Getting began with bank card rewards might be extremely overwhelming. Must you begin with money again or factors and miles? Which card household do you have to select first? Or, do you have to attempt playing cards from completely different households? Will the annual payment on playing cards be price it?
When freshmen ask for assist constructing a card portfolio, we at all times advocate taking a look at card applications that may scale — that means playing cards that may be paired with others later to construct a complete card technique with out sacrificing the outdated card to the sock drawer.
You may discover that transferable factors are extremely priceless for avid and aspiring vacationers as a result of rewards might be redeemed throughout all kinds of airline and resort companions. However these journey bank cards usually have stricter approval necessities, so they are not at all times an choice as a primary rewards bank card. The excellent news is that some issuers provide sure households of bank cards that permit you to begin with a no-annual-fee bank card that may pair with a higher-tier card in a while for max worth.
The straightforwardness of Chase Final Rewards — together with Chase’s 5/24 rule — make this program place to start out for factors and miles newbies. And when selecting bank cards to earn Final Rewards, the Chase Freedom Limitless® and the Chase Sapphire Most well-liked® Card make a robust duo.
Learn on to learn the way these two playing cards can jumpstart your award journey.
Associated: How a lot are Chase Final Rewards factors price?
Why pair Chase Sapphire Most well-liked with Chase Freedom Limitless?
We’ll break down the total advantages of every card beneath, however here is a fast rationalization of why you will wish to begin with these two particularly. The highest cause is that Chase limits the variety of bank cards for which you’ll efficiently apply. That is because of the issuer’s 5/24 rule.
Briefly, should you’ve opened 5 or extra private playing cards throughout all banks up to now 24 months, it is unlikely you will be permitted for many playing cards in Chase’s portfolio, together with the Freedom Limitless and the Sapphire Most well-liked.
Should you’re beginning out, it is best to cowl a very powerful bases first. If you have already got a strong credit score rating, you will doubtless wish to apply for the Chase Sapphire Most well-liked first as a result of it earns these priceless transferable factors. However if you’re newer to the world of rewards bank cards, the Chase Freedom Limitless can be an important place to begin to earn money again.
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The very best half? The Freedom award factors can later be transferred to the Sapphire Most well-liked once you apply for it down the road.
Associated: What credit score rating do you want for the Chase Sapphire Most well-liked Card?
Chase Sapphire Most well-liked highlights
Welcome bonus for the Chase Sapphire Most well-liked: Earn 60,000 Final Rewards factors after you spend $4,000 on purchases within the first three months of account opening.
Incomes charges: Earn 5 factors per greenback spent on journey booked via Chase Journey℠, 3 factors per greenback spent on eating (together with eligible supply providers and takeout) in addition to choose streaming providers and on-line groceries (excludes Goal, Walmart and wholesale golf equipment), 2 factors per greenback spent on all different journey and 1 level per greenback spent in every single place else.
Perks: The Sapphire Most well-liked comes with no overseas transaction charges, and cardholders can get pleasure from perks like a ten% factors bonus on their cardmember anniversary and a $50 annual resort credit score for reservations made via Chase Journey. The cardboard additionally contains quite a few journey protections like major auto rental insurance coverage, baggage delay insurance coverage, journey delay reimbursement, journey cancellation and interruption insurance coverage, prolonged guarantee safety and buy safety.
Annual payment: $95
Causes to get it: TPG’s December 2024 valuations place this welcome bonus at $1,230, based mostly on maximizing the factors with resort and airline switch companions.
The beauty of this card is that all kinds of things fall inside the journey class — from airline purchases, taxis and tolls to parking tons and journey companies. So, even when your day-to-day journey is restricted to transportation, you’ll be able to rack up Final Rewards factors rapidly. You may additionally get wonderful journey protections on these purchases.
As for utilizing these factors, you’ve gotten a number of journey companions to select from. You may as well redeem Final Rewards factors straight for a number of eligible purchases via the Chase Journey portal at a charge of 1.25 cents apiece.
Associated: After 15 years, why the Chase Sapphire Most well-liked ought to nonetheless be your first rewards card
Chase Freedom Limitless highlights
Welcome bonus for the Chase Freedom Limitless: Earn a further 1.5% money again on every thing you purchase (on as much as $20,000 spent within the first yr) — price as much as $300 in money again.
