The right newbie card mixture when you’re new to journey rewards

Getting began with bank card rewards might be extremely overwhelming. Do you have to begin with money again or factors and miles? Which card household do you have to select first? Or, do you have to strive playing cards from completely different households? Will the annual price on playing cards be price it?

When novices ask for assist constructing a card portfolio, we all the time advocate taking a look at card applications that may scale — that means playing cards that may be paired with others later to construct a complete card technique with out sacrificing the outdated card to the sock drawer.

You will discover that transferable factors are extremely beneficial for avid and aspiring vacationers as a result of rewards might be redeemed throughout all kinds of airline and resort companions. However these journey bank cards typically have stricter approval necessities, so they don’t seem to be all the time an possibility as a first rewards bank card. The excellent news is that some issuers provide sure households of bank cards that permit you to begin with a no-annual-fee bank card that may pair with a higher-tier card in a while for max worth.

The straightforwardness of Chase Final Rewards — together with Chase’s 5/24 rule — make this program a very good place to start out for factors and miles newbies. And when selecting bank cards to earn Final Rewards, the Chase Freedom Limitless® and the Chase Sapphire Most popular® Card make a strong duo.

Learn on to learn the way these two playing cards can jumpstart your award journey.

Associated: How a lot are Chase Final Rewards factors price?

Why pair Chase Sapphire Most popular with Chase Freedom Limitless?

We’ll break down the complete advantages of every card under, however this is a fast rationalization of why you will need to begin with these two specifically. The highest motive is that Chase limits the variety of bank cards for which you’ll be able to efficiently apply. That is because of the issuer’s 5/24 rule.

Briefly, when you’ve opened 5 or extra private playing cards throughout all banks up to now 24 months, it is unlikely you will be accepted for many playing cards in Chase’s portfolio, together with the Freedom Limitless and the Sapphire Most popular.

When you’re beginning out, it is best to cowl a very powerful bases first. If you have already got a stable credit score rating, you will possible need to apply for the Chase Sapphire Most popular first as a result of it earns these beneficial transferable factors. However if you’re newer to the world of rewards bank cards, the Chase Freedom Limitless can be an ideal place to begin to earn money again.

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The most effective half? The Freedom award factors can later be transferred to the Sapphire Most popular if you apply for it down the road.

Associated: What credit score rating do you want for the Chase Sapphire Most popular Card?

Chase Sapphire Most popular highlights

Welcome bonus for the Chase Sapphire Most popular: Earn 60,000 Final Rewards factors after you spend $4,000 on purchases within the first three months of account opening.

Incomes charges: Earn 5 factors per greenback spent on journey booked by means of Chase Journey℠, 3 factors per greenback spent on eating (together with eligible supply companies and takeout) in addition to choose streaming companies and on-line groceries (excludes Goal, Walmart and wholesale golf equipment), 2 factors per greenback spent on all different journey and 1 level per greenback spent in every single place else.

Perks: The Sapphire Most popular comes with no overseas transaction charges, and cardholders can get pleasure from perks like a 10% factors bonus on their cardmember anniversary and a $50 annual resort credit score for reservations made by means of Chase Journey. The cardboard additionally contains quite a few journey protections like major auto rental insurance coverage, baggage delay insurance coverage, journey delay reimbursement, journey cancellation and interruption insurance coverage, prolonged guarantee safety and buy safety.

Annual price: $95

Causes to get it: TPG’s December 2024 valuations place this welcome bonus at $1,230, based mostly on maximizing the factors with resort and airline switch companions.

The wonderful thing about this card is that all kinds of things fall throughout the journey class — from airline purchases, taxis and tolls to parking heaps and journey companies. So, even when your day-to-day journey is proscribed to transportation, you’ll be able to rack up Final Rewards factors rapidly. You will additionally get wonderful journey protections on these purchases.

As for utilizing these factors, you’ve gotten a number of journey companions to select from. You may as well redeem Final Rewards factors straight for a number of eligible purchases by means of the Chase Journey portal at a price of 1.25 cents apiece.

Associated: After 15 years, why the Chase Sapphire Most popular ought to nonetheless be your first rewards card

Chase Freedom Limitless highlights

Welcome bonus for the Chase Freedom Limitless: Earn an extra 1.5% money again on all the pieces you purchase (on as much as $20,000 spent within the first yr) — price as much as $300 in money again.

Incomes charges: Earn 5% money again on journey bought by means of Chase Journey, 3% money again on eating, 3% money again at drugstores, and 1.5% money again on all different purchases.

