which card to pull out to maximize your your earn
with the card so with cap with a capital one venture card it’s great because
across the board two points every dollar spent you don’t have to think about
anything so that’s good you also get the global entry so you get go
into credit so that’s once every four years which is another huge benefit if
you want to travel because it allows you to kind of expert it you get expedited
through the line when you go and go through the checkpoints at the airport
so that’s good so the venture one card I think is an
excellent choice for beginners I also like the Chase Sapphire Preferred card
I think the Chase Sapphire Preferred card got a little stronger on the last
couple of months just because of the Chase Sapphire Reserve raising their
annual fee from 450 to 550 and so now the Chase Sapphire Preferred people are
looking at in a little a little more now because it becomes a real good option
because they haven’t changed anything yet which I’m hoping that in the future
they do make some changes with their card but it’s good because it’s a good
card because it’s it gets you into that Chase ecosystem and you still get some
of the perks that you would get with a Chase Sapphire Reserve like the primary
car rental insurance and things like that some pretty good travel insurance
as well and you don’t have to pay that hefty $550 annual fee and also you’re
gonna get the 60,000 signup bonus which is good right now that’s a that’s a
pretty good sign of bonus so real good transfer partners and they have a good
travel portal too so the Chase Sapphire Preferred I think is still a great card
for beginners now when it comes to sitting in American Express some of
those cards are good I think American Express has some decent cards you could
look at the American Express green card I think that’s a real good card it’s
it’s comparable to what you would get with the Chase Sapphire reserve without
the lounge access and some of those other things like that but it does give
you some pretty good iron possibility with the card and then you can build
into that ecosystem but like I said I would start with Chase and go that route
now for me I actually started with Citi and then I quickly left city I will say
left city but I quickly moved on from city and started getting some chase
cards but the first card that I got was the city premier card and it was a
pretty good car but I didn’t know what I was doing so I
I pretty much got my points and I did some bad transfers transferred over to
Virgin America lost half my points in that transfer because you don’t always
transfer one to one so I didn’t realize that and so I made a few mistakes but I
was able to rebound because when a Alaska Airlines bought out the Virgin
America then I was able to transform our points over to Alaska Airlines and then
they gave me a bonus and that bonus pretty much got me back to 250 thousand
so that was good but when it comes down to city
yeah City is decent they have the double cash card which i think is a great card
they have the the premier card which is great and then they also have the city
prestige park so you can build an ecosystem around them too but I would
say beginners look at that venture card venture now our capital one now has
transfer partners so that’s good and they also have an eraser tool which will
allow you to pretty much use your card and for anything for any type of travel
purchases which is good but when you’re using the eraser tool you’re not going
to maximize when it comes to your your points when you’re using your points the
value is going to be a lot less than it would be if I transfer my points out to
one of the transfer partners so the two cards the venture card and the chase F I
prefer those are the two that I recommend for flexible points so we’ve
talked about the flexible point cards now I want to talk about some of the
other cards that are out there that you might want to consider now these aren’t
flexible points but these are cards that are either airline branded credit cards
or hotel branded credit cards and I think they give you some really good
options the first card I want to talk about is the United explore card I think
the United explore card is an excellent card for beginners you get the Global
Entry so every four years you get that credit for Global Entry which i think is
really good and then you’re gonna get two points for every dollar spent on
airfare the earn possibly on the card is not the greatest I’ll tell you that
right off the bat but you still have a few categories that you can work with
that that will make it make it a good learning process and then you also get
Club access you get two passes so you can dip your feet into the the
lounge access with United lounges and so you can kind of see what you’ve been
missing all these years when it comes to Lounge axes
I think lounge axis is really something that is underrated for most of us
because we never use them back when we first started traveling and then once
you do start using these these lounges and you realize hey this changes your
whole perspective when it comes to travel because now I don’t have to worry
about getting to the airport at the last minute that’s what that was my old
routine get to the airport very last-minute that way and I’ll have to
sit in the terminal and and go and buy expensive food and all that kind of
stuff but with lounge access now you have
access to and some in some cases you have access to food you always have
access to beverages so there are a lot there’s a lot of ways to save money just
by going to a lounge so that that’s something to consider too so the Uniting
score card that’s one that I recommend for beginners also the world of high
card I think the hyatt program when it comes
to hotel branded credit cards I think the Hyatt program is very very good and
for beginners the world of Hyatt card is is probably the the best card for
beginners now there are other cards that are out there the American Express
aspire card I think is by far the best hotel brand and credit card out there
however it comes with a hefty $450 annual fee I didn’t talk about the
annual fees on all the cards so let me let me go over that real quick so with
the venture card it’s a ninety five dollar annual fee
they waive it the first year so you don’t have to pay that for the first
year and then after that you don’t have to pay the Chase Sapphire Preferred $95
annual fee for that card and the United explore card another $95 annual fee for
that card and then the world of hyatt card is another $95 annual fee now
looking at the annual fees and I know there are some people that are
uncomfortable when it comes to annual fees and I totally understand it I was
the same way but when you’re looking at annual fees you’re trying to see if if
that card is valuable enough to get so when I say valuable enough
you’re gonna get that $95 value out of that card every year and some cards are
easier to do that than others the united explore card is an easy card to get that
$95 value because first off the global entry if you’ve never signed up for
global entry before sign up for global entry you’re gonna get that that right
there that’s $100 credit so if you do travel I think you should consider
Global Entry anyway so that that’s you can save a little bit money there and
then also looking at the check bag so if I travel maybe twice per year I get the
free check bags as long as I’m flying on United and so getting the card would I
would benefit from that right so that’s another thing maybe $25 for each way so
you can easily in two trips you can easily get your bags taken care of and
that’s if it’s just you traveling now if you’re traveling with other people then
they also get free check bags it’s up to a limit I think it’s five people or
something like that so that’s something to think about too
so you just want to make sure every year you can you can maximize on that and get
that ninety-five dollar annual fee taken care of by using the the benefits of the
card a world of high card another easy card to hit that that annual feed
because every year you get a free night and most situations a free night and a
hotel pretty much any hotel especially if it’s
a major city it’s gonna be ninety five dollars or more so you can really really
make out when it comes to that when it comes to that value so you just need to
work those out now with a Chase Sapphire Preferred it’s a little different you
are gonna need to do some use some different benefits in order to get to
Chase Sapphire Preferred annual fee down to nothing
the venture car like I said that first year you don’t have to worry about the
annual fee so that’s good and then after that then that’s when you’re gonna
really need to work with the card now when I was saying keep it simple I
really mean that don’t get a bunch of cards all upfront get one card you can
get one card for the whole year and you’re fine especially if you only
travel maybe twice per year one card is gonna suit your needs because with that
signup bonus you’re going to have free round-trip tickets anywhere in the
US and if you want to leave the US and go somewhere else you might spend maybe
forty five thousand for a round-trip economy seat so you only really need one
car so that’s something that you should really really understand you don’t have
to make it complicated and I’ve talked to plenty of people they get one car
then they want to get in every like every couple of months they want to get
a card or some people try to get they try to double up or triple up get three
cards in one one day or three cards and within a week or something like that and
trying to move forward with that you don’t need to do all that you really
don’t all you need to do is to get one card and learn how to use that card
maximize that card and then start looking at some of the different cards
that are available and then that will help you make better decisions because
you don’t want to just get out and get a bunch of cards and blow the 5:24 rule
and then now you’re looking at okay well now I have to wait you don’t want to do
that you kind of want to do that slow process I only get cards what I need
them and I base that on my travel needs so if I’m traveling somewhere and I say
oh I want to go to this destination but I don’t have enough points in order to
do that and it’s six months prior to the trip then I’ll I’ll look at some of the
different credit cards that are out there I’ll do my research and then I’ll
get a credit card I’ll get a 50,000 sign up poem for 60,000 sign up bonus and
then that should be plenty for whatever trip that I want to take so just
something to think about when it comes to these cards you do not have to you do
not have to get a bunch of credit cards and that’s the biggest advice I can give
you right now don’t get a bunch just get one just get one credit card use that
card learn how to use it and then from there then you can work on getting some
other credit cards but I want to know what you guys think you guys if you guys
are beginners if you have experience please post it down below what your
strategy is and if you have any questions any other questions please
post it down below as well if you like this video please give me a thumbs up
please subscribe for more and I’ll talk to you the next one bye