Incomes charges: Earn 5% money again on journey bought via Chase Journey, 3% money again on eating, 3% money again at drugstores, and 1.5% money again on all different purchases.
Annual payment: $0
Causes to get it: This card affords arguably higher on a regular basis incomes classes than the Sapphire Most well-liked. What actually makes the Freedom Limitless worthy of a slot in your pockets is that you probably have a full-fledged Chase Final Rewards-earning card (such because the Chase Sapphire Most well-liked, the Chase Sapphire Reserve® or the Ink Enterprise Most well-liked® Credit score Card), you’ll be able to redeem your money again as Final Rewards factors.
And even when you do not have a type of playing cards proper now, you’ll be able to at all times apply for one later and then mix your factors into the Final Rewards account of the extra premium card.
TPG’s December 2024 valuations peg the worth of Chase Final Rewards factors at 2.05 cents every. Which means the 1.5% money again you will earn on nonbonus purchases turns into 1.5 factors per greenback spent (for a return of over 3%).
If money again is finally what you are after, contemplate a number of the different greatest cash-back bank cards, such because the Citi Double Money® Card (see charges and charges) that offers you a greater return on on a regular basis purchases. With the Citi Double Money Card, you will get 2% money again (1% once you purchase and one other 1% as you pay down your steadiness). You may as well convert the money again earned on the Citi card to Citi ThankYou Rewards factors through a linked ThankYou account.
Associated: Why the Chase Freedom Limitless ought to be the primary card in each pupil’s pockets
Utilizing the playing cards collectively
As talked about above, the rewards earned by the Freedom Limitless (and its sibling, the no-annual-fee Chase Freedom Flex®) turn into way more priceless once you additionally maintain a higher-end Chase card. It’s because you’ll be able to solely convert your money again into transferable factors with a card that earns Final Rewards factors outright.
So, to redeem rewards earned with the Freedom playing cards as factors that may be transferred to companions, it’s good to maintain a higher-tier card just like the Chase Sapphire Most well-liked. Another choice is the premium Chase Sapphire Reserve for individuals who assume the $550 annual payment is definitely worth the card’s higher earnings, extra advantages and $300 annual journey credit score.
The Ink Enterprise Most well-liked Credit score Card can be an important various — or addition — for small-business homeowners.
Even should you do not plan on transferring factors to journey companions equivalent to United Airways, Hyatt, Southwest Airways and British Airways, these playing cards assure 25% to 50% in additional worth when redeeming factors via the Chase Journey portal for journey at a set worth. In different phrases, somewhat than redeem every level for 1 cent every with only a Freedom card, you’ll redeem them at a charge of 1.25 or 1.5 cents apiece by additionally having the Sapphire Most well-liked or Sapphire Reserve, respectively.
Should you merely need money again and by no means plan on pairing your playing cards, it is best to try different cash-back bank cards with greater returns. However these seeking to construct a long-term card technique can make the most of the Chase Freedom Limitless pairing capabilities with a card that unlocks Final Rewards redemptions.
Utilizing these two playing cards strategically places you in place to earn and redeem journey rewards for max worth.
For starters, all journey purchases not made via the Chase Journey portal (like Uber rides and Airbnb stays) ought to go on the Chase Sapphire Most well-liked to earn bonus factors and get wonderful journey protections. You must also use the Sapphire Most well-liked for eating, choose streaming providers and on-line grocery purchases to earn 3 factors per greenback spent. And, for the reason that card waives overseas transaction charges, you will wish to use it for all purchases outdoors the U.S.
Then, you will use the Freedom Limitless for drugstores and all different on a regular basis purchases.
When it is time to redeem your hard-earned factors, see this information to getting the utmost worth out of your awards and this information for locating candy spots within the Final Rewards program.
Associated: Chase Sapphire Most well-liked vs. Sapphire Reserve: Must you go mid-tier or premium?
Backside line
Should you’re beginning to earn journey rewards with bank cards, these two playing cards ought to be your high precedence relating to purposes — however ensure you take note of the issuer’s 5/24 rule to optimize your probabilities for approval.
For added info, try our Chase Freedom Limitless evaluation and Chase Sapphire Most well-liked evaluation.
Apply right here: Chase Freedom Limitless
Apply right here: Chase Sapphire Most well-liked
