How to Climb the Credit Card Ladder in 2024

How to Climb the Credit Card Ladder in 2024

💥 If you’re looking to protect your family from identity theft and credit fraud, my sponsor Aura makes it really simple. Their app uses AI to do all the hard work for you. Try 14 days for free!
Learn more on the Sapphire Preferred:

💥💥Click this link to get up to 15 free stocks from moomoo U.S when you make a qualified deposit + earn 5.1% on uninvested cash + an additional 3% APY Coupon for 3 months!! Terms & Conditions Apply:
💳 Learn more on the Chase Sapphire Preferred:
💳 My Credit Card Guide:
Credit Shifu Wallets:

“The content in this video is accurate as of the posting date. Some of the offers may no longer be available.”

Advertiser Disclosure: This site is part of an affiliate sales network and receives
compensation for sending traffic to partner sites, such as CreditCards.com. This
compensation may impact how and where links appear on this site. This site does not
include all financial companies or all available financial offers.


Hey credit Warriors welcome to the show And in this video I want to talk about How to climb the credit card ladder in 2024 it is a guide on how you can Navigate through the different tiers of Credit cards that exist in the US market And maybe one day even get an AMX black Card for yourself now since I made the First version of the credit card ladder Video on YouTube I think it was back in 2017 that one blew up by the way and got Over a million views I have updated it Every year with new information as the Us credit card industry changes numerous Other people have also done their own Versions of it too but now I want to Give you an update for 2024 since there Have been some quite big changes that Alter the traits of cards in some of the Tiers on the ladder especially in the Area of annual fees which have certainly Gone up since we first made a version of This video a few years ago it's all that Inflation remember the $7 eggs a few Years ago well now we have $1,000 credit Cards anyway let's get into the 2024 Version and this video is brought to You By Aura but more on that later okay so We have five tiers from low to high last Year I actually added in a tier 3.5 so There were six tiers I've taken that out This year and I'll tell you why when we Get to that stage also at the end of the Video I will give you what I think your

Setup should be in terms of how many Cards from each tier for someone who is Into travel cards cash back or someone Who's paying off debt but for now let's Start from the bottom t tier [Music] One so tier one is the home of Functional cards that are not glamorous And don't earn any rewards most of the Time they simply serve a purpose Normally either to help you build your Credit or to help you pay down debt they Typically don't have annual fees but There are a few exceptions so credit Builder cards come in two varieties Secured and unsecured secured means you Put down a security deposit for example $200 and you get a card with a $200 Limit limit so if you fail to pay it Back the bank can just take the money From the original $200 that they are Holding as a deposit but these cards Will help you build your credit as long As you pay them on time an example of a Secured card would be the Capital One Platinum secured and there's an Unsecured version of the same card Called the capital 1 Platinum you can See the secured one is for people who Are rebuilding credit after they've Trashed their credit score with mis Payments or bankruptcy and the regular Platinum is for Fair Credit most people Who have never built their credit score

But have also never damaged their credit Should be able to get the unsecured Platinum unless you have a very short History of living in the United States Then you may also need to go for a Secured card another pretty good secured Card for credit building or rebuilding Is the Open Sky Secured card this one Doesn't even check your credit when you Apply this one does have an annual fee Of $35 but that is very low compared to Annual fees that you will see later open Sky has added the advantage for new Immigrants to the United States that you Don't need a US checking account to Apply both Open Sky and Capital One as Well as a couple of others are Recommended by credit expert Anthony Davenport author of the book your score Who I've interviewed on the show before All right let's now look at cards that Help you get out of debt balance Transfer cards basically these are cards That when you have a big balance on a Certain credit card that you are paying Interest on you can transfer the balance Over to the balance transfer card card And pay no interest for a certain number Of months this means that you can focus On just paying the debt down rather than Wasting money on interest so one example Of a balance transfer card from a Mainstream bank is the Chase Slate Edge Which gives you 0% interest for 18