Annual price: $0

Causes to get it: This card presents arguably higher on a regular basis incomes classes than the Sapphire Most popular. What actually makes the Freedom Limitless worthy of a slot in your pockets is that if in case you have a full-fledged Chase Final Rewards-earning card (such because the Chase Sapphire Most popular, the Chase Sapphire Reserve® or the Ink Enterprise Most popular® Credit score Card), you’ll be able to redeem your money again as Final Rewards factors.

And even when you do not have a kind of playing cards proper now, you’ll be able to all the time apply for one later and then mix your factors into the Final Rewards account of the extra premium card.

TPG’s December 2024 valuations peg the worth of Chase Final Rewards factors at 2.05 cents every. Meaning the 1.5% money again you will earn on nonbonus purchases turns into 1.5 factors per greenback spent (for a return of over 3%).

If money again is in the end what you are after, take into account a number of the different greatest cash-back bank cards, such because the Citi Double Money® Card (see charges and costs) that offers you a greater return on on a regular basis purchases. With the Citi Double Money Card, you will get 2% money again (1% if you purchase and one other 1% as you pay down your stability). You may as well convert the money again earned on the Citi card to Citi ThankYou Rewards factors by way of a linked ThankYou account.

Associated: Why the Chase Freedom Limitless needs to be the primary card in each pupil’s pockets

Utilizing the playing cards collectively

As talked about above, the rewards earned by the Freedom Limitless (and its sibling, the no-annual-fee Chase Freedom Flex®) develop into far more beneficial if you additionally maintain a higher-end Chase card. It’s because you’ll be able to solely convert your money again into transferable factors with a card that earns Final Rewards factors outright.

So, to redeem rewards earned with the Freedom playing cards as factors that may be transferred to companions, you want to maintain a higher-tier card just like the Chase Sapphire Most popular. Another choice is the premium Chase Sapphire Reserve for many who suppose the $550 annual price is definitely worth the card’s higher earnings, further advantages and $300 annual journey credit score.

The Ink Enterprise Most popular Credit score Card will also be an ideal various — or addition — for small-business house owners.

Even when you do not plan on transferring factors to journey companions corresponding to United Airways, Hyatt, Southwest Airways and British Airways, these playing cards assure 25% to 50% in additional worth when redeeming factors by means of the Chase Journey portal for journey at a hard and fast worth. In different phrases, somewhat than redeem every level for 1 cent every with only a Freedom card, you can redeem them at a price of 1.25 or 1.5 cents apiece by additionally having the Sapphire Most popular or Sapphire Reserve, respectively.

When you merely need money again and by no means plan on pairing your playing cards, it’s best to take a look at different cash-back bank cards with increased returns. However these trying to construct a long-term card technique can make the most of the Chase Freedom Limitless pairing capabilities with a card that unlocks Final Rewards redemptions.

Utilizing these two playing cards strategically places you in a very good place to earn and redeem journey rewards for max worth.

For starters, all journey purchases not made by means of the Chase Journey portal (like Uber rides and Airbnb stays) ought to go on the Chase Sapphire Most popular to earn bonus factors and get wonderful journey protections. You also needs to use the Sapphire Most popular for eating, choose streaming companies and on-line grocery purchases to earn 3 factors per greenback spent. And, because the card waives overseas transaction charges, you will need to use it for all purchases exterior the U.S.

Then, you will use the Freedom Limitless for drugstores and all different on a regular basis purchases.

When it is time to redeem your hard-earned factors, see this information to getting the utmost worth out of your awards and this information for locating candy spots within the Final Rewards program.

Associated: Chase Sapphire Most popular vs. Sapphire Reserve: Do you have to go mid-tier or premium?

Backside line

The Chase Freedom Limitless and the Chase Sapphire Most popular Card make an ideal Final Rewards points-earning workforce. Whereas the latter is not all the time the most suitable choice in your spending, it opens up some nice switch associate choices on the redemption aspect. Plus, with its present 60,000-point welcome bonus, the Sapphire Most popular can increase your Final Rewards factors stability — good for these simply beginning on the earth of rewards journey.

When you’re beginning to earn journey rewards with bank cards, these two playing cards needs to be your high precedence relating to functions — however be sure to take note of the issuer’s 5/24 rule to optimize your probabilities for approval.

For added info, take a look at our Chase Freedom Limitless evaluate and Chase Sapphire Most popular evaluate.

Apply right here: Chase Freedom Limitless

Apply right here: Chase Sapphire Most popular