Fix Your Travel Credit Card Mix So Your Points Actually Add Up

Summary

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Smart Travel: Upgrade Your Getaways

Episode: Fix Your Travel Credit Card Mix So Your Points Actually Add Up

Date: January 14, 2026
Hosts: Sally French and Meghan Coyle

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Episode Overview

In this practical and lively episode, NerdWallet travel experts Sally French and Meghan Coyle help listeners build the ideal travel credit card wallet so their points add up to free travel, real perks, and less wasted spending. They break down new trends in travel cards—highlighting Bilt’s new lineup, discuss the strategy behind mixing cards, and answer the eternal question: how many credit cards do savvy travelers really need? Along the way, they share personal hacks, actionable tips, and candid advice for maximizing credit card rewards without getting overwhelmed.

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Key Discussion Points & Insights

1. The Evolving Travel Credit Card Ecosystem

• Big Headline: Bilt launches three new credit cards, shaking up the rewards landscape.
• Annual Fees and Perks:
  • Bilt Blue: $0 annual fee
  • Bilt Obsidian: $95 annual fee, customize 3x rewards on dining or groceries ([03:31])
  • Bilt Palladium: $495 annual fee, 2x points on all spend (excluding rent/mortgage), $400 in hotel credits, robust transfer partners ([03:59], [04:35])
• Built Points vs. Built Cash:
  Introduces a new complexity—Built Points (transferable) and Built Cash (cash back), which accrue differently depending on the purchase and card ([06:03], [06:14]).

“I'm stressed. It's a whole other currency system to learn.” – Meghan ([06:20])

• Transition Deadlines:
  If you're a current Bilt cardholder, decisions on upgrades or switching must happen before January 30 ([07:00]).

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2. Airline and Travel Industry News

• American Airlines:
  Announces free high-speed Wi-Fi for AAdvantage members, joining other major airlines in offering free onboard internet ([07:25], [08:49]).
• Alaska Airlines:
  Major upgrades with Starlink Wi-Fi fleetwide, historic new plane order, and new international routes from Seattle, including London, Reykjavik, and Rome ([09:01], [09:15]).

“This makes it Alaska's largest fleet order in history.” – Sally ([09:15])

• Starlux Airlines:
  Chairman (and Taiwanese airline royalty) personally delivered their new flagship plane, signaling plans for long-haul and potential US-Europe routes ([10:00]–[12:13]).
  • Starlux is a coveted transfer partner (accessible via Alaska and new Bilt cards).

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3. Building the “Perfect Wallet”

Why More Than One Card?

• General Principle:
  No single card is perfect. Strategic combinations optimize rewards across categories ([01:47], [15:46]).

“I wish there was one perfect card, but usually you have to cobble together benefits and points from an entire wallet...” – Meghan ([01:47])

Credit Score Myths Debunked

• Having multiple cards can actually help your credit by increasing your total credit limit—reducing your utilization ratio, which is good for scores ([17:05]–[18:14]).
• Don’t apply for new cards right before major financial events (like a mortgage application) due to short-term dips in score ([18:41]).

Strategies for Choosing Cards

• Start Simple:
  If you only want one card, prioritize a solid general spending card with 2%+ cash back on all purchases ([19:29]), avoiding overcomplicated bonus categories.
• Add for Bonus Categories:
  Supplement with cards that reward your most frequent or sizable purchases (dining, groceries, travel) ([19:04]–[20:22]).
• Maximize Signup Bonuses:
  Signup bonuses are often the biggest windfall of points—plan card applications around large upcoming purchases ([20:26]).

Premium vs. Mid-Tier vs. Niche Cards

• Premium Cards = “Bougie Coupon Books”
  Justified by perks (lounge access, travel credits) only if you use those benefits ([23:30]–[24:55]).
• Mid-Tier/No-fee Cards:
  Use for broad rewards and to fill gaps (e.g., groceries, general spend) ([22:21], [28:19]).
• Niche/Limited-use Cards:
  Some cards are worth it for a single perk—like AmEx Platinum for Uber credits, or Hilton Aspire for the free night certificate, even if you rarely use the card for regular spend ([30:33]–[31:26]).

“There is definitely a case for having these credit cards that you use only for the coupon book value.” – Sally ([31:26])

Mixing Points Ecosystems

• Contain vs. Diversify:
  • Containing points within one flexible bank program (e.g., multiple Chase cards earning Ultimate Rewards) makes it easier to get valuable redemptions ([26:09]–[28:46]).
  • Diversification across banks (Chase, AmEx, Capital One, Bilt) gives access to unique transfer partners (Hyatt, Alaska, Starlux) ([29:29]–[30:15]).
• The “Chase Trifecta”:
  An example of strategic stacking: Sapphire Reserve/Preferred (premium travel), Freedom Unlimited (general spend), Freedom Flex (bonus categories), and optionally a business card ([28:46]).

