The biggest mistake most people make is using a single credit card for all of your purchases, as there is not a card that will allow you to maximize earnings across all of your categories. Credit card companies are in the business of making money and having a single card that provided the highest earning categories would cost them millions a year. Although it is not the easiest option, spreading your spend across cards that maximize your return on investment will allow you to earn outsized value in a world where your dollar continues to diminish. Let’s take a look at what cards you should be using for different categories!
Groceries and Restaurants
A recent Census survey(January 2024) showed that the average American household spent over $1,000 a month on groceries! That is $12,000 worth of spend every year that you are leaving on the table if you are not using a card that earns either cash back or points on groceries, which could be up to 48,000 points or even $180 cash back on the low end.
- American Express Gold ($250 annual fee with a current intro bonus of up to 90K AMEX points)
- Earns 4X points on every $1 spent at supermarkets(Grocery stores that do not include wholesale clubs like Sam’s, Costco, BJ’s) up to $25,000 a year.
- Earns 4X points on every $1 spent at restaurants.
- American Express BlueCash Everyday ($0 annual fee with a current intro bonus of $200 back)
- Earns 2X points on every $1 spent at supermarkets(Grocery stores that do not include wholesale clubs like Sam’s, Costco, BJ’s) up to $6,000 a year.
- Earns 1X point on every $1 spent at restaurants.
- American Express Blue Cash Preferred ($95 annual fee with a current intro bonus of $250 cash back)
- Earns 6% cash back on every $1 spent at supermarkets(Grocery stores that do not include wholesale clubs like Sam’s, Costco, BJ’s) up to $6,000 a year.
- Earns 1X point on every $1 spent at restaurants.
- Chase Freedom Unlimited ($0 annual fee with a current intro bonus of $200 cash back)
- Earns 1.5% cash back on every $1 spent.
- Earns 3% cash back on every $1 spent at restaurants.
Travel
Travel is arguably the most difficult category to determine which card to use, as everyone has different things that they value when it comes to travel. For me, I personally want a card that provides me with outsized earning, status with hotels/airlines/rental car companies, and lounge access. For others, they want “credits” or discounts that they can use to offset some of the cost of travel. Below are a few of my favorite travel credit cards and their associated perks!
- American Express Platinum ($695 annual fee with a current intro bonus up to 175K AMEX points)
- 5X points on every $1 spent on amextravel.com or with the airline directly
- $200 Airline incidental credit
- $189 Clear Plus Credit
- Free TSA PreCheck or Global Entry
- Marriott Bonvoy Gold Elite Status
- Hilton Honors Gold Status
- National Emerald Club Executive Status
- Delta SkyClub Access
- American Express Centurion Lounge Access
- Trip Delay Insurance
- Baggage Insurance
- American Express Hilton Aspire ($550 annual fee with a current intro bonus up to 175K Hilton Honors points)
- 14X points on every $1 of Hilton spend
- 7X points on every $1 spent on amextravel.com or with the airline directly
- 7X points on every $1 spent on dining
- 3X points on every $1 spent on all other purchases
- Free yearly night reward
- $400 Hilton Resort credit
- $200 Airline incidental credit
- $189 Clear Plus Credit
- Hilton Honors Diamond Status
- National Emerald Club Executive Status
- Trip Delay Insurance
- Baggage Insurance
- American Express Delta Platinum ($350 annual fee with a current intro bonus of 90K Delta SkyMiles)
- 3X miles on every $1 spent on Delta purchases
- 3X miles on every $1 spent directly with hotels
- 3X miles on every $1 spent on dining
- 2X miles on every $1 spent on groceries
- 15% discount on award redemption travel on Delta.com
- Free checked bag
Extended Warranty or Return Protection
When it comes to purchases that you may need an extended return window or extended warranty, there is no competing with the American Express Platinum, American Express Delta Reserve, or the American Express Hilton Aspire. I recently used the extended warranty for a purchase that I made and it was extremely easy, resulting in American Express sending me a check for the full value of the item!
All three of these cards offer the following benefits to protect some of your most important purchased:
- Return Protection
- If you try to return an eligible item within 90 days from the date of purchase and the merchant won’t take it back, American Express may refund the full purchase price excluding shipping and handling, up to $300 per item, up to a maximum of $1,000 per calendar year per Card account, if you purchased it entirely with your eligible American Express® Card. Purchases must be made in the U.S. or its territories.
- Extended Warranty
- What if the color fades on your new flat-screen TV? Or your food processor starts rattling instead of slicing and dicing? Chances are it will happen right after the Manufacturer’s Warranty runs out. Fortunately, when you use your Eligible Card to make a Covered Purchase, you can get up to one extra year added to the Original Manufacturer’s Warranty. Applies to warranties of 5 years or less on Covered Purchases in the United States or its territories.
- Purchase Protection
- Sometimes your favorite new purchase gets stolen or accidentally damaged. But when you use your Eligible Card for Covered Purchases, your Membership can help protect them for up to 90 days from the Covered Purchase date, subject to the Coverage Limits. *Up to $1,000 per Covered Purchase, up to $50,000 per calendar year.
Where do you spend the majority of your money? Are you using the right card or are you earning 1 cent back on every purchase instead of up to 8 cents? Drop a comment below and we can tailor your spend to specific cards to maximize your return!
The Points Authority: Mastering The Points Game 