00:00Most people think you need 20 or 30 credit cards just to rack up meaningful rewards.
00:05But the truth is you only need 5 really good cards to cover nearly every spending category
00:10and maximize either cashback or travel points.
00:14In this video, I'm breaking down the 5 best credit cards you should carry in 25.
00:19Whether you're all about cashback or more focused on travel perks,
00:23this list has a setup that works for you.
00:25And I'll even include a few bonus picks in case you want to take your card strategy even further.
00:31Let's start with the foundation card,
00:34the one you'll use when none of your other cards offer a better reward rate.
00:38For cashback users, your go-to is the Citi Double Cash.
00:42It has no annual fee and it earns 1% back when you make a purchase,
00:46then another 1% when you pay it off.
00:49That gives you a clean, no-hassle 2% back on every single purchase.
00:53There's also a solid welcome bonus to hunt back after you spend $1,500 in the first 6 months.
01:00This is a perfect option if you want something simple
01:03and don't want to worry about activating categories or tracking spending.
01:08For travel rewards, your best foundation card is the Capital One Venture X.
01:12It has a $390 file or annual fee, but that fee is offset easily.
01:17You get a $300 or annual travel credit when booking through Capital One Travel
01:21and 10,000 miles every year on your card anniversary.
01:25That's a minimum of $400 in value every year, which already covers the fee.
01:30The welcome bonus gives you $75,000 miles after spending $4,000 in the first 3 months.
01:36At a base value, that's $750.
01:38But if you transfer those miles to travel partners, you can easily get Shuntoo 200s or more in value.
01:46You also earn 2x miles on everything, 5x on flights, and 10x on hotels and car rentals
01:52when booked through Capital One Travel.
01:54And don't forget the airport lounge access.
01:57Both Priority Pass and Capital One lounges are included.
01:59If you don't want to pay the $395 annual fee, the regular Capital One Venture card is a decent alternative.
02:07It has a $95 annual fee, earns 2x miles on everything, and still has transfer partners.
02:13But for the extra perks, the Venture X is a better long-term value.
02:18Now let's talk about your rotating category card.
02:21The one that gives you super high rewards on specific categories each quarter.
02:26For cashback, the Discover It.
02:30A cashback is a must-have.
02:32It has no annual fee and earns 5% cashback on categories that rotate every quarter,
02:38like restaurants, grocery stores, gas stations, streaming services, and more.
02:44You can earn 5% back on up to $1,500 in spending per quarter in these categories.
02:50And Discover matches all cashback you earn in your first year.
02:53That means you're effectively earning 10 back-end bonus categories your first year as a cardholder.
02:59The only catch is that you have to activate the 5% bonus categories every quarter.
03:05But that takes just a few seconds.
03:07One thing to note, Capital One is in the process of acquiring Discover.
03:11That might mean new benefits, new cards, or changes to existing products.
03:16We'll have to wait and see what happens after the deal closes.
03:19Now, for travel users, the Chase Freedom Flex works similarly to Discover It.
03:24But instead of cashback, you earn Chase Ultimate Rewards points.
03:29You get 5x points on rotating quarterly categories.
03:32And those points become even more valuable when you pair them with a Chase Sapphire card.
03:37You also earn 3x on dining and drugstores and 1x on everything else.
03:42The sign-up bonus is usually 20,000 points, worth at least $200 after spending $500 in the first three months.
03:50So if you're using the Freedom Flex as part of a travel setup, you're getting extremely high value out of those 5x categories,
03:58especially when paired with the next card on our list.
04:01Now, let's talk about the card that unlocks your points for travel.
04:05If you're using the Chase Freedom Flex, you need either the Chase Sapphire Preferred or the Chase Sapphire Reserve to transfer those points to travel partners
04:14or redeem them for extra value through Chase's travel portal.
04:18The Sapphire Preferred has a $95 annual fee and comes with a $50 hotel credit when booking through Chase.
04:26That effectively brings your costs down to 40s per year.
04:29You earn 2x on travel and 3x on dining, and the welcome bonus is usually 60,000 points after spending $4,000 in the first three months.
04:41The Sapphire Reserve is the premium version.
04:44It has a $550 annual fee, but you get a $300 travel credit that's automatically applied to flights, hotels, and more.
04:53That brings your effective gate down to $250.
04:55It earns 3x on travel and dining, and it includes airport lounge access through Priority Pass and access to Chase's own Sapphire lounges.
05:05If you value comfort, travel perks, and better redemption rates, the reserve is worth it.
05:11If you want great value at a lower cost, the Preferred is a better choice.
05:15Next, let's look at your everyday spending card.
05:18This is the one you'll use for groceries, gas, streaming, and other day-to-day expenses.
05:23For cashback, it's hard to beat the blue cash Preferred from American Express.
05:29You get 6% cashback at U.S. supermarkets on up to $6,000 per year, 6% on streaming services, 3% on gas and transit, and 1% on everything else.
05:41The $95 annual fee is often waived in the first year, and you'll typically get a $250 welcome bonus after spending $3,000 in the first six months.
05:50If you're spending regularly on groceries and streaming, this card basically pays for itself and then some.
05:57For travel rewards, the best everyday card is the American Express Gold Card.
06:03It earns 4x points at U.S. supermarkets and restaurants, 3x on flights, and 1x on everything else.
06:10The annual fee is $250, but you get up to $120 in annual dining credits and $120 in Uber credits, which can bring the effective cost down significantly.
06:21If you eat out a lot and cook at home, this card gives you huge value.
06:26Plus, Amex points can be transferred to a long list of travel partners for premium redemptions.
06:31Now, I want to quickly go over a few bonus picks.
06:35These are optional, but they can help you squeeze even more value out of your setup.
06:40The Wells Fargo Active Cash is a simple 2% cashback card with no annual fee.
06:46It's a great alternative to the Citi Double Cash if you want a backup or want to diversify your card issuers.
06:52If you run a business or have a side hustle, the Chase Inc. Business Unlimited earns 1.5% cashback or 1.5x Ultimate Rewards points with no annual fee.
07:05It's a great way to stack points quickly.
07:08And for renters, the built MasterCard lets you earn points on rent payments with no fee.
07:13You also get 3x on dining and 2x on travel.
07:17And the points can be transferred to major travel partners like Hyatt, American Airlines, and more.
07:23If you found this helpful, hit that like button and subscribe for more personal finance tips, credit card reviews, and money-saving strategies.
07:31And let me know in the comments.
07:33Are you team cashback or team travel?
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