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4. Real-life Card Usage (“What’s Actually in Our Wallets?”)

• Megan:
  • Uses an American Airlines card for status and an annual travel voucher ([20:53]–[21:34]).
  • Holds Hilton and Hyatt cards for specific bonus categories and perks (free night, gym memberships) ([32:12]–[32:25]).
• Sally:
  • Leans on high-cashback cards for general spending.
  • Holds premium cards for lounge access and statement credits ([32:01]–[32:40]).

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5. Listener Q&A: The Globetrotting Minimalist

Listener Question (33:05):
A self-described “36-year-old nomad and retiree” who travels internationally every 1–2 weeks asks if they should add to their card mix (currently: Capital One Venture X, Capital One Savor, AmEx Platinum).

• Sally:
  “You’re good.” Venture X gives 2x on everything, Platinum gives hotel status and travel benefits ([33:34]).
• Meghan:
  Suggests the new Atmos Rewards Summit Card—3x on Alaska/Hawaiian purchases, dining, and foreign purchases (unique among cards), making it potentially the best for regular spend overseas ([34:25]–[35:04]).
• Unique Perks:
  Alaska’s global partners (like Starlux and British Airways) and a 25,000-point global companion award anniversary benefit ([35:04]–[35:46]).

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Notable Quotes & Memorable Moments

• On getting overwhelmed by reward programs:

  “I'm stressed. It's a whole other currency system to learn.” – Meghan ([06:20])

• Reminder on unnecessary spending just to use credits:

  “I'm definitely the person who's been like, in December we need to go to Vegas and book a hotel room just so I can use my hotel credit, you know, and it's like, that's not a great way to live your life.” – Sally ([24:55])

• On point discipline:

  “I feel like I am always in this boat where I'm like, I have 8,000 JetBlue points and then I have 9,000 United miles and then always it's like, well, the flight is 10,000 miles… No free flights.” – Sally ([26:09])

• On advanced card strategy:

  “Having 26 credit cards does not mean that you spend 26 times more than everybody else… Sometimes you just don't actually use the credit cards except for the very niche purpose.” – Sally ([31:52])

• On travel comfort:

  “Airlines should give everyone blankets again. …What is worse, like freezing on a 8-hour [flight]?” – Meghan ([36:04]–[36:28])

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Important Timestamps

| Timestamp | Segment / Topic | |-----------|------------------------------------------------------| | 01:14 | Episode theme introduction & main question | | 03:31 | Bilt’s new suite of credit cards | | 06:03 | Built Points vs. Built Cash explained | | 07:13 | Deadlines and transition advice for Bilt cardholders | | 07:25 | Free Wi-Fi on American Airlines | | 09:01 | Alaska Airlines’ expansion—new planes & routes | | 10:00 | The allure (and drama) of Starlux Airlines | | 15:18 | Listener confusion: Is it better to have more cards? | | 17:05 | Credit score impacts of multiple cards | | 19:04 | Why to consider more than one card | | 22:21 | Choosing between mid-tier and premium cards | | 23:30 | Premium cards as “bougie coupon books” | | 26:09 | Keeping points in a single ecosystem | | 28:46 | The “Chase trifecta” strategy | | 32:01 | Divvying up wallet usage for max value | | 33:05 | Listener Q&A: Card mix for the global traveler | | 34:25 | Atmos Summit Card for int’l bonus spend | | 36:04 | Hot Takeoff: Airlines should bring back blankets |

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Conclusion & Final Takeaways

This episode is a jam-packed, no-nonsense guide for anyone wanting to make their travel points actually pay off. From deciphering the latest card launches to assembling the right mix based on personal habits, Sally and Meghan’s advice is as pragmatic as it is empowering. Their bottom line: be intentional in card selection, don’t chase every flashy bonus, and ensure your rewards strategy fits your real travel style and spending patterns.

Action Steps:

• Audit your current card wallet. Fill gaps with carefully chosen rewards cards (not just for sign-up bonuses, but everyday earn rates and transfer partners).
• Consider sticking to one major points ecosystem for redemptions, unless you need a very specific airline/hotel partner.
• Don’t be afraid to hold cards just for one valuable annual perk or status boost.
• Always check current rules and deadlines before making product changes, especially with recent card refreshes.

Smart Travel’s signature blend of nerdy enthusiasm, data-driven analysis, and real-life tips will help you fly farther for fewer dollars.

