Recently, a friend of mine asked for some advice on signing up for a new rewards card.
“I’m about to drop ~$4,200 on classes, so I’m probably going to apply for a new rewards card,” she said. “Next year’s international travel will include at least a trip to Berlin and I prefer to stay in Airbnbs vs. hotels. Any suggestions?”
After inquiring, I learned she only had two credit cards total – and that her credit score was well over 800.
That was great, I thought, because being under 5/24 would help her qualify for the top Chase travel credit cards if that’s what she wanted.
Which Credit Cards Are Best for 4K in College Bills?
And that’s exactly what I suggested. With $4,000 to spend, good credit, and fewer than 5 credit cards within the last 24 months, I suggested she get any one of the top Chase cards before she moved onto other options. But since she had travel on the agenda, I suggested one of the top travel cards instead of Chase cash back cards like the Chase Freedom or Chase Freedom Unlimited.
With the Chase Sapphire Reserve, I told her, she would earn 100,000 points after she spent $4,000 on her card within the first three months. The notable downside here was that she would need to pay a $450 annual fee that wasn’t waived. However, we all know she would get a $300 annual travel credit and other benefits like 3x points on dining and travel, 50% more value when booking through the Chase portal, Priority Pass lounge access, and more.
The 100,000 points were worth $1,500 in travel if booked through the Chase travel portal, I explained. Further, Chase points are the most flexible out there since they let you transfer to popular programs like Hyatt, Marriott, Southwest Airlines, United Mileage Plus Explorer, and Ritz Carlton at a 1:1 ratio.
Since $450 is a huge annual fee for someone with college bills, I also suggested the Chase Sapphire Preferred card for obvious reasons. While this card only comes with 50,000 points after you spend $4,000 within the first three months, it has a $95 annual fee that is waived the first year. The benefits aren’t as robust, and you only get 2x points on travel and dining. Still, this card is obviously a stellar deal and one of my favorites. And it’s probably the best option for anyone who really doesn’t want to pay $450 for the Chase Sapphire Reserve.
Final Thoughts
Spending $4,000 on college courses is more than an investment in your future; it can be rewarding if you take the time to apply for an awesome new rewards card first. With the Chase Sapphire Preferred card, for example, just $4,000 in spending can lead to an instant $500 in cash back or more than $625 in travel – and all without paying an annual fee the first year.
And since Chase cards are becoming harder to get the more involved you become in this hobby, it’s smart to get your Chase signups out of the way first.
Which credit card would you get first if you were my friend? What was your first travel rewards credit card?