Most credit card guides are packed with affiliate links and questionable recommendations designed to make the author money—not to help you. This guide is different. It’s an honest, no-nonsense look at three of the best credit cards worth applying for.
In this article, I’ll share the best credit cards, why they made the list, who they’re best suited for, and how to actually use their benefits to improve your financial life.
1. Fidelity 2% Cash Back: Best For Everyday Spending
Let’s start with what I consider the most practical credit card for most Americans. The Fidelity 2% cash back card offers something surprisingly rare in the credit card world: simplicity that saves you money.
Why 2% on everything beats complex category systems
While other cards tempt you with flashy 5% categories and rotating rewards calendars, there’s something powerful about earning a consistent 2% on every single purchase. The mental energy saved from not tracking categories or promotion calendars is worth more than potentially earning 3-4% in specific categories. Think about it–how many times have you pulled out the “wrong” card at checkout because you couldn’t remember which one gives extra points at restaurants this quarter?
Most people overestimate how much they spend in bonus categories, making a flat 2% cash back more valuable in reality. The average household earns more with consistent 2% cash back than juggling multiple category cards, especially when you factor in the mental overhead of tracking everything.
Feel free to check out my other articles to learn more about credit cards, how they work, and how to avoid debt:
How to maximize your rewards (and where to deposit them)
One of the card’s unique features is its flexibility in rewards redemption. You can direct deposit your rewards every month into your Fidelity investment account, essentially turning your everyday spending into automatic investments. If you’re market-savvy, you might even time your points redemption with market dips for optimal investing opportunities.
If you prefer more immediate gratification, you can set up automatic monthly cash transfers or choose from traditional options like travel, merchandise, gift cards, or statement credits. The choice is yours, and there’s no pressure to stick to one redemption method.
Why this no-annual-fee card beats premium cards
Here’s the reality check most credit card companies don’t want you to hear: most people spend less than $2,000 monthly on a single credit card. If you fall into this category (which I believe most of you do), it’s hard to justify paying a high annual fee for a premium card with similar benefits.
The beauty of the Fidelity card is that it helps establish good credit habits without the pressure to “get your money’s worth” from an annual fee. While premium cards often tout their travel perks and lounge access, ask yourself–if you’re not frequently traveling, why pay hundreds in annual fees when you could be earning straightforward cash back on every purchase?
2. Chase Sapphire Reserve: Best For Travel
Chase Sapphire Reserve consistently stands out as the most practical option for frequent travelers. Let’s break down why it earns its place in your wallet despite the hefty annual fee.
How this measures up to other premium travel cards
The Chase Sapphire Reserve’s real value comes from its comprehensive travel benefits, which truly shine when you need them most:
- $300 annual travel credit that’s automatically applied to any travel purchase.
- Practical insurance coverage, including baggage delay protection after just 6 hours and trip cancellation coverage up to $10,000.
- Primary rental car insurance coverage protects you on the road.
- Premium lounge access through both Chase Sapphire Lounge and Priority Pass network.
The card also offers equally impressive rewards:
- Higher point earnings, specifically on travel-related purchases.
- Simple redemption process through the Chase Travel portal.
- Guaranteed minimum point value for your rewards.
- Enhanced point value when redeemed for travel expenses.
What sets this card apart is how practical these benefits are in real-world situations. While other premium cards often make you work to extract value, the Chase Sapphire Reserve’s benefits kick in automatically when you need them. The straightforward points system means you’re not spending hours trying t
How to use your travel benefits (not just collect them)
The hardest part is making the most of all these benefits and not just letting them pile up, doing you no good. Fortunately, Chase Sapphire Reserve is very straightforward, and they have so many travel perks that it’s easy to take advantage of when you’re on the move. For example, their $300 annual travel credit applies automatically to any travel purchase–no hoops to jump through or benefits to activate.
The Priority Pass membership is notably better than Amex’s version. You can use it at airport restaurants (getting $28-32 per person in free food), and many lounges accept digital membership cards for quick access. These practical touches make the benefits actually usable in real-world situations.
Why this card is great for frequent travelers
To make this card worth it, you’d need to spend around $3,667 per month on travel and dining to break even. However, here’s the game-changer: a single canceled flight or delayed baggage incident can more than justify the annual fee. The included insurance becomes priceless when you’re stuck buying emergency clothes and toiletries due to a delayed bag.
This card makes the most sense if you:
- Travel at least once every two months, regularly rent cars, and want primary insurance coverage on them
- Live near airports with good Priority Pass lounges or restaurants
- Can take advantage of partnerships with services like DoorDash and Lyft
The bottom line is that while the annual fee might seem steep at first glance, frequent travelers can easily extract more value than they pay for. Just remember, this isn’t a card to get aspirationally. Make sure your current travel patterns justify the cost before applying.