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Transcript

[A]

The following is a paid sponsorship, not an endorsement by NerdWallet's editorial team. Today's episode is sponsored by Bilt. It is 2026 and if you are still paying rent without Bilt, it might be time for a change. BILT is a loyalty program for renters.

[B]

That rewards you for what is usually.

[A]

People'S biggest monthly expense. That's rent. With bilt, every rent payment earns you points that can be used towards flights, hotels, Lyft rides, Amazon.com purchases and so much more. And here's something I'm really excited about. Starting in February, BILT members can earn points on mortgage payments for the first time. Soon you'll be able to get rewarded wherever you live and unlock exclusive benefits with more than 45,000 restaurants, fitness clubs, pharmacies and other neighborhood partners. Personally, I would redeem my points for the fitness classes. Redemption options include SoulCycle, Pure Bar, CorePower, Rumble, and Berries. See ya in the Red Room. It's simple with bilt, paying rent feels better because you can get more. And soon owning a home can feel better with BILT too. Earn rewards and get something back wherever you live. Join the loyalty program for renters at joinbuilt.com smarttravel that's J-O-I-N-B-I-L-T.com smarttravel make sure to use our URL so they know I sent ya.

[B]

The people want to know what credit card should they get or what's the.

[C]

Next credit card they should get? It might involve more than one.

[B]

Luckily that is the question we are.

[D]

Answering today and then some.

[C]

Today we're talking about building the perfect wallet. Welcome to Smart Travel, a deep dive into the tips, tools and tactics to maximize your travel dollars. I'm Meagan Coyle.

[B]

And I'm Sally French.

[C]

And we're the travel nerds ready to help you plan your next big trip.

[B]

And hopefully that trip will be covered in part by a great signup bonus on a travel credit card or cards.

[C]

I wish there was one perfect card, but usually you have to cobble together benefits and points from an entire wallet to maximize your award travel.

[B]

That is true. Before we get to that, our disclaimer. And that is that very obviously we will talk about a few credit card companies and for this episode, like many, many companies that are nerd wallet partners but that does not influence how we discuss them. The benefits, terms and fees mentioned were accurate at the time of posting. But things can change.

[C]

Things literally change. Mid us recording this episode. Shout out to Bill so With the knowledge that things can change, you should also realize that some offers may have expired by the time you're listening for the latest details, you should always follow the links in the episode description.

[B]

And then of course, if you do a card that you are interested in, you can apply for that card right on the NerdWallet website.

[C]

All right, the news of the day is Built Built just announced its new version of its rewards credit cards. And there are three of them with different annual fees. The Built Blue card with a $0 annual fee, the built Obsidian card with a $95 annual fee, and a built Palladium card with a $495 annual fee. We went from one card to three cards and I do want to point out that two of those now have annual fees. The old built Mastercard, which I have had a zero dollar annual fee.

[B]

Tell me, should I care about Bilt now? Because as you guys probably know, I have never cared about Bilt because it has always seemed so rent forward and I'm a homeowner. I need to know, do I need to care about this now?

[C]

Okay, the answer is so mixed. It's such a complicated question. Okay, I think the answer could be maybe. If you really want to go all in on the Bilt ecosystem of earning rewards. And there are some good reasons to do that.

[B]

You seem like a big built F.

[C]

I have been for the past couple of years and I live in an apartment that uses BILT to make rent payments anyway, so it's always been an easy option for me. But the cards do make it a little bit more complicated. I wanted to go through a couple of the big changes. One of them is that There is a $95 build Obsidian card that now lets you choose Whether you earn 3 points per dollar on dining or groceries. Which one would you choose?

[D]

Allie?

[B]

I guess we put the Chase Sapphire reserve for our dining stuff. So maybe groceries.

[C]

Okay, groceries.

[B]

I don't have a great grocery card currently.

[C]

There you go. So I think this $95 built Obsidian card could fill the gap for someone who has 3x on dining or groceries already and wants the other one. And the other thing I want to point out is the $495 Palladium card earns 2 points per dollar on everything excluding your rent and mortgage payments will earn built cash. So it's 4% built cash back on every single purchase you make. Like dining, groceries, anything. Just not on those rent and Mort. So it's kind of similar to the Capital One Venture X card, which I know you and I Already love.

[B]

Although I don't use that for my everyday spending.

[C]

Oh, interesting. Okay. I think if someone who's a big traveler wants to earn 2 points per dollar on everything and they really like the built ecosystem, like the transfer partners, more than they like Capital One's transfer partners, this card actually might be kind of interesting.

