Middle-Premium Credit Card Guide

Credit cards come in many tiers, and now that we have gone over some beginner cards, let's look at the next rung of the ladder. Middle-premium cards come with sizable signup bonuses, usually between, 25,000 and 50,000 points/miles. They do have fees, typically between $45 and $195 dollars per year, although the first year's fee is often waived. They have many fringe perks with travel and purchase protection, and most do not have any foreign transaction fees. They lie just below the full premium threshold of consumer cards. Many co-branded airline cards fall squarely into this region, as do some of the more famous bank and charge cards. A Transunion credit score of around 640 or higher is usually required to obtain cards in this segment.

Chase Sapphire Preferred

Photo: Chase.com

This card has long been a favorite of the churning community. It has a fantastic signup bonus of 50,000 Ultimate Reward points after spending $4,000 in three months, which can be transferred to a variety of airline and hotel programs, or they can be redeemed through the Chase portal directly at a rate of 1.25 cents per point. It also comes with a variety of fringe benefits including travel and purchase protection, and no exchange rate fees. The one that has really stood out to me, though, is the dedicated customer service line. They actually treat you like a real human, and are helpful and are usually pleasant. That alone is worth the price of admission. Note that the Chase 5/24 rule does apply to this card.

• 50,000 Ultimate Rewards bonus points after $4,000 spend in the first three months
• 2X points on travel and dining charges (wide category)
• 1 point per dollar on all other charges
• 1:1 point transfer to travel partners like United, Korean Air, Southwest, BA, and Hyatt
• No foreign transaction fees
• Travel and purchase protection
• 24/7 customer service line that is nice and polite
• Visa
• Metal core card (feels much better than a normal plastic card)

Application Link here. Please use this link when applying to help support this blog.

American Express Premier Rewards Gold Card

Photo: americanexpress.com

The Gold Card was a standby in many travelers' wallets for decades. In recent years, however, competition has started to make it a relic of the past due to its low sign up bonus, and low earning power in addition to a steep annual fee of $195.

• 25,000 Member Rewards Point bonus after spending $2,000 in the first three months
• 3X points on flights booked directly with airlines (No Kayak, Orbitz, or Priceline here...)
• 2X points at US gas stations and supermarkets
• $100 airline fee credit per year (Must select airline at beginning of the year, and only applies to incidentals)
• $75 hotel credit when staying at least two nights in an American Express Travel participating property
• Premium customer service
• No foreign transaction fees
• No pre-set spending limit (It's a charge card, and thus must be paid off in full at the end of each month)
• $195 annual fee (waived first year)

The American Express Green Card, with an annual fee of $95 fits with the other cards in this segment, but was excluded due to its lack of a signup bonus, and exceptionally low earning power.

Application Link here. Please use this link when applying to help support this blog.

Citi ThankYou Premier Card

Photo: citi.com

The Premier Card had signup bonuses, but none are available at this time. It has good earning power, and the ThankYou points program offers a variety of transfer partners and direct redemption options.

• 3X points on gas and travel, 2X on dining and entertainment, 1X on all other purchases
• Points are worth 25% more through the Citi portal when they are redeemed for travel
• Wide variety of transfer partners including HHonors, Eva, Etihad, FlyingBlue, Qantas, Qatar, and Krisflyer
• Travel, lost baggage, and price protection
• Mastercard
• No foreign transaction fees
• $95 annual fee (waived first year)

Co-branded Credit Cards

Gold Delta SkyMiles Credit Card

Photo: americanexpress.com

The Gold Delta card offers a nice mix of amenities for frequent Delta customers, including free checked bag, priority boarding, and double miles on Delta purchases. The signup bonus is sizable, at 30,000 miles after $1,000 spend in the first three months. You can also get a $50 statement credit if a Delta purchase is made during the first three months. The $95 annual fee is waived during the first year.

• 30,000 SkyMile signup bonus after spending $1,000 in the first three months
• $50 statement credit after making a Delta purchase in the first three months
• Free checked bag on Delta flights (up to $50 roundtrip)
• 2X miles on Delta purchases
• Priority boarding and discounted Sky Club access
• No foreign transaction fees
• American Express
• $95 annual fee, waived during the first year

Application Link here. Please use this link when applying to help support this blog.

Citi AAdvantage Platinum Select Mastercard

Photo: citi.com

The name is a mouthful, but overall this card offers good value for frequent domestic travelers on American Airlines. It has a free domestic checked bag benefit for the cardholder and four companions, as well as priority boarding. The signup bonus is a respectable 30,000 miles after spending $1,000 in the first three months. There are sometimes targeted offers with substantially higher signup bonuses.

