How to Climb the CREDIT CARD LADDER in 2021…

105.113 visualizações19 de mai. de 2021

hey i couldn’t afford a car so i bought this boat with my capital one platinum to being a real baller with your amex [Music] platinum wow is that a max planet oh yes it is wait why are they both called platinum anyway in this video we are going to give you an updated list of the five credit card tiers for 2021 then we’re going to go through how you should navigate up that tier list this year and we’re also going to give you one very important thing to watch out for to make sure you don’t get screwed in the credit card game this year so do stick around for that and hopefully you’ll be able to climb all the way to the top of the tier list seven million never leave the cave without it that one’s invitation only you probably can’t get it anyway let’s look at the five tiers starting with tier one now in tier one we have credit builder cards like the capital one platinum that we mentioned secured cards those are cards where you give a few hundred dollars to the bank and they basically lend you your own money each month and you pay them back so it’s no risk for them and it helps build your credit and then we also have fee harvester cards and these are cars that specifically target people with low credit scores to sell them credit cards that you know have high interest rates and have a lot of fees okay examples of those banks would be credit one first premier bank so just don’t randomly apply for any credit card that you get through junk mail okay read blogs watch this channel learn which credit cards are the best ones to start with okay capital one is really a surefire bet so in this category really you should only be applying for credit builder cards okay and secured cards if you can’t get a regular credit bill of cards now cards in this tier generally have no annual fee and they do not earn any kind of rewards okay so they’re just for building your credit and you’re gonna want to move up to tier two as soon as possible so tier two now tier two is basic rewards cards okay normally they own cashback that’s the most common type of reward but there are some others that earn other types of points as well there are also rotating quarterly category cards in this tier the most famous of which are the chase freedom flex and also the discover it card they earn 5 cashback in different categories that change each quarter on up to 1 500 worth of spending then you also have unlimited cash back cards and probably one of the most popular is the city double cash which earns 2 cashback on everything the apple credit card and also the new x1 credit card would also go in tier 2. this tier is where we start seeing sign up bonuses and they can range from about 100 to about 200 worth of cashback or if the card earns some kind of points the points currency that it earns but it’s more rare that they earn points normally cards in this tier earn cashback and they have no annual fee so the main two criteria for tier two are the card earns some kind of rewards and it has no annual fee all right let’s move on to tier three tier three travel rewards cards now you’re really talking now with the rewards okay this is where you kind of join the big boys league in tier three okay you have to normally have a credit score of at least 700 to get approved for these cards so it’s not something you can get straight away it’s something to aspire to they normally have big sign up bonuses between 50 and 100 000 points okay so normally that’s between 500 and a thousand dollars in value for spending a few thousand dollars in your first three months or your first six months of carb membership there are three types of points that you can earn from the cards in this tier you got transferable points you got hotel points and you’ve got airline points transferable points are the most versatile points like chase you ur points city thank you points and amex points because you can transfer them to a variety of different airlines okay whereas with earning hotel points you’re just stuck with that one hotel chain or airlines you’re just stuck with that one airline we also have hotel cards in this category that give you a hotel free night on your anniversary every year and this will normally outweigh the price of the annual fee so we call these cards sock drawer cards because you can just leave them in a sock drawer and you make money just by having them just through that three night now annual fees in this tier range from about 100 to about 250 um in the past the average annual fee was about 95 for tier 3 and still probably the most cards in this tier do have a 95 annual fee but over the years the amount of cards that are going for that full 250 annual fee is getting more and more previously it was just the alex gold but now just this year another card has sprang up with a 250 annual fee okay really pushing the boat now obviously they offer more benefits and we’ll talk about that card later in the video but yeah annual fees are rising tier four now these are premium travel credit cards guys and normally they’re made of some exciting material what is that carbon fiber graphite well normally it’s metal okay but anyway that’s not really the point that’s just the construction of the card um cards in this tier offer benefits such as airport lounge access is normally standard uh they’ll offer credits for things like maybe an uber credit or something like that you get the feeling of status by just having them okay you can impress all the ladies with your amex platinum or your chase sapphire reserve and they do earn points but normally the points earning actually may not be as lucrative in this tier um as in tier three okay if you’re looking to earn points um many of the cards in tier three will do that well enough now annual fees for tier four cards range from about 450 to about 550 us dollars and like with tier three these annual fees have been rising in the past year or two okay they used to all be 450. now many of them are 550 and many of the business versions of these cards are even at 595 600 that kind of level tier 5 invitation only cards now these cards are probably just a dream for the average person but if you are very wealthy and you already spend an obscene amount of money on your other cards like your other american express cards or whatever you might just get an invitation we’re going to be spending an obscene amount of money in here so we’re gonna need a lot more help sucking up to us because that’s what we really like sure if i may say so you’re in the right store now the most famous card in tier five is probably going to be the amex centurion card the quintessential black card but then we also have the jp jpmorgan reserve card okay from jp morgan private bank then overseas we’ve got the koot silk card in the uk that’s only for members of the koots private bank we have the insignia credit cards those are bespoke design credit cards we did a video on those very very impressive and you’ve also got the dubai first royale okay we have videos on all of these and i’m not going to spend too much time on them but basically the benefits really range from card to card okay there’s no one formula for cards like this some have high annual fees like the amex black card has a five thousand dollar annual fee others have no annual fee at all like the coot silk card but you do need to be a member of coote’s private bank and that has its own requirements you have to have like a million british pounds invested with them to get an invitation or to be a member of it so that’s kind of the the limitations and then in terms of benefits what do they