[B]

Yeah, 2x is really good. I have another card from bank of America that I get more than 2x, but I would say for most people, 2x is good. I am intrigued though. 495 dol annual fee.

[C]

Yeah, it is expensive, but it is much less than the Amex Platinum card or the Chase Sapphire Reserve. And I will say that similar to the Capital One Venture X, it does have travel credits that can help offset the annual fee. On the Built Palladium card, it's $400 in built travel hotel credits, but of course it's split into $200 in each half of the year.

[B]

That's so annoying.

[C]

I haven't even mentioned, like, the most confusing part of all of this, which is not only do all of these built cards earn Built points which you can transfer to, and they have good transfer partners. Yeah, they do have really good ones like World of Hyatt, Alaska Airlines, United. I feel like these are ones that people are familiar with and know how to get good value out of that.

[B]

I want access to those Alaska transfer partners because that's hard to come by.

[C]

Oh, it's so nice. The points are great. I think there is a catch with this new kind of currency they're introducing called Built Cash.

[B]

Yes. Okay, tell me about this because I'm like, what? Built Points are different than Built Cash?

[C]

Yeah, Built Points are different than Built Cash. You basically earn Built Cash on your everyday spending outside of like the built rent payments and the built mortgage payments. So it's this.

[B]

So the 2x I get is built cash.

[C]

The 2x you get is Built Points.

[B]

Oh, my gosh.

[C]

And then you actually earn different rates depending on which card you have. So for example, the Palladium card gets 4% built cash on everything, exclusively excluding rent and mortgage payments. So yeah, Megan, I'm stressed. It's a whole nother currency system to learn. So follow the links in the episode description to read about what we do know about the built 2.0 cards and built Cash and what you should do if you're a current or perspective built cardholder. And I do want to call out a couple of deadlines that are coming up very quickly. So if you're a current card holder, you have until January 30th to choose what you want to do with your old built card. That could be choosing one of the new build cards or transitioning to a Wells Fargo autograph card instead, or, you know, closing your accounts completely. If you already have a built card and you want to move to one of the new ones. NerdWallet confirmed with built that you will be eligible for the signup bonus. So it's a lot to think about in the next few weeks.

[D]

Okay.

[B]

All right. We will be following that news. We do have other airline news that we need to talk about. To start. American Airlines is rolling out free high speed WI FI on its flights.

[C]

Thank God. I've spent hundreds of dollars on WI FI on American Airlines.

[B]

I feel like American Airlines had among the most expensive WI FI services of any US Airline. And theirs was so annoying because it varied based on the actual flight. So you never even knew what it was until you got on the flight.

[C]

Oh, yeah, it was the worst. I've definitely spent, like, $49 for one flight to be able to get Wi Fi.

[B]

Remind you to have to slack me with that $49.

[D]

I know.

[C]

I'm like, okay, is slacking Sally worth $49?

[B]

Absolutely not. Just a reminder to get the free WI fi, you do have to be an AAdvantage member. It is free, though, to sign up. It takes 30 seconds. Give them your email. I know there is a cost to handing over your personal info, but I always just make a separate junk mail account so you can sign up for these things.

[C]

Wait, Sally, why do you sign up with a junk account? What happens if you're getting, like, credits or something to your junk mail?

[B]

Oh, I still get. I still get the credits, but I just. I don't want American Airlines to somehow be selling my data to someone else. And then I get all these other emails.

[C]

Okay, that's a choice.

[D]

My wild.

[B]

My personal email is for me. And if you have access to my real personal email, consider yourself special, which I think you do. Megan. Wow.

[C]

Okay. I'm honored. Be aware, though, that the free WI fi does not go into effect immediately. They say the full free WI fi rollout will be done by the early spring. But I'm crossing my fingers that I will have WI FI on my plane next week when I fly American.

[B]

I got to say, free WI fi these days on airplanes is now table stakes. Delta, JetBlue, United, even Hawaiian Airlines have been adding free WI FI options. So American Airlines is really just playing catch up here. Yep.

[C]

And another airline kind of playing catch up is Alaska. They're making some upgrades to their planes this year. One of the upgrades is that the airline is installing Starlink WI fi across its entire fleet. And they just ordered a bunch of new planes.

[B]

A hundred new planes, including five new widebody Dreamliners with options for even more planes to come out between now and 2035. This makes it Alaska's largest fleet order in history.

[C]

They're planning at least a dozen long haul international routes from Seattle, one of their hubs, by 2030, which is a massive evolution. Some of the ones launching this year are London, Heathrow, Reykjavik and Rome.

[B]

Many options for travelers, especially those out of Seattle. My question though is whether this also leads to more options in terms of award availability. Also whether this will mean more competition on international routes with other airlines and hopefully fewer old cramped planes.

