$$-$$$ Credit Card Strategy (part 3- Maximizer)

There are many credit card strategies out there which can be classified under 3 categories.

1) Gamer - Sign up new card with the sole purpose of getting the sign up bonus.

2) Strategist - Sign up cards to earn the best cash back % for each category.--> Our focus

3) Maximizer - Sign up cards that provide the best redemption options.--> Our focus

Ideally, you want to get the best combination from these 3 strategies. To give you some idea, these are some available redemption options.

• Best value: Airline redemption, transfer points to airline partners
• Using Chase Ultimate Rewards as example, if you redeem your points using Chase Reserve, you get 50% bonus points. For example, a $500 point is worth $750.
• If you want to redeem a business class/first class, your best bet is to transfer points to airline partners. With the Gamer approach, you can accumulate points quickly. I didn't redeem this before as I rather redeem it for more trips than to burn the points much faster for business class trips.


• Moderate value: Pay with points
• Believe it or not, Amex and Discover allows card members to redeem only 1 points and unlock saving such as $30 off $60, 20% off. 
• For it to work, you have to use cards that earn membership rewards (not cash back) like Amex Everyday and Discover It.


• Average value: Statement credit, gift card
• Statement credit basically give you a direct conversion. If you use a $1 point, it is worth $1 point.


• Worst value: Product redemption
• I don't know why people want to redeem for product as this gives the worst conversion value. For example, a $200 worth of product may be redeemed for $300 points. 
• You are better off buying the product in retailers where you can wait for a good sale.

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