• 30,000 mile signup bonus after $1,000 spend in the first three months
• First checked bag is free for cardholder and up to four companions on the same itinerary for domestic flights
• Automatic Group 1 boarding on domestic flights
• 2X miles on all American Airlines purchases
• Reduced mileage awards when redeeming points
• 10% of redeemed miles back each year (up to 10,000 miles)
• Travel and purchase protection
• Mastercard
• No foreign transaction fees
• $95 annual fee (waived first year)

United MileagePlus Explorer

Photo: Chase.com

The Explorer card offers a solid signup bonus and great benefits for those who often fly United. The 30,000 mile signup bonus is often bettered by targeted offers on the MileagePlus online portal or through mail with offers of 50,000 or 70,000 miles with the same $1,000 spend requirement. It comes with a free checked bag benefit for the cardholder and one companion on all United operated flights when the purchase is made with the card. Priority boarding and two United Club passes per year are included.

• 30,000 mile signup bonus (50,000 or 70,000 targeted) after spending $1,000 in the first three months
• 2X miles on United purchases, 1X on all others
• Free checked bag for cardholder and one companion on all United operated flights, including international
• Two United Club passes per year
• Priority boarding on United (Group 2)
• Spend counts toward status on United ($25,000 per year for Silver)
• Travel and purchase protection
• 10,000 bonus miles each year if $25,000 is spent over the course of that year
• No foreign transaction fees
• Visa Signature
• $95 annual fee (waived first year)

That is only a small sample of the many middle-premium co-branded credit cards that are available. Chase has a wide variety, many of which have the 5/24 rule applied. Citi and American Express maintain a mild selection as well. Depending on your needs, one of these could be a better value proposition than the above.

Chase Middle-Premium Co-branded Credit Cards

Southwest Rapid Rewards Premier Credit Card

• 50,000 bonus points after $2,000 spend in first three months
• $99 annual fee

British Airways Signature Visa

• 50,000 bonus Avios after $3,000 spend in the first three months
• $95 annual fee

Marriott Rewards Premier Credit Card

• 80,000 bonus points after $3,000 in spend in the first three months (note that Marriott rewards have a lower per-point value than most other programs)
• $85 annual fee

IHG Rewards Club Select

• 60,000 bonus points after spending $1,000 in the first three months
• $49 annual fee (waived first year)

The Hyatt Credit Card

• 2 free nights at a Hyatt hotel after $2,000 spend in the first three months
• 1 free night per year 
• $75 annual fee

Citi Co-branded Middle Premium Credit Cards

Expedia+ Voyager Card

• 25,000 bonus Expedia+ points after $2,000 spend in the first three months
• $95 annual fee

Citi Hilton HHonors Reserve Card

• 2 free weekend nights after $2,500 spend in the first four months
• $95 annual fee

American Express Co-branded Middle-Premium Credit and Charge Cards

Platinum Delta Skymiles Credit Card

• 35,000 mile and 5,000 MQM bonus after spending $1,000 in the first three months
• $100 statement credit for a Delta purchase in the first three months
• $195 annual fee

Starwood Preferred Guest Credit Card from American Express

• 2 free nights at Category 1-5 hotels after $3,000 spend in the first three months
• $95 annual fee (waived first ear)

Hilton HHonors Surpass Card from American Express

• 75,000 HHonors point bonus after $3,000 spend in the first three months
• $75 annual fee

The Mercedes Benz Credit Card from American Express

• 10,000 Membership Rewards point bonus after $1,000 spend in the first three months
• $95 annual fee

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Zero Financial Zerocard

tldr;
Zero Financial, a startup, claims that they will be offering a no-fee credit card with different levels of cash-back rewards based on your annual spend that acts like a debit card, drawing money from a linked savings account that pays high interest automatically. You can't spend more than you have. To bypass some of the spending requirements for a better rate, you can sign up to be on the waitlist here.

Skepticism is good. Skepticism is often what keeps us from becoming dead, penniless, and of course, deader. So let's keep that in mind when talking about this new startup(groan, I know right), that claims to be offering the greatest thing in credit cards since the original Chase Sapphire.

They call themselves Zero Financial, and purport to be developing a no-fee Visa credit card, that effectively acts like a debit card whole rewarding you like a credit card. The gist of their pitch is that the myriad of rewards programs, rotating spending categories, transfer programs, etc. not only make life more difficult, but can also lead to overspending, and eventually, credit card debt. With their card and accompanying app, named Zerocard, and Zero respectively, you can keep track of your spending, and only spend as much as you have just as you would with a debit card, while earning cash back rewards just like a normal credit card. The exception being, that these cash-back rewards are larger than normal, unlimited, and are directly deposited into your account each month.