provide you well the amex black card it does earn points okay and it gives you centurion lounge access and stuff like that but really with a lot of these cards they focus a lot more on concierge services okay because they’re catering to super wealthy people who have enough enough money to uh fly business class or first class or whatever so really they’re providing rich people with opportunities to lessen their stress and help them acquire things that they need to acquire like reservations at booked out restaurants or literally the dubai first royale they pride themselves on being able to get you whatever you want like you want an elephant you can literally phone up the concierge and be like hey i want to buy an elephant just organize it for me how do i buy it do i need a permit for it whatever they’ll do it for you they’ll get you an elephant because you know you’ve got enough money in the bank you’ve shown that you will follow through and buy that elephant so they’ll help you get it all right now let’s get into some 2021 updates and things to look out for as you climb the credit card ladder okay now you need to first of all pick strategy what do you want to earn do you want to earn cashback or do you want to earn points now if you’re earning cashback um it’s pretty simple because you’re just accumulating cash okay many people because of the pandemic we haven’t been doing so much traveling i myself i went to mexico a few weeks ago but right now i’m cool with not doing that much traveling it’s just a hassle you have to get covered tests everywhere you go i mean you have to have a covert budget now these covered tests they cost so much money like a hundred dollars per person you go with a family of four you literally have a bud you need a budget for that right you could be spending a thousand dollars on cover tests anyway rant over so i’m fine with just chilling out not traveling for a while but saying that you know i might just randomly book a five-star luxury vacation next week you never know anything could happen anyway so pick a strategy cashback or travel rewards if you are earning travel rewards there’s one very big thing to watch out for so you need to think about what do you want to earn do you want to earn transferable points or do you want to earn hotel points and airline miles now what you need to watch out for though is points devaluations if you go for airline and hotel cars okay because a lot of these companies they sold a lot of points and miles during the pandemic in order to keep themselves afloat i’ll give you a great example hilton it sold one billion dollars worth of hilton loyalty points to american express during the pandemic and now hilton has started devaluing their points okay that’s what happens they’ve sold so many points they don’t want to honor them all at full price they want to devalue them so it limits the amount of free night redemptions people can get all right it’s a really sneaky move but yeah it’s it’s inflation guys basically the same principle so now a night at a top-tier hilton in the maldives for example is going to cost you 150 000 points whereas it used to cost i think it was only 95 or something right so they’ve started devaluing their top tier awards maybe they’ll be moving down the award levels and a lot of companies have done this united american airlines delta hilton they all sold loads of points during the pandemic in order to bring in extra revenue so do be aware for devaluations to get around this i would suggest getting cards that give you transferable points okay like the chase sapphire preferred or the amex gold or things like that city thank you points you know systems where you can keep those points with those banks and then when you want to use the card you can decide okay when you want to actually book an award you can decide okay i’ll transfer my points over i’ve already figured out how much it’s going to cost if there’s award availability you transfer your points to that airline and immediately book all right you don’t want to get trapped in an airline or a hotel with a point devaluing now i’m not saying don’t get hotel or airline cards at all but my one piece of advice is that if you want to get one of those cards just have a plan for how you’re going to spend the signup bonus and spending that sign up bonus within the next few months okay don’t plan on holding those points for a year or more because you may see devaluations all right we mentioned sign up bonuses and speaking of signup bonuses let’s talk about them okay because in 2021 a lot of climbing the credit card ladder is really about following the sign up bonuses especially amongst the tier three cards some of them are offering really great bonuses so let’s talk about them one of the best ones out there right now is the chase sapphire preferred 80 000 points that’s worth easily a thousand dollars and they are transferable points like we recommended so that protects you from any points devaluations caused by the whole pandemic and selling all those miles um then we do have another airline card for you the united quest card now that is brand new this year it also has a hundred thousand point sign up bonus now they are united miles so you may be at risk from some devaluations but if you apply for this like we said just have a plan on using the points reasonably soon just don’t hold them for too long and you should be fine hundred thousand points it’s a no-brainer next let’s look at american express so the amex gold currently has a 75 000 point sign up bonus and the amex platinum a tier 4 card has a 75 000 point sign up bonus plus you get 10 points per dollar on gas for like 15 000 for spending and i think it’s the first six months so that’s an incredible deal then if you’re looking for cash back the blue cash preferred is offering 400 in signup bonus and that is really really high for a cash back card okay and then there’s one more thing that you shouldn’t miss out on and that is referrals okay american express is offering some really high referral bonuses so if you are in two-player mode in 2021 right you’re doing the credit card game with your husband or wife boyfriend or girlfriend or just friends or whatever make sure you use those referral links especially from american express to refer each other and you could get 30 000 extra points just for referring someone okay and they still get the sign up bonus as well all right guys so that is the update for 2021 and if you are interested in doing what i do talking about your hobbies on youtube okay i don’t just have this credit for channel i have a ski channel science fiction channels all sorts of different channels we have created a youtube course that you guys can check out it’s called youtube viral mastery it’s a course on how my business partner and i built nine youtube channels with over two million subscribers it’s been a heck of a ride thanks to you guys so if you’re an aspiring youtuber as a free preview of the course just click below and check out our masterclass on how to start a six figure youtube channel without making all the stupid mistakes we’ve made along the way interested check out the details below alright guys we had a lot of fun making that course and i do think we have a really high quality product so if you are interested um the link is below you can watch the free training or you can upgrade to the course whatever you want to do check it out as always we’ll put a lot of the links to many of the things we’ve mentioned in a pin comment and in the description below thank you so much for watching please subscribe if you’re new




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