[C]

Fingers crossed. All right, let's pivot to some fancy planes. And that's starlux.

[B]

Oh, yes. Starlux is so fancy. I've never flown them, but they did just take delivery of a new plane, which is its first Airbus A350 1000. And this is so wild. The chairman personally flew it from Airbus's headquarters in France to Taipei. I love that kind of CEO energy.

[A]

Yeah.

[C]

I don't know if you know this, Sally, but he's airline royalty in Taiwan.

[B]

Oh, really?

[C]

The former chairman of EVA Air, a well known five star airline out of Taiwan. And then he was ousted from that family business by his brothers.

[B]

Oh my gosh. Family drama.

[D]

Yeah.

[C]

And then he started his own airline, which is starlux. And it started during the pandemic, no less. It was so crazy.

[B]

Wow. Is there HBO show on this?

[C]

There is one, but not exactly about this succession. Have you seen it?

[B]

No, I haven't.

[C]

Oh my gosh, Sally, you're so behind on television shows.

[B]

I'm not. I'm not a big TV watcher. What is this about?

[C]

It's real life succession. It's about a family business, basically a big media conglomerate. Everyone is vying for control of the company after the patriarch, you know, so.

[B]

We need Secession Airline Edition.

[C]

And I would watch it immediately.

[B]

Interesting. And it would be starring starlux.

[C]

Absolutely.

[B]

All right, starlux.

[C]

I know you haven't flown them yet. I've only seen their airplanes, like when they first flew to la. They had.

[B]

You went inside one. Right.

[C]

It was so cool. Yeah. Their cabins are super modern. Very comfortable for the long haul, especially the business and first class. And starlux is an Atmos rewards partner, so you can actually book a Starlux flight with Alaska at most points.

[B]

All Right. Well, that's why I need to get the built so that way I can get Alaska ATMOS points so I could book this fancy flight. I really want to fly one. In fact, I might be going to Asia in May and I'm looking at a starlux flight. I really, really want to go.

[C]

Oh, this would be perfect. You should totally do it.

[B]

In the name of research.

[C]

Right now starlux mostly flies from SFO lax, like all these west coast airports to Asia. But this new plane that they just bought gives them range to fly nonstop to perhaps the US east coast, maybe Europe to Asia. So there's a lot of possibilities.

[B]

Now definitely expect to see European routes on starlux launching in the second half of this year. So more options for flyers, especially if you have those Atmos points.

[C]

All right, that's our news. Now to a segment we recorded in person in Scottsdale, all about building the perfect wallet for you.

[A]

The following is a paid sponsorship, not an endorsement by NerdWallet's editorial team. Today's episode is sponsored by Bilt. It is 2026 and if you are still paying rent without Bilt, it might be time for a change. BILT is a loyalty program for renters.

[B]

That rewards you for what is usually.

[A]

People'S biggest monthly expense. That's rent. With bilt, every rent payment earns you points that can be used towards flights, hotels, Lyft rides, Amazon.com purchases and so much more. And here's something I'm really excited about. Starting in February, BILT members can earn points on mortgage payments for the first. Soon you'll be able to get rewarded wherever you live and unlock exclusive benefits with more than 45,000 restaurants, fitness clubs, pharmacies and other neighborhood partners. Personally, I would redeem my points for the fitness classes. Redemption options include SoulCycle, Pure Bar, CorePower, Rumble, and Berries. See ya in the Red Room. It's simple. With bilt, paying rent feels better because you can get more. And soon owning a home can feel better with Bilt. 2. Earn rewards and get something back wherever you live. Join the loyalty program for renters at joinbuilt.com smarttravel that's J-O-I-N-B-I-L-T.com smarttravel make sure to use our URL so they know I sent ya.

[B]

Today's episode is sponsored by Quints.

[D]

Sally.

[C]

Every time we hop on the mic lately, you are bundled up as if you're podcasting from inside a walk in freezer. Is everything okay up there in San Francisco?

[B]

No, Megan it is not okay. It is so, so cold here. I think Mark Twain would have to update his line about the coldest winter he ever spent being a summer in San Francisco. Because you know what, my dude, this winter beats. It is so cold.

[D]

Yikes.

[C]

You know what you need, Sally? A really warm quince cashmere sweater. I always pack mine when I'm traveling in the winter. It is so soft it elevates every look even if the only clean clothes I have left are my airplane pants. And the best part, my quince cashmere sweater was only $50.

