How to Climb the credit card tier list
If you've ever found yourself overwhelmed, by the multitude of credit card options and unsure of where to begin then this blog post is perfect for you. In a few minutes of reading this blog post, will you learn about my years of experience and mistakes in a FastTrack guide that follows my personalized six tier credit card strategy. This strategy has allowed me to accumulate millions of points acquire over 20 credit cards and travel the world for free. Consider this your step, by step guide that will not only tell you which cards to pursue but also how to maximize every benefit they offer. Additionally I'll explain the tiers in such a manner that you'll gain an understanding of how the entire world of credit cards functions.
Basic overview
Alright lets begin by discussing the tiers of credit cards. There are six tiers to consider; baby cards, beginner cards, midgame cards, business cards, premium cards and elite cards.
The baby tier is designed for individuals, with credit. If you're new to the credit card scene or have had some experiences with credit in the past this is where you'll likely start. However in some cases even newcomers to the credit card world may begin at tier 2 if they haven't had any issues, with these specific credit card providers. The beginner tier of credit cards is what I would also consider as the tier because all these cards have no fees. That means there's an upside, for your midgame cards if you stay at a hotel even once a year. This category still makes sense for people in tier three. In tier three you'll start encountering some cards with fees. That's where the benefits really start to evolve and emerge.
Read: What is Good Credit And How To Get The Best Interest Rates
The fourth tier is the business tier. These credit cards may be a bit more difficult to obtain. They are definitely worthwhile because they allow you to maximize your point earnings on a different level.
Up we have the premium tier cards. These are luxury credit cards made of metal that offer you the possible benefits.
Lastly we have the cards in our tier. These are exclusive baller level cards that most likely you will never come across in your lifetime. Only a select few individuals, in the world possess these cards.
With all that being said lets go through each tier and discuss which specific cards fit within those tiers. We'll also assess how they stack up against each other within this tier system.
Baby tier cards
When it comes to your baby cards there are three products secured cards, credit builder cards and student cards. Typically a secured card is offered when you've had some issues, with credit card companies making them hesitant to lend you money. It could also be because this is your credit card and banks tend to be more cautious during this stage. However speaking from my experience I was able to obtain a beginner tier 2 credit card without having to go through processes.
In case you're unfamiliar with secured credit cards let me simplify it for you. Think of it as a credit card but with an added feature – these are designed to assist you in building your credit over time and eventually transitioning into a credit card. An unsecured credit card functions like any credit card we know today.
For secured credit cards issuers often require a deposit ranging from $100 to $500 which then becomes your credit limit. Banks do this because the deposit you make serves as collateral. This means that if by any chance you fail to pay off your balance on time or default, on the card they will keep the amount that was initially deposited.
These credit cards are pretty straightforward. Just make sure to pay off your balance in full every month. Over time you'll build trust with your bank. Improve your credit score, which can lead to getting a card.
Now lets talk about the card called a Credit Builder card. These cards have been gaining popularity lately. For example Chase recently introduced a product called The Chase Freedom Rise. Think of it like moving from the varsity team to varsity, in sports.
With a Credit Builder card of putting down a security deposit that's tied to the card you put money into a connected checking account at the bank. This way you increase your chances of getting approved for the card. It is designed for people who don't have credit but are still relatively new to credit cards.
Now lets talk about the type of credit card which is specifically designed for students. These student credit cards are great, for building your credit history in a straightforward manner. They usually come with spending limits. They offer some attractive perks as well. For instance if you maintain grades you can let the bank know. They might give you a cashback reward of $20 or $25. Student credit cards remain quite popular because most individuals get their credit card while still in college. Therefore many banks actively promote these types of cards to college students.
Starter cards
So lets move forward to the level. We have what we call tier two credit cards. These cards bring you a step further into the world of no fee cards, with welcome bonus offers. They're quite easy to use and get approved for long as your credit score's decent. Many different issuers offer these tier two credit cards to bring people into their ecosystem.
Now some people might assume that tier two starter cards aren't that great because they're easier to obtain. That's completely false! There are individuals who have obtained 20, 30 or even 40+ credit cards and most of them are tier two starters because they enjoy the benefits of cashback and no annual fees.
Among the cards, on this list are the Capital One Saver One card, the Freedom Flex card and even the Apple credit card if used correctly. However I must mention that the top tier choices here would be Bank of America Cash Rewards Card, Chase Freedom Flex and Capital One Savor One card. They make for a setup.
Read: How to Start Having Credit In The United States
Mid-Tier Cards
As you progress to tier three credit cards things start to get more interesting. This is when the annual fee begins to increase. The annual fee is the amount you have to pay each year for holding these cards. In return they offer credits and benefits that you need to consider in order to break even. Tier three cards typically offer earning opportunities, in categories such as travel, dining, groceries and more. You may even enjoy perks like a hotel night with cards like the World of HA or Marriott Bonvoy card. These cards are particularly valuable for individuals who are climbing their way up the ranks.
