Credit Card Strategy
Credit cards are a great way to save for and even pay for entire vacations out right. Some give cash back and some miles and points to put towards flights and hotel stays. This strategy only makes sense if you are out of debt and can pay off your credit cards at the end of each month so are you are not paying any finance charges. If you are in debt, please read Saving for Vacation first.
The right combination of cards matter too and not all rewards are created equally. You should use certain cards for certain purchases to maximize your point/mile and cash earnings.
Delta SkyMiles® Reserve American Express Card
This is the premier Delta card at American Express. The big draw is a free first class companion ticket once a year. Also for a limited time you will be getting 5x miles on all Delta purchases. If you fly Delta frequently this card is a new brainer.
American Express® Gold Card
This is the perfect card for dining as it gives you 4x points at all restaurants as well as supermarkets. It also gives you $120 dining credit to use at Grubhub and a few other places. You also get 3x points on flights via amextravel.com which makes it a good overall card if you weren’t specializing.
Amex EveryDay® Preferred Credit Card
This is the perfect card for the every day purchases as you get 3x points at supermarkets as well as 2x points at gas stations. That seems ok but what really makes this card shine is when you hit 30 transactions in a month giving you a 50% point bonus. Those grocery points are now 4.5x and gas is now 3.5x. Using it on everything else then gives you 1.5x points
Discover it®
If you just want straight up cash without any annual fee then this is the card for you. What makes it so good are the various seasonal categories netting you 5% back on purchases up to $75. If you max this out you are potentially getting up to $300 back each year. Currently you get 5% back on Amazon.com, Walmart.com and Target.com, taking care of your Christmas shopping at a discount.