Months but it does charge you a balance Transfer fee to transfer that balance Over that fee is $5 or 3% of the balance If transferred within your first 60 days But that 3% goes up to 5% if you Transfer your balance after that this Card actually used to have no fee but Not anymore then if you want a longer Time of 0% the city Simplicity is one of The longest I know of 0% for 21 months 3 Months off being 2 years and it has a Similar balance transfer fee to the Chase one if you're looking for a card With no balance transfer fee at all I Don't believe that any major US Bank Currently has a card with no balance Transfer fee there are a few from Smaller Credit Unions for example the Wings Financial Credit Union Platinum Card it doesn't charge a transfer fee And it offers 0% for 12 months and There's that word again Platinum some of These cards just pick the most expensive Sounding metal even though they are just In tier one so anyway to recap tier one Cards are functional they build your Credit or get you out of debt they Typically don't have an annual fee with A few exceptions of very low annual fee Cards and they usually don't earn any Rewards like cash back or points if you Want to earn rewards you'll need to head Over to our next tier Tier

[Music] Two these are basic rewards cards with No annual fee and the rewards that they Earn are usually just cash back we have Cards like the Discover It cashback card Which actually can sometimes be obtained By people with no credit history so in That case you would skip tier one and go For the Discover It Card in tier 2 and Earn 5% cash back in categories that Change each quarter with a $1,500 quarterly spending limit for that C cash back rate we also have the Apple Credit card that has no annual fee and Earns 2% cash back when you use Apple Pay or 1% using the physical card and Has some 3% categories too so if you're An apple Fanboy then that would probably Be the card to go [Applause] For even though you can actually get 2% On everything without jumping through Hoops with other tier one cards like the City double cash or the Wells Fargo Active cach or the TD double up but I Understand you've joined a cult you have To have the Apple card because it's Apple there's so much funny stuff that We can roast Apple for with their credit Card like they actually put out a guide Saying that to protect your card don't Let it touch leather or denim like you Know leather only the substance that Most Wallets on the planet are made of

And you can't put it in the pocket of Your jeans either maybe you need to buy This for $99 okay that one was a joke I Found that on the internet but the thing About not touching leather or denim is Real they probably just want you to use It virtually in your Apple wallet which Isn't made of virtual Leather by the way All right now in tier 2 most cards earn Cash back but many cards are kind of Future proof in that their cash back can Be turned into points if you have Another higher tier card from the same Issuer so the Chase Freedom Flex or Freedom unlimited cards earn cash back But if you have the Chase Sapphire Preferred I'll put a link in the Description for that one by the way you Can transform that cash back into points That are now worth 1.25 cents per Point Instead of just one 1 cent per point When you book travel through Chase same With the city double cash 2% card or the City custom cash 5% rotating category Card if you have the City premiere you Can transfer that cash back over and it Becomes points and then you have way More Redemption options so to conclude Tier 2 these are cashback cards with no Annual fee there're sometimes 2% on Everything sometimes have 5% rotating Categories with a spending limit per Quarter or sometimes they just have a Few set spending categories that's like

The Credit Pros

3% the few exceptions to this are some Very basic hotel and Airline cards with No annual fee that earn hotel or Airline Points and the AMX everyday card that is The only no annual fee AMX card that Actually earns AMX points another Outlier in this is the built credit card The only card that lets you earn points On rent it does earn transferable points But it has no annual fee and no welcome Bonus so I still call it tier 2 and Speaking of Welcome bonuses it's not That no cards in tier 2 have bonuses Though in this tier we do start to see Some very small welcome bonuses like the MX everyday card for example that we Just looked at it's 10,000 points which Is like $100 to $200 in value and a Typical welcome bonus in this tier would Be something like spend $500 in 3 months Get $150 but many cards in the tier like We said don't even give a bonus if you Want to start getting larger bonuses you Need to head to our next tier but before We look at tier three if you are Watching this video I know that you take Building and maintaining your credit Score seriously so you can climb the Credit card ladder and apply for these Cards that we talk about which can Enable you to earn points and get free Travel thus you don't want scammers Getting your information opening Accounts in your name and trashing your