3. American Express Platinum: Best Luxury Option
Let’s be clear upfront–this isn’t a card for maximizing points or getting the best return on your spending. The Amex Platinum is about luxury experiences, particularly airport lounges. Let’s break down if the steep $695 annual fee makes sense for your travel style.
The truth about airport lounges (when they're worth $695/year)
Centurion Lounges are genuinely premium spaces. They are some of the best and most high-class lounges available for cardholders. Most have better food and beverage offerings than Priority Pass lounges, and some even offer spa services and premium wine selections. However, before you get too excited, there’s a catch–they are usually only available in major hub airports and can be extremely crowded during peak times.
The real value of these lounges depends heavily on your home airport and travel patterns. If you regularly fly through airports with Centurion lounges, you might get $50-75 value per visit–which can add up quickly for frequent travelers.
Beyond Centurion lounges, international lounge access is extensive and includes lounges that are better than those in Chase’s network. Plus, if Delta is your airline of choice, the Delta SkyClub access included adds enormous value to your membership.
Why you shouldn't get both the AMEX Platinum and Chase Sapphire Reserve
Many travelers make the mistake of thinking more premium cards equals more benefits. However, the redundancy between these cards creates several problems. You’re paying over $1,200 in annual fees for overlapping benefits; many of the transfer partners are the same, and you’ll need to spend a tremendous amount to justify both fees.
Beyond the financial waste, managing benefits becomes overwhelming. Each card has its own credits to track and maximize, and you’ll constantly need to decide which card to use for which purchase. The mental energy required to maximize both cards isn’t worth the extra rewards.
Instead, choose one premium card that better matches your specific travel style: Chase is for more practical travelers who value simplicity, while Amex is for luxury-focused travelers who want premium experiences.
Who should really get this card
Let’s get specific about who should actually consider dropping $695/year on this card. While the Platinum’s benefits sound impressive at first glance, they only deliver real value for a particular type of frequent traveler. The Amex Platinum is ideal for:
- Business travelers who regularly fly through major hubs with Centurion lounges
- People who value luxury experiences over pure point maximization
- Travelers who can naturally use most of the statement credits without changing their spending
The card makes particular sense for business owners who can write off the annual fee as a business expense, frequent international travelers who value lounge access abroad, and people who regularly book luxury hotels and can benefit from Fine Hotels & Resorts perks.
Before applying, be honest about your travel habits. This isn’t the card for you if you’re primarily focused on maximizing points for economy travel, you travel less than once every two months, or you find yourself stretching to use statement credits. Remember–forcing yourself to spend money to justify benefits isn’t a winning strategy.
What I Look For in a Good Credit Card
Let’s go beyond the marketing hype and talk about what actually makes a credit card worth having in your wallet. Most credit card comparison sites focus on flashy sign-up bonuses, but I’m more interested in long-term value.
What makes a credit card truly valuable
The most valuable credit card benefits are ones that enhance your existing lifestyle. You don’t want to get a credit card that forces you to change your spending habits–instead, look for one that rewards what you’re already doing. Look for rewards that align with your natural spending patterns, insurance and protections that actually pay out when needed, and statement credits for services you already use.
Customer service quality becomes crucial in critical moments, too. When your flight is canceled at midnight in a foreign country, you’ll care less about points and more about reaching a helpful human representative. Consider how easy it is to reach real support, their track record for handling travel disruptions, and their reputation for siding with customers in disputes.
The best perks are the ones that don’t require extra work. Some credit cards seem to intentionally make benefits difficult to access, hoping fewer people will use them. Focus on cards offering automatic statement credits without registration, benefits that don’t need constant activation and straightforward redemption processes.
Why long-term value beats sign-up bonuses
Sign-up bonuses can be deceptively attractive–that 100,000-point bonus sounds amazing, but what happens after year one? Many people get stuck with inappropriate cards after chasing bonuses, only to find that the long-term cost of annual fees often exceeds the initial bonus value.
Instead of focusing on the flashy welcome offer, consider the sustainable value that compounds over time. For example, a consistent 2% return on everyday spending might not sound exciting, but it adds up significantly. Building a relationship with one card issuer often leads to better treatment and higher credit limits over time, and long-term cardholders typically get targeted for special offers anyway.
Let’s do the math: A $750 sign-up bonus divided over two years is only $31.25 monthly. That same amount could be earned through regular spending on a solid cash-back card–without the pressure of meeting spending requirements or paying annual fees.