It is a necessity for the Zerocard to be, in reality, a credit card, because of the regulated fee structure of the industry. The second prong of Zero's approach is to offer a higher interest rate on the savings account (FDIC Insured) tied to the card than normal. Just how much that will be, has not yet been announced. It is also mentioned that it may raise your credit score, but that's really because a monthly bill exists, it just happens to be paid from your account automatically.

The Zerocard is offered at four different status levels, defined by annual spend. The steps above Quartz are rather steep for the common man, but they can be avoided for the next two years or so, by referring more people after you sign up for the waiting list. Signing up before the release also makes you a Graphite member automatically, with no spend requirements for the remaining calendar year after you receive your card, and the year directly after. The people you refer also automatically receive Graphite status. The magic number appears to be three to level up to Carbon.

The card will be all-metal, and is shown to be a Visa Infinite in the advertising copy. That weightiness will definitely increase your dopamine levels every time you use it. (Apparently the Sapphires do...)

They just received $2.5M in Venture Capital funding, so I hope that this card does really come out in early 2017 like they say. The introduction video was a bit of a letdown to be honest. The puppy ruins your house, and forces you to spend over a thousand dollars from Casper (I see that co-product placement peeps), and then you get a girlfriend as it predicts your net worth into the future. Skymoney. Watch out. 

Only time will tell if this truly comes to fruition, and if it is really worth the metal it's printed on. But until then, it can't really hurt to sign up for the waiting list using this link. If they deliver, it will be an awesome addition to your credit card arsenal, and if they don't all they have is one of your (hopefully) many email addresses.

Referral Link

Homepage

Opening Blog Post

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Credit Cards for Beginners

First article in the series here: Credit Card Primer

Building up your credit is important. As an absolute beginner with no credit history at all, your choices are limited. You won't get approved for most of the "elite" credit cards with decent welcome bonuses.  However, there are still several options available. To help you start building credit, I'll recommend two credit cards that are best for beginners.

With SSN: Discover it for Students

Discover it for college student is definitely the best choice to start with if you have a SSN. As long as you are a college student and have a Social Security Number (SSN), Discover will mostly accept your application regardless of your credit history. (However they'll reject you if you only have a SHORT history instead of NO history.)

Although Discover is considered a relatively small network in the US, the acceptance of Discover It is not bad. In fact, this card supports four networks at the same time: Discover, Unionpay (银联) - China, JCB - Japan, Diner's club, which makes it super convenient when traveling in Asia. (No Foreign Transaction Fee.)

Features:

• Double Cash Back: Double all cash back you’ve earned at the end of your first year, including the 5% bonus category, sign-up bonus, Discover Deals, refer bonus. New customers only.
• Earn $50 after first purchase within 3 months. (Must with referral code. The official application link has no sign-up bonus.)
•  Good Student Reward: Earn $20 each year when you get at least a 3.0 GPA, up to 5 years. 
• Earn 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter, 1% cash back on all other purchases.
• No credit history needed.
• No foreign transaction fee.
• No annual fee.

Application Link: If you decide to apply for Discover it, please use this link. It gives both of us a referral bonus ($100 for you with this link) and helps keep this blog going. 

Without SSN: BoA BankAmericard Travel Rewards Credit Card for Students

Your credit history comes with your name, DOB, and home address. Even if you don't have a SSN yet because you are an international student, there are still ways to start building credit history. Bank of America (BoA) is the best place to get started.

As a non-US citizen, you have to go to the branch to apply. You likely won't get the $200 welcome bonus. However, the point of one's first credit card is to start building a credit history. Therefore, the welcome bonus should not be your biggest worry. You can go back to the branch and ask for assistance, and they may grant you the bonus regardless.

Usually, you need a good relationship with BoA to get approved for this card. However, YMMV (Your Mileage May Vary). 

Features:

• Earn 1.5 points per $1 spent on all purchases. 
• No Foreign Transaction Fee. 
• No annual fee.

Application Link:

You have to go to the branch to apply if you are not a US citizen or permanent resident.

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Credit Card Primer

Credit cards, and credit in general often lie in a realm of mystery for many college students and young adults. It is sometimes feared because of the crisis of 2008, and its continuing aftershocks. In this post, I, and Zitong want to help explain how credit cards in particular can be used effectively, responsibly, and perhaps most importantly, (for us at least) to help you travel.

Credit Score

Each person who uses an American based credit card, takes out an American loan, applies for a loan, or in almost any way, borrows money has a credit score. This score shows borrowers your credit history, maturity of accounts, and myriad other factors. From this score and accompanying credit report, borrowers can evaluate the risk involved in lending you money. There are three main credit agencies that produce credit reports: Equifax, Experian, and TransUnion. The most widely used scoring formula is the FICO credit score, although many institutions have developed their own.