[B]

You know, I got to say I have been eyeing those stylish Mongolian cashmere sweaters. They feel first class but for economy. But I will say I am a fan of their Italian wool coats. I have been wearing mine non stop. It is tailored, gorgeous and soft enough that I actually enjoy being outside in 40 degree fog. And because the quality is so good, I do not feel guilty buying pieces that will last longer than my New Year's resolutions.

[C]

Especially nice when we're all trying to pack smarter look put together and not freeze while waiting for public transportation in a foreign country. I was so glad I had my Quinn sweater when it snowed on my very first day in Korea.

[B]

Oh well, if you like us are trying to stay warm and cute this winter, quince is the move.

[C]

Refresh your wardrobe with Quince. Don't wait. Go to quince.com smart travel for free shipping on your order and 365 day returns. Now available in Canada too.

[B]

That's Q-U-I-N-E.com smart travel to get free shipping and 365 day returns. Quints.com smarttravel so Megan, let's dive into the premise for this episode and I think it comes from a lot of listeners we talk to who say I have one credit card and what do I do next? Right.

[D]

They are trying to figure out can they earn more, can they pay for more travel with other credit cards? And the answer sometimes might be yes.

[B]

Yeah. And then on the other hand, I think there are many people who have tons of credit cards and might need to hold back. So for this episode we want to talk about building out that ideal wallet. What are the cards that you should and shouldn't have in there?

[D]

Because there are some that actually go together and work together really nicely and there are some that you're really trying to diversify and get a huge swath of airlines and hotels covered by some of the points and benefits.

[B]

So it should come as no shocker that of Course, our ideal wallet involves multiple credit cards. But I do want to acknowledge that there are many people who might not be ready to have a credit card at all. And that is completely fine. There are many reasons why you wouldn't. And there are many people who say, I just want to have one credit card. Now, my dad is like this. He's like, I've had the same credit card since I was 20. Why do I need to have another one? And I'm like, daddy travel so much. You need another one. But I do acknowledge where a lot of people come from that adding another credit card can just be one more thing to manage another bill to remember to pay off. It's another login. In the era of password security, maybe you don't want to add all of that. So there are perfectly valid reasons to not have multiple credit cards. But I think when it comes to people who say, how do I get all this free travel? How do I get into these lounges? How do I get into these upgrades? I am not a multimillionaire. How do I do this? And we typically say, you need to have more credit cards.

[D]

Yeah, maybe another one. And let's talk a little bit about credit score, because I think that's a common question with having multiple credit cards. Like, isn't that bad for your credit card score or anything like that? One thing we want to talk about is that when you get another credit card, it actually increases your credit limit.

[B]

Right.

[D]

They approve you for a certain amount of money that you can put on that card, and the total limit that you have actually increases your credit score.

[B]

Yeah. So applying for a credit card can have a small temporary dip in your scores because you are applying for credit. It looks like, does this person need more money? And that's not necessarily a good signal. But once you prove that you are paying that balance in full, then you have that higher credit line. And when you have more credit cards, you have a higher credit line. Now, assuming your spending remains the same, that actually helps your credit utilization ratio. So if your old credit limit was $50,000 and now it's $100,000, but your outstanding debt at any given time is only $1,000, then on an 100,000 credit limit, that's only a 1% credit utilization ratio, which is so excellent. Yes. And that's such a good thing for helping those credit scores.

[D]

Yeah. And another aspect of this you mentioned that your credit score might dip when you put in an application for a new card. You definitely don't want to put in applications for cards. Back to back to back. Because that can look like you really need some money.

[B]

Yeah.

[D]

But there are also other issuer guidelines or rules around maybe earning signup bonuses or how often you can open a new card. So you'll want to make sure that you know all the rules around that before you think about getting another card.

[B]

Of course, you know, if you're someone who might be applying for a mortgage next month, then probably applying for a credit card this month is not the wisest move. But generally speaking, if you are someone who doesn't need to have, let's say, another approval like a mortgage and but you are looking to get elevated travel perks, then definitely consider applying for a new travel credit card.

[D]

Okay, I think that's plenty of disclaimers.

[C]

Let's talk about some of the reasons.

[D]

Why you might actually want a couple of credit cards in your wallet. So I think the first one for me is earning more points on different bonus categories. So when you have just one card, you're limited to the number of points you can earn because maybe it only has a bonus category on dining and travel, and maybe you spend a lot on groceries. So applying for a new card that lets you earn more points on groceries would be a good fit to help you maximize how many rewards you can earn.