A realistic look at annual fees vs. benefits
When evaluating annual fees, look beyond the obvious numbers and remember to consider the hidden psychological costs, such as:
- The time spent managing benefits and credits
- The stress of remembering to use various perks before they expire
- The opportunity cost compared to simpler no-annual-fee cards
Break down the actual value of benefits realistically. If a lounge visit is worth $50, how many do you actually make? Will you use all those Uber credits every month, or will some expire unused? Are you paying for benefits you could get for free elsewhere? Sometimes, the simplest solution–like a no-annual-fee cash-back card–provides the best value for your lifestyle.
Why I Only Recommend These Three Cards
Many credit card sites bombard you with endless options, but I take a different approach. I’ve found that these three cards cover nearly everything most people need–and often, you don’t even need all three.
Quality over quantity approach
Each card serves a distinct purpose without overlap, so you receive benefits in the areas that matter most. Whether it’s a dedicated travel card or a straightforward cash-back card for everything else, this simplified strategy maximizes your returns while minimizing hassle.
Managing multiple cards isn’t just about remembering due dates; it significantly increases the risk of missed payments and debt accumulation. The mental bandwidth required to maximize many cards is substantial, and frankly, it rarely justifies those high annual fees.
Card churning is rarely ever worth it
I strongly advise against card churning. While the allure of sign-up bonuses is tempting, it can temporarily damage your credit score, and banks are increasingly cracking down on churners. For most people, the time investment rarely justifies the returns.
There are hidden benefits in simplicity
Simplifying your financial decisions has hidden benefits, too. There’s less stress about which card to use for each purchase, tracking spending becomes more straightforward, and you can build better relationships with card issuers. Remember, when it comes to your finances, the best approach is usually the most boring one.
How to Choose Between These Best Credit Cards
Choosing the right credit card doesn’t have to be complicated. Let’s break down a practical approach to selecting the card that best fits your lifestyle and spending habits.
A simple decision tree for choosing your card
Deciding on the best credit card doesn’t have to feel overwhelming. Instead of sifting through endless options, you can decide by answering a few simple questions about your lifestyle and spending habits.
Begin by assessing how often you travel. If you travel fewer than six times per year, the Fidelity 2% Cash Back card is likely your best choice. However, if you travel more frequently, consider your travel preferences. Do you value luxury experiences like access to lounges and premium hotels? If so, the American Express Platinum card may be a great fit. On the other hand, if you prioritize practical benefits like dining and travel perks, the Chase Sapphire Reserve is an excellent option for frequent travelers.
Finally, consider how comfortable you are with paying annual fees. If you’re okay with them, choose the Chase Sapphire Reserve or Amex Platinum based on whether you value practicality or luxury more. If annual fees are a concern, stick with the Fidelity 2% Cash Back card.
Once you’ve landed on the card that works best for you, take a moment to evaluate how you’ll use it. Remember, the goal isn’t just to collect points or perks–it’s to make your card work for you.
If you’re still undecided, start with the Fidelity 2% Cash Back card. It’s the simplest, most practical option for most people–and you can always upgrade to a premium card later if your lifestyle and spending habits evolve.
Your spending patterns matter more than perks
When it comes to choosing the right credit card, the Conscious Spending Plan is the perfect tool to help you align your card choice with your financial values and real-life habits. Instead of rigid budgets that feel restrictive, the Conscious Spending Plan takes a forward-looking approach: allocate your money intentionally across four key areas–fixed costs, investments, savings goals, and guilt-free spending.
For example, if most of your spending falls into guilt-free categories like dining out, a straightforward cash-back card like Fidelity 2% might be your best match. If travel dominates your expenses and you value perks like lounge access, Chase Sapphire Reserve or Amex Platinum might better suit your needs. The idea is to pick a card that complements your existing habits–not one that forces you to spend more or feel guilty for not maximizing perks.
The plan also highlights the importance of flexibility. Maybe right now your focus is on building savings or covering fixed costs, so a no-annual-fee card makes the most sense. Over time, as your financial situation evolves, you can upgrade to a premium travel or luxury card that better fits your spending priorities.
The key is this: conscious spending means being intentional about where your money goes, whether it’s paying for essentials, investing in your future, or enjoying the present. Your credit card should work for your lifestyle–not the other way around.
Example of chasing perks getting out of hand
Meet Annie and Emery, a couple with a combined income of $225,000 who’ve fallen into the common trap of optimizing credit card points. Annie, in particular, has developed habits that show just how easy it is to let the allure of points and perks take over your financial decisions. While their pursuit of travel hacking has brought some rewards, it also comes with hidden costs they’re just beginning to recognize.
Between juggling over 10 credit cards and striving to optimize every purchase, Annie has created a system that she admits is difficult to manage. While they’ve enjoyed perks like free flights, it’s also clear that they don’t need to rely on credit card points to afford travel with their combined income. Annie’s defensive responses to my questions shows how deeply ingrained these habits have become.