Credit score and that's why I have Partnered with aura the sponsor of Today's video they are an all-in-one Identity protection and credit Monitoring service they constantly reach Out to data Brokers on your behalf to Get your information off the internet For example there are 62 different People called Ben Hedges on the site True people search if you click in you Can see their full address phone number Even what their house looks like on Google Maps it's really creepy oh look Ben hedges in Illinois has a trampoline Anyway not one of those 62 people is me Because I have Aura and my data has been Removed it's the same with rooc calls I Used to not answer the phone when I saw The same area code as me and I've missed Important calls because of it but now Because of Aura I've noticed a decrease In Annoying rooc calls Aura actually Does like six things in one identity and Credit monitoring password manager Antivirus protection it's a VPN which Keeps your data safe online and there's Home title monitoring and like we've Said data broker removal and since you Get all these things together it's way Cheaper than if you signed up to all of Those Services individually you can Either let people continue to exploit And profit of your private information Or you can go to or.com Benes to start

The Credit Pros

Your 2-e free trial it's also Al Linked In the description Below tier Three all right so tier three is where We start to see some big welcome bonuses And it's also where we start to see a Lot of cards with transferable points But all these cards have annual fees now In the past they were basically all $95 You had the odd one that was $89 or Something but most were 95 that is not The case anymore and in last year's Video I actually made a tier 3.5 for Those ones that had slightly higher Annual fees but now I think this is just The way it is inflation so I'm going to Say that the annual fee for tier three Ranges from $95 to $250 however cards that have higher Annual fees generally do offer some kind Of credit to offset that annual fee like The AMX gold for example has $240 worth Of credits per year for dining that Almost completely offsets the annual fee If you use them in reality I use about Half that amount each year so I'm still Getting the card for around $100 or so In terms of sign up bonuses it's very Common to see a welcome bonus with a Value of $500 or more like this bonus on The city premier card with a $95 annual Fee for 60,000 points that's worth at Least $600 then for points like I said This is where we see transferable points

Come into play these are points Currencies that can be transferred to Airlines and hotels the main ones here In the US are Chase Ultimate Rewards City thank you points AMX membership Rewards points and capital 1 miles these Points are the most valuable since once You transfer them to miles with an Airline you get at least 2 cents per Point or more in value from them I Exchanged 60,000 chase points to United To book a $4,000 business class ticket For example so in tier three with Chase You have the sapphire preferred with City you have the City premiere with Capital One it's the Venture and with AMX it's actually three cards the Everyday preferred which is the higher Version of the everyday with an annual Fee the AMX green and the AMX gold then You also have tier free hotel and Airline cards like the Hilton honor Surpass with a $150 annual fee but $200 Worth of Hilton credits per year offsets The annual fee completely if you use Them now the Hilton card doesn't have This next feature but many Hotel cards In this tier do provide an anniversary Free night that offsets the cost of the Annual fee then for airline cards the Delta Gold and the Delta Platinum both Fit into tier three I would say there Are many Airline cards that have an Annual fee of between $95 and $250 50

And normally have some credits that Offset it so anyway to recap the themes Of this tier are welcome bonuses worth At least $500 if not more transferable Points or airline miles or hotel points Not so much cash back but there are a Few exceptions annual fees between $95 And 250 and credits or hotel free nights That give you back some or all of that Value and tier three is where a lot of People hang out I personally have Multiple cards in tier three they're Relatively inexpensive to keep because Of the annual fees around $95 typically And they give great bonuses and they Normally get great points earning rates Like the MX gold which is four points Per dollar on dining and US grocery Stores but if you're looking for a car That is less about earning points and More about the benefits it gives you Should progress to our next Tier tier Four all right now we're in the tier of What I like to call benefits cards these Are cards that each person normally only Needs one of in their collection because Their annual fees are so high and many Of the benefits will overlap with each Other here are examples of tier four Cards from the four major card issuers The Chase Sapphire reserve the capital 1 Venture X the MX platinum and the city Prestige which by the way isn't open to