[B]

Yeah. So I would say if someone only has one card in their wallet, I want them to have a card that earns just a good rate on everything. I think back in the day it was 1%, and then it became 1.5%. And now I almost feel like 2% cash back rate on everything you buy is almost the going rate. Sometimes you see even more. And I really think that's important because one, I'll see many cards that have bonus categories like restaurants. And then you're at a cafe and you're like, is this a restaurant? Or how does this code? Sometimes you can't tell. And so if you know you have a card that gets a good rate on everything you buy, then you know that you're getting a good rate. Also, I think so many people have all these expenses that never fall into bonus categories, things like the kids, summer camps, or tuition. And I've never seen a card that has bonus points in summer camps.

[D]

That would be a hit, though, if there was one.

[C]

So.

[B]

So it's good to just have a great rate on everything you get.

[D]

Another reason you might want another card is to earn a big signup bonus. We often talk about these because it is like the biggest chunk of points you'll ever earn at Once when you sign up for a new credit card, and if you have multiple signup bonuses, you can combine those points and be able to pay for some really big trips. So that would be another reason. Again, a lot of rules around whether you're eligible for a big signup bonus, but that might be a reason to get another card.

[B]

So what's kind of like the primary card in your wallet then?

[D]

Okay, interesting. My card that I use every day is my American Airlines card.

[B]

Oh, really?

[D]

It's a city a Advantage Platinum Select MasterCard. And so it's a $99 card.

[B]

Okay.

[D]

And it doesn't earn crazy rates on anything. But the reason it's my primary card is because it helps me earn my elite status every year.

[B]

Interesting.

[D]

And like I said, the annual fee is $99. If you put $20,000 of spending on that card, then I earn a $125American Airlines voucher. So that basically pays for the annual fee. Those two things make it my regular card, and it's like a recurring thing that I use every year.

[B]

Wow.

[D]

But there's a lot of different strategies, so we'll talk about them.

[B]

Yeah. So you're saying your must have card is your American Airlines card? I'm saying a must have card is a great general spe.

[D]

That's not my must have card.

[B]

Oh, it's not your must have card.

[D]

My must have card is a general travel card that earns transferable points.

[B]

Ooh, interesting. Like we're talking to Chase Sapphire Reserve, Chase Sapphire Preferred, kind of platinum.

[D]

Yes. But you don't necessarily need those really expensive cards. Like most issuers have a around $100 annual fee card that gives you access to their transfer partners, often at a one to one ratio, meaning you trade your one Chase Ultimate Rewards point for one Hyatt point. That's a great rate and lets you basically get access to all these other companies that you can spend and redeem your travel rewards with.

[B]

Okay, that's very interesting. I would put that as not my must have card, but kind of my second card. Interesting. So I would always tell someone to start with just that general spend card and just be good with that. So I mentioned my dad earlier, who just has the the one card and his card gets 1% back. So, dad, if you're listening, upgrade to a 1.5% or 2% card, and then from there, then I would say go for something that you're talking about. So I do love these travel cards because this is where you start to unlock the transfer partners. And, you know if you're going for something like the Cheese Sapphire Preferred, which has an about $100 annual fee, much more manageable, and is kind of a good way to dip your toes in the water of fancy travel credit cards. But then once you kind of get comfortable with that, then I would say, you know, that's when you can upgrade to a Chase Sapphire Reserve Amex Platinum. And that's really when those perks are absolutely something that materializes into a meaningful, different travel experience.

[D]

Yeah, let's talk about that. So a lot of people ask, like, is having the premium card necessary? And I know you think about them as coupon books because that is how they're kind of structured. Can you tell us about that?

[B]

Yes. Someone at NerdWallet said that we should trademark the term bougie coupon book. I'm not sure if we can do that, but I keep calling it that. Many of these premium cards are bougie coupon books. If you can use them, they are amazing and you can maximize value and then some. If they're going to stress you out, and if you can't use them, then no. So I do think about these people who say, I am in the airport once a month and I'm always paying for all this food. And I say, get a card with lounge access, and the food alone can almost justify the annual fee. And then you look at all these other benefits, and I'm like, do you take a Lyft or Uber ever? And they're like, yes, once a week. And I'm like, oh, my gosh, these cards have Lyft or Uber credits. So there's so many benefits that I think people who live this lifestyle of frequent travel are already paying for. If you travel often, you are probably taking lifts and Ubers. If you travel often, you're probably buying food at the airport. And many of these cards offer benefits that cover those things that they are so worth it.

[D]

I will say, though, I think trying to keep track of all those credits is a total uphill battle.

[B]

Right.

[D]

Like, you have to do so much to remember. Like, these are the due dates of when these credits expire.

[B]

Yeah.

[D]

This is how much they are. Like, you still might overspend just trying to use the credit.

[B]

Yeah.

