Your Guide to Credit Card Rewards in the USA: Maximize Benefits!

Yesterday, I had a conversation with a friend who has been building their credit history for a month. They just scored the Amex Gold and Platinum cards, amassing an impressive total of 275,000 points with offers of 100K and 175K, respectively. This reminds me of my own journey and the obstacles I faced along the way. I feel it’s essential to share some insights and strategies, as well as provide updates on future developments. 🌟

The Allure of American Credit Cards

Credit cards like Amex offer outstanding rewards, turning your travel dreams into reality. Premium business class tickets and luxurious hotel stays are no longer just fantasies. 🏨✈️ Some individuals boast dozens of cards and hundreds of thousands of points — it’s something I aspire to achieve too!

Of course, with high-tier cards come annual fees and spending requirements. Many of the strategies for maximizing points can fall into a gray area and may carry risks, including the possibility of being permanently banned by banks. While I know various methods, I won’t share any that I wouldn’t personally use. A steady approach over a year and a half can get you enough points for six business class flights between the US and China! 🚀

Step 1: Secure Your SSN

First things first: obtaining your Social Security Number (SSN) is a must. While it’s typically awarded to those with a job, working on-campus — at places like cafeterias or shops, or as a Teaching Assistant — qualifies as employment. If you prefer not to work, you can simply apply for your SSN and leave. This is a crucial first step! 📄

Step 2: Start with Chase

Many are familiar with Chase’s notorious 5/24 rule, which states that if you’ve obtained five cards from any bank in the past 24 months, you won’t be approved for a sixth card from Chase. This is one key reason to prioritize applying for Chase cards early in your journey. Strategize your initial card applications wisely, considering other banks only after you’ve secured Chase cards. 📈

Understanding the Chase Trio

The famed trio of Chase cards — the Freedom Unlimited (CFU), Freedom Flex (CFF), and Sapphire Preferred (CSP) — offer a minimum of 117,000 points in bonuses, enough for almost two business class flights! Start with these three to build a solid foundation for your credit card portfolio. 💳💵

How to Apply: Practical Steps

Begin by opening a Chase Checking Account and deposit as much money as you can. This will boost your chances of being approved for credit cards. Remember, there are two types of bonuses when opening an account, so choose the one that is most appealing to you. Sometimes, applying in-person at a branch might yield better offers than applying online, as bank representatives can help you with your specific situation. 🤝

What is a Hard Pull (HP)?

When you apply for a new card or loan, banks conduct a hard pull (HP) on your credit history, leaving a record that can affect your credit score. Be cautious — opening three or four cards in a single month can negatively impact your future applications! 😟

Planning Your Applications

It’s safest to apply for the CFU or CFF first. Aim for the CSP after your credit history is at least a year old, and space new applications 3-6 months apart for the best results. 🎯

Exploring Business Cards

Business credit cards might seem fancy and exclusive to CEOs, but even small enterprises or freelancers can apply for them. However, be cautious: many visa holders in the US, such as F1 or H1B visas, are restricted from applying for business credit cards. If immigration agencies scrutinize your application later, the consequences could be serious. ⚠️

Considering Amex Cards

The Amex Gold and Platinum cards aren’t your ordinary credit cards; their application thresholds are relatively attainable. However, applying for the Platinum before the Gold won’t earn you any rewards. Amex has a high annual fee, so be mindful of your initial card limit defined by the 5/24 rule. Choose wisely and apply for what suits your needs best! 💡

In this limited space, we’ve covered the essentials of diving into the world of US credit cards. With patience, strategy, and knowledge, you can navigate this rewarding landscape successfully. Happy carding! 🎉