FICO scores range between 300 and 850. The factors that affect FICO credit scores are:

Source

Source

From the chart, it is easy to see that payment history is by far the most important factor, quickly followed by amounts owed. Length of credit history is a smaller, but still meaningful factor. Students should likely start trying to build an impeccable credit score now, so loans are easier to obtain in the future after college. One way to build a credit history is to simply maintain one credit card that is paid off every month. Over time, this will pay off handsomely.

Applying for Cards

You can apply for credit cards online, over the phone, and in-branch. Online is the easiest, and often yields a result in a few minutes. You need to enter your Social Security Number, annual income, monthly housing cost, and a few other basic pieces of information. 

If you are instantly approved, it will tell you, and your card will come in the mail within 7-10 business days. If you are denied or pending, there is still something that you can do. You can call the reconsideration line within the lending institution to see if there's something that you can do in order to still get the card. Always be as polite as possible with the representatives. Sometimes, they will truly go out of their way to help you if you're calm and respectful.

Although some aspects of the application are not verified, never lie on a credit application. If the institution finds that out, they will delete your account, confiscate all rewards, and penalize your credit history, at best. 

For Non-U.S. Person (neither U.S. Citizen nor Permanent Resident)

Even if you are not a US Citizen or Permanent Resident, you can still enjoy all the credit card benefits that others can. However, do keep a few things in mind when applying:

• Your credit history will stay with you for your whole life, even if you don’t have a Social Security Number (SSN). So mind your credit history carefully (if you still want to go back to the US in the future). 
• Although an SSN is not necessary, your options are limited without it. We recommend that you obtain an SSN as soon as possible. 
• As an international student with an F1 visa, the easiest way to get an SSN is working  an on-campus job. 
• As mentioned above, applying online is often the best option. However, as a non-U.S. Citizen, you can’t apply for cards online with certain banks (e.g. Bank of America). You must go to a branch and apply in-person. (In doing so, you may be denied the Welcome Bonus. Always remember to check with your banker about this before officially applying.) 

Credit Card Use

Credit cards are used mainly for the convenience and safety of not having to carry large amounts of cash. They can also be used to purchase items before you have the money to pay for them. Each purchase is a small short term loan that the bank expects you to pay off at the end of the statement cycle. While you can carry a balance over, the interest rates on credit cards are usually very high, notwithstanding the fact that a carried balance hurts your credit score. You should pay off your full balance whenever it is financially possible. 

A good rule of thumb is that you should never purchase something on a credit card unless you can pay it off immediately. To effectively use a card, it should be constantly treated as cash, just like a debit card.

Rewards

Many credit cards come with some kind of rewards system, be it cash-back, proprietary points systems, or airline miles. Ordinarily, these points add up to only a fringe benefit, based primarily on what you would normally spend on ordinary things as well as travel. Lucrative sign-up bonuses change the calculus. 

To acquire the bonus, you must spend an arbitrary minimum amount within a certain amount of time (~3 months). For lower level cards, it is usually around $1,500, and for higher level between $4,000 and $5,000. 

The rewards can be used in a variety of ways, the most lucrative of which, are travel-related. For more on different credit cards, and how to use the rewards, go here. 

Spend

That minimum amount required to receive the bonus is known as minimum spend. You might be saying to yourself, that's great and all, but I don't spend $4,000 in a year, let alone a month. The first thing to do is to shift as much spending as possible to your credit card. All manner of things can be charged including, rent, utility bills, eBay purchases, and sometimes college tuition. If you have a large purchase coming up, make sure and put that on the new card. Keeping close track of your spending makes it easier to maximize rewards and stay under budget. 

Other avenues do exist, though. There is something called manufactured spend (MS). This is where a card user buys items that have cash value, or can be redeemed for cash. This could include gift cards, Amazon account credit, and Venmo transfers. I neither condemn nor condone manufactured spending. If you choose to do it, be aware that there are consequences if the bank decides you have been abusing their system.

Conclusion

Credit cards are useful not only for their convenience, but also their ability to help build your credit score for the future. When used strategically they can reward you greatly with travel and other perks. That said, they also carry a great amount of risk when not used properly. Strict budgeting and self control must be exercised at all times. Spend only what you can afford to. Always try to avoid carrying a balance over, and if you ever do get into credit card debt, try to pay it off as quickly as possible because of its higher relative interest rate to other forms of debt.

Good luck, and many travels!

Read the next article in the series: Credit Cards for Beginners

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