One great thing about tier 3 cards is that they often come with welcome bonus offers. For example if you spend an amount you can earn 60,000 points which can be equivalent to $600 in cash value. So in the year if you take advantage of the welcome bonus offer on any of these cards your return on investment (ROI) will be positive. So what this means is that even if I have to pay $250, per year for this card the welcome bonus offer of $600, with the gold card makes it a net positive by an amount. The advantage of tier cards is that you don't have to keep them. You can always downgrade your cards cancel them after some time or switch to options within the category.
Business Cards
So you have your tier four credit cards now. These are meant to be your business credit cards. They basically offer features compared to your tier cards. Personally I believe business credit cards are excellent. I understand that some people may feel intimidated by them because they might seem complex or unfamiliar.
It's totally fine if I don't have a business or make six figures with Shopify Drop Shipping Store, etc. Many people overlook the fact that simply walking dogs or working as a proprietorship, an Uber Eats driver or an Instacart driver qualifies you as a freelancer, which falls under the umbrella of being a business owner. Business credit cards are great. They usually come with minimum spend requirements, for welcome bonus offers. Of spending $3,000 in 6 months to enjoy the benefits you might have to spend anywhere from 5 to 10 times that amount or even $15,500 to qualify for some of these card products. However it's worth noting that businesses generally spend a lot of money so most people don't have trouble meeting these requirements. You get a higher welcome bonus offer in return. Also keep in mind that some business credit cards have no fee. Annual fees aren't always fixed either. Now two of the products available are the Ink Business Cash and Ink Business Unlimited cards. If you're interested, in learning more about how to get approved for a business credit card I can provide details.
Premium cards
Moving forward we have the tier five premium cards, which are typically considered the top notch options. These cards do come with a substantial annual fee. For instance take a look at the Capital One Venture X Card with a fee of $3.95. It can go all the way up to a fee of $695 for the AMEX Platinum card. Now let me explain something about these credit cards; if you happen to travel or have someone you refer to, as "player two " they can be quite advantageous.
So if you and your partner whether it is your spouse or husband or wife can work together to explore welcome bonus offers or maximize the benefits, across credit cards. As someone who owns cards like the Chase Sapphire Reserve, the Amex Platinum and even the Amex Business Platinum in my wallet I can tell you that these cards can offer incredible benefits for travelers. However if you're more conservative or don't enjoy traveling I don't think you'll find value in these high tier credit cards. Even if you take one trip per year and want to make it as luxurious, as possible these cards can still provide exceptional value. Keep in mind that although these premium tier credit cards are primarily focused on travel perks they can still be worth it even if you spend most of your time at home. Sure it's important to note that traveling can greatly facilitate the redemption of your points. However at this stage I would highly recommend maximizing the benefits to avoid accumulating fees, from the airline.
Elite cards
At this stage we've reached the tier, known as the cards. Within this category there are two options. The first one is the AMX Interon card, which carries a fee of $5,000 and an initiation fee of $10,000. The second option is the JP Morgan card, with a $550 fee. However it's important to note that being invited for any of these cards requires meeting spending requirements set by MX Centurion card. Even if you meet those requirements there's still no guarantee that you'll be invited to hold the MX Centurion card itself. To be eligible, for a JP Morgan Reserve card you need to have $10 million in assets managed by JP Morgan Chase. However even meeting this requirement doesn't guarantee an invitation. These cards are quite prestigious. Offer benefits, such as access, to a concierge service that can assist with various requests. We have covered stories related to this topic in our videos. For example there was an instance where someone needed tickets to a Justin Bieber concert that was sold out and the Centurion representative managed to secure those tickets. Another story involved someone planning a proposal and needing flowers delivered by helicopter, which American Express arranged for them. While some of these anecdotes may sound unbelievable or exaggerated they make you wonder about the privileges associated with owning such a card.
How to climb the Tier
Here are a few important things to consider about all the mentioned cards. Keep in mind that the level of difficulty, in obtaining these cards does not necessarily increase as the quality improves. The only cards that can be challenging to acquire are the Elite cards. However I must admit that these particular cards may not make sense for a person especially considering the high annual fees such as $5,000 for the Centurion card and an initiation fee of $10,000. These elite cards are more of a status symbol than options. Alternatively you could explore tier five cards like the Platinum Card, which offers benefits to the Centurion card. Another excellent option is the Chase Sapphire Reserve, which competes favorably with the JP Morgan Reserve card.
It's crucial to note that each person's experience in obtaining a card can vary significantly. While I have organized them into tiers based on value it's important to acknowledge that individuals may have opinions on this matter. For example some might find it easier to obtain an AMEX platinum card compared to a Bank of America card; however others may experience the reverse situation. Your ability to secure cards will depend on factors such, as your credit score. Where you currently stand in your financial journey. However a common strategy to achieve success and accumulate points is to progress through the tiers and ranks. You have the flexibility to deviate from an order. For instance if you have 10 family vacations planned you can start by obtaining the card with perks and benefits such, as the reserve card. Then gradually move on to exploring options among the no fee cards. It's important to note that there is no predefined sequence, for this process.
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