16 Comments

  • Reply P GILL February 17, 2020 at 12:38 am

    First!

  • Reply fernstv February 17, 2020 at 12:40 am

    David is back with the video series, glad to hear that you are well my friend. Keep those videos coming. ๐Ÿ‘๐Ÿ’ช

  • Reply WaneM February 17, 2020 at 12:41 am

    lol… P GILL yeh u are..

  • Reply Trap Country February 17, 2020 at 12:47 am

    Lovely content! Keep it up! Would you like to be YouTube friends? :]

  • Reply Trap Country February 17, 2020 at 12:47 am

    Goob job! ๐Ÿ™‚ Keep it up! Would you like to be YouTube friends? :]

  • Reply Travel Explore Click February 17, 2020 at 12:57 am

    Will you be getting this card in 2020 and why or why not? ๐Ÿ”” SUBSCRIBE HERE: https://www.youtube.com/c/DavidClarkphotography?sub_confirmation=1

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  • Reply Neno February 17, 2020 at 12:58 am

    Unfortunately, not everyone canโ€™t start with Chase. Chase is very picky when comes to first timers. I got denied for have a thin file and having a 735 FICO score. If you less than 1 year of credit history, forgetaboutit!

  • Reply Branson February 17, 2020 at 1:06 am

    Is discover it a good card to start with to?

  • Reply D. Anderson February 17, 2020 at 1:50 am

    Respectfully ๐Ÿ˜™ I have to agree to disagree. Chase is very picky, ex: told my nephew and friends. (Check the pre-approval links 1st) 1. Discover, 2. Capital One Quicksilver or Platinum which you can product change to a Quicksilver.

    6 mths later I got my nephew in NFCU as well he was approved for the CashRewards Visa for $10,000.

    Most of all where ever you're bank relationship is with is a good idea to try that strategy 1st as well. ๐Ÿ‘๐Ÿ’ณ๐Ÿ’ณ๐Ÿ’ณ๐Ÿ’ณ

  • Reply Adrian Perry February 17, 2020 at 1:58 am

    Nice one Dave ๐Ÿ’ช๐Ÿพ

  • Reply CastrejonHDTV February 17, 2020 at 6:18 am

    That's a lot of driving for errands hahah.

  • Reply Neck of the Woods Updated February 17, 2020 at 8:02 am

    Man, You laid out a sensible Strategy on how to go about getting and using These Credit Cards.

    This is one of your best Videos yet.

  • Reply Bruce Law February 17, 2020 at 10:12 am

    Nice to have you back

  • Reply Victor Mendoza February 17, 2020 at 11:45 pm

    Get the Well Fargo propel then get the wells fargo signature Visa and get a 50% boost on airfare all for no annual fee.

  • Reply Doc February 18, 2020 at 5:55 am

    Im driving in my car, listening to David driving in his car! ๐Ÿ™‚

  • Reply jordan23ww February 22, 2020 at 1:49 pm

    Really enjoyed this video! There was a lot of helpful information! Thank you! I subscribed today! Looking forward to watching your old and future videos!

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