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Short Summary
Main recommendation: Graham Stephan's list of the best credit cards for 2020 is the Chase Freedom Unlimited as the best overall card, with a separate best-in-category pick for six categories: cash back, dining, travel, signup bonus, 0% interest, and overall. The video's point is to maximize value on spending you would do anyway, not to carry debt or overspend to earn rewards.
Key Points
- The six promised cards, one per category: Citi Double Cash (cash back), Chase Sapphire Reserve (travel), American Express Gold (dining), Chase Sapphire Preferred (signup bonus), Capital One Quicksilver (0% interest), and Chase Freedom Unlimited (best overall).
- Citi Double Cash gives 2% cash back on everything with no annual fee: 1% on purchases and 1% when the balance is paid off, with no rotating categories or caps.
- Chase Sapphire Reserve costs $550 per year and offers a 50,000-point signup bonus (worth $750) after $4,000 spent in three months, a $300 annual travel credit, and other perks.
- American Express Gold costs $250 per year, offers 4x points on restaurants and supermarkets, and includes a $120 dining credit.
- Chase Sapphire Preferred costs $95 per year and offers 60,000 points after $4,000 spent in three months, plus 2x points on travel and dining.
- Capital One Quicksilver has no annual fee, 0% interest for 15 months on purchases and balance transfers, 1.5% cash back, and a $150 bonus after $500 spent in three months. US Bank Visa Platinum offers 20 months of 0% interest with no annual fee but few other perks.
Details Worth Noting
- Concrete instructions:
- Only apply for the Chase Sapphire Reserve or Preferred if you can naturally spend the required $4,000 on the card within the first three months; otherwise, hold off.
- To maximize the Chase Sapphire Reserve, use the $300 travel credit on travel-related purchases, use the $120 DoorDash credit, activate Lyft Pink, and use the 1.5-cent-per-point pay-yourself-back redemption.
- For American Express Gold, use the $120 dining credit (about $10 per month) at GrubHub, Seamless, The Cheesecake Factory, Ruth's Chris, boxed, and participating Shake Shack locations, and redeem points for travel rather than cash back or gift cards.
- Check your credit card offers in incognito mode, since American Express signup offers can vary by link and user.
- Avoid carrying a balance on credit cards when possible, but if necessary, use a 0% interest card temporarily until it can be paid in full.
- The speaker says the Chase Sapphire Reserve's annual fee can be offset: in his view, adding up the signup bonus, travel credit, DoorDash credit, Lyft Pink, and Priority Pass value totals at least $1,630 in the first year, leaving about $1,080 in value for the card holder.
- Credit utilization (the share of available credit used) affects credit score; a lower percentage is better.
- Chase Freedom Unlimited has a foreign transaction fee when used overseas and does not offer 0% interest on balance transfers, unlike Capital One Quicksilver which has no foreign transaction fee mentioned.
Bottom Line
The best card depends on your spending habits: Citi Double Cash for simple cash back, Chase Sapphire Reserve for heavy travelers, and Chase Freedom Unlimited for the best all-around choice, as long as you pay your balance in full.