New card members right now so typically Every card in tier 4 will provide Unlimited airport lounge access through Priority pass and may also have some Other Lounge network with mxit the Centurion lounge with Chase there are Now three Sapphire lounges in Boston Hong Kong and a new one just opened at New York's laguadia and with capital 1 They give you the Capital One Lounge of Which there are also currently three Open City why don't you have lounges I Guess your prestige card isn't even Accepting new applicants right now so You know maybe no point now all these Cards will give you access to Hotel Collections as well such as the AMX fine Hotels and resorts collection that's Probably the most famous booking through The fine hotels and resorts collection You can get load of extra benefits like Room upgrades free breakfast and a late Checkout I recently enjoyed all those Benefits at the Fairmont Orchid the best Hotel on the big island of Hawaii now All cards in this tier used to be $450 a Year but in recent years that has Increased and now the Chase Sapphire Reserve is 550 and the MX Platinum is 695 the only one that is somewhat Reasonable is the capital 1 Venture X at $395 with some credits to offset that so That's the one that I normally recommend For a first tier 4 card for someone

Who's relatively new to the game welcome Bonuses in this tier are normally close To or more than $11,000 in value and you Often find some Sky High bonuses through Targeted offers for example right now The MX Platinum has a targeted offer for 150,000 points which is at least $1,500 In value in addition to tier four cards With transferable points you also have Comparable cards for hotels and airlines That normally give high level benefits Associated with those brands for example The airline tier 4 cards will normally Give that Airlines lounge access like Admiral's Club in the case of the Advantage executive platinum card for American Airlines and guys tier four is As high as most people go but there is One tier Higher tier [Music] Five so this is the invitation only tier And in this tier we have famous cars Like the anex Centurion card we have the JP Morgan Reserve card that you have to Have a $10 million net worth to get Obviously all of these cards are metal Yeah let's do the drop test okay 1 2 3 oo reasonably good yeah that that had A clunk to it and we have the Insignia Cards which are these ridiculous ornate Credit cards made of gold mother of Pearl and diamonds the card alone costs Like

The Credit Pros

$250,000 not even talking about the Annual fee you have the Dubai first Royale card that targets Middle Eastern Princes and this year we actually have a Newcomer to tier five which is the Atlas Card and it fits in kind of at the Bottom of tier five since it's only got A $999 annual fee compare that to the MX Centurion at $5,000 but it is invite Only after all so I'm putting it in this Tier for now tier five has a huge Variety of products there aren't really Any rules for it other than it is invite Only and guys that is where I'm going to End tier five there's not much point in Talking about it since most people will Only ever make it to tier four a good Credit score will not get you a tier Five Card you need a high income too now For one fin final thing that I want to Share with you before I go and that is What tiers should you have cards from Well that depends on your strategy let's Look at a few different Five Card setups And we'll assume that you've either Skipped tier one or you've already built Your credit score with a tier one card And maybe that's still open but this is Going to be your five card set up for What you actually want to do so if You're into cashback you may want to Have four tier 2 cards and perhaps only One card in tier three cashback people Generally want to go super low or avoid

Annual fees altogether so they often get Tier 2 cards and they may only get one Tier three card that usually has some Great earning rate in one category like The AMX Blue Cash prefer that gives you 6% back on US supermarkets but has a $95 Annual fee if you're into travel and Collecting those points and also Benefits like lounge access a five card Setup would probably look like this one Tier two card three tier three cards and One tier four card and if you're a high Net worth individual you may want to Substitute a tier 4 card with a tier Five card and if you're paying off debt You would probably have a load of tier One balance transfer cards and then Maybe a couple of cards in tier 2 that Have no annual fee all right guys that Is the video for today I hope you've Enjoyed the 2024 update don't forget to Protect your credit score and identity Information with a two-e free trial of Aura with my link below as always please Subscribe to the channel if you're new And we'll see you next time bye-bye

The Credit Pros

You May Also Like

About the Author: James

2 Comments

  1. Масштабируемые пакеты для медицинских отходов
    пакеты для утилизации [url=https://paketydlyamedicinskihothodovms.ru/]https://paketydlyamedicinskihothodovms.ru/[/url].

Leave a Reply

Your email address will not be published. Required fields are marked *