[00:19:03] Ramit: How many cards do you have?
[00:19:05] Annie: Too many.
[00:19:06] Ramit: How many?
[00:19:07] Annie: I don’t even know.
[00:19:08] Ramit: What?
[00:19:09] Emery: At least 10.
[00:19:12] Annie: And I don’t use them all. I don’t use them all.
[00:19:15] Ramit: Wow. A lot of defensiveness here. I hadn’t even finished my sentence. I don’t use them all. I’m just saying, it’s not like I use them all.
[00:19:22] Annie: I use them for points.
[00:19:25] Ramit: You use them. If you have 10 cards, I’m pretty sure you’re using them, right?
[00:19:29] Annie: I use the credit cards. Usually, we have one or two that are our main cards. I try to optimize, and I try to travel hack.
[00:19:40] Ramit: I love optimizing. I need to squeeze every fucking mile and cent from these credit card companies.
[00:19:49] Annie: It did pay for our trip. It paid for our plane tickets, which is nice.
[00:19:57] Ramit: I don’t mind. First of all, I don’t mind credit card points. I don’t mind it. You know what else could pay for your flight? Your 225,000-dollar joint income.
This conversation illustrates how chasing points can lead to overcomplicating your finances, often to the detriment of simplicity and peace of mind. Annie’s desire to optimize every dollar has clearly paid off in some ways. Still, there’s a significant cost–both in terms of mental energy and financial efficiency–that they haven’t fully considered.
As the conversation continues, Annie acknowledges the negative ramifications of her hyper-focus on points optimization. Even Emery, who initially sees her points strategy as a harmless hobby, begins to recognize the deeper issues. Annie admits she’d prefer to focus on more meaningful roles, like being a great mother, over being a “great points optimizer.”
[00:21:13] Ramit: Would you be willing to not get as many points as you’re currently getting? Look at that smile.
[00:21:20] Annie: Yes.
[00:21:21] Ramit: She’s like, motherfucker. What is he talking about? Would you be willing to sacrifice, I don’t know, 200,000 points a year, I don’t know how many points, in order for a much simpler infrastructure?
[00:21:34] Annie: Yes, I do want to do that. And even with our guilt-free spending, it would be nice. I know he mentions it would be nice if my guilt-free spending is on a debit card because I’m less likely to spend it if it’s on a debit card versus a credit card.
[00:21:51] Ramit: Your actual behavior with money is actually causing you negative ramifications. I just don’t think you’re making the connection. And the reason you’re not making the connection is that you are so driven by optimizing everything. You’re going to optimize yourself into total unhappiness.
[00:22:10] Annie: I agree.
[00:22:12] Emery: It just feels like the points just appear, and I don’t see her spending tons of her time managing it or anything. It almost feels like it’s a natural little side hobby that she’s doing, and that part doesn’t seem to bring her a lot stress.
[00:22:28] Ramit: Look at the biggest smile I’ve ever seen on Annie’s face. Annie, let me ask you a question. Would you rather be complimented as being a great mother or a great points optimizer? Tell the truth.
[00:22:37] Annie: A great mother, of course.
Annie and Emery’s story highlights a common pitfall of credit card optimization: the temptation to chase points and perks at the expense of simplicity and long-term financial health. While rewards can feel satisfying in the moment, they should never become the main focus of your financial strategy. The goal isn’t to win at points–it’s to build a system that supports the life you want to live.
“Start basic, then upgrade” strategy
When it comes to credit cards, simplicity is your best friend. That’s why starting with the Fidelity 2% Cash Back card is the smartest move for most people. It’s straightforward, has no-annual fee, and is designed to help you build good credit habits without the pressure of maximizing complicated perks.
Once your lifestyle naturally supports the need for premium benefits, consider upgrading to a travel card like the Chase Sapphire Reserve or Amex Platinum. But timing is everything. Jumping to a premium card too early can lead to wasted annual fees and unused perks. Here are some key signs it’s time to upgrade:
- You’re traveling frequently enough (six or more trips per year) to take full advantage of travel credits, lounge access, and insurance benefits.
- You consistently pay your balance in full every month, avoiding interest charges that can wipe out any rewards.
- You have a clear plan for using premium perks, like specific travel redemptions or luxury benefits, that align with your current habits.
It’s important to monitor your credit card usage as you progress. If you’ve struggled with monthly payments in the past, premium cards may not be the right choice yet. Remember, upgrading is not about adding complexity to your finances. It’s about building on a solid foundation when your lifestyle justifies it. Start simple, stay intentional, and only upgrade when it truly makes sense.
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