[D]

So that's something to consider when you're thinking about a premium card. I think if you can't use at least, like, two or three of the big ones on those cards, then it's probably not worth it for you.

[B]

I'm definitely the person who's been like, in December we need to go to Vegas and book a hotel room just so I can use my hotel credit, you know, and it's like, that's not a great way to live your life.

[D]

Yeah. When I think about the premium cards that I have, I really got them for the lounge access because that is something that I couldn't get through my 95 or $100 annual fee cards. Really? Those expensive cards are the ones that give you lounge access. And so if that is something you need, then a premium card added to the mix would really help.

[B]

Yes. And I think especially we're seeing this trend of premium cards getting more and more expensive and then adding more and more statement credits, which makes it more and more complicated to manage. So we do have so many articles on Nerdwallet.com that will say is so and so card worth it? So check those out and do that math for yourself to see if those cards are worth it. And Marin may not be, but of course we do have those cards, so they're worth it for us.

[D]

Okay, let's talk about when you're looking at building a wallet. Should you try to earn points in the same program? Whether that's, you know, an airline, maybe an airline card and a more general card that earns points that get transferred to that airline. Or maybe people are considering cards from two different issuers that earn two different types of transferable points. What do you think about that?

[B]

I feel like I am always in this boat where I'm like, I have 8,000 JetBlue points and then I have 9,000 United miles and then always it's like, well, the flight is 10,000 miles.

[D]

Don't have enough for anything actually.

[B]

No free flights. Right? Exactly. And I'm like, I'm just like never going to get enough that if you are too spread out sometimes it's just never good. It's like the jack of all trades, king of none kind of thing. So I do generally like to just contain it all to one program. Here's what I will say is this is my case for some of these bank issued cards like Chase or American Express, where often you can hold multiple cards in the same family and you can accrue the same points through different cards. The one that comes to top of mind is in Chase's program you could have something like the Chase Sapphire Reserve or the Chase Sapphire Preferred. And these are more of our coupon book bougie cards. And then you could also pair that with a no annual fee card like the Chase Freedom Unlimited or the Chase Freedom Flex and the Chase Freedom Unlimited is, you know, going back to when I said you should have a great general spending card. That card gets 1.5% back on all of your purchases. So easy to use. So again, kids summer camp, put that on the Chase Freedom Unlimited. The Chase Freedom Flex is a funny one because that's a rotating category card.

[D]

And so I never know what the category is. It's always a surprise when I log on.

[B]

And like, sometimes they're wacky. They'll be like, Walmart. You're like, okay, I gotta time all my Walmart purchases this quarter or whatever. And so that one is really great if your purchases do align. So there was one quarter where Chase Freedom Flex, their bonus category was Amazon. And we did have to buy a bunch of stuff for our wedding. And so I was like, okay, this quarter we are just buying all of our Amazon stuff and storing it. So if you can make it work out really well, you can. But basically my point is you can have all of these different cards that earn bonus points in your spending and then they are all in the same pot, this one being Chase Ultimate Rewards points. And then you can have this massive Chase Ultimate Rewards points and have way more freedom to do so much more with it versus 8,000 JetBlue points and 9,000 United miles.

[D]

Right. And we should mention that the Chase Sapphire cards only earn 1x on all those other purchases that fall outside of their bonus category. So when you get one of these cash back cards that actually earns Chase Ultimate Rewards, you're earning like 50% more points on these everyday purchases than you could if you only had a Sapphire.

[B]

Yes. I would say if you have a Chase Sapphire reserve, you absolutely should have another general spending card. And a Chase Freedom Unlimited is a great one. So you get more points on your general spending.

[D]

I definitely do that. I actually have the Chase Trifecta, which is usually like one of the Sapphire cards, either the reserve or the preferred one of the cash back cards, either the Freedom Unlimited or Freedom Flex like you were mentioning. And then a business card, if you also own a business. So I have a side hustle. I have a business card to put those business expenses on it, and I earn more Chase points that way. Yeah, you can visit the NerdWallet website and read all of our articles about the different combinations of cards within each program and learn how you can actually move points from one card to another and then, you know, transfer it to a transfer partner and get really great value out of your points, no matter which card you earned it on.

[B]

Right. Right. I think we should talk about the case when people just throw in another completely random card and when that makes sense.

[D]

Ooh, I think that makes sense. Well, one, you know, I only get premium cards for the lounge access. Okay. Sometimes you need to diversify your lounge access. Like, not every airport will have every type of lounge that you have access to. So by having an AMEX card and maybe an American Airlines card that gets you into both lounges, then you have possibly more airports that you could have airport lounge access in. I think there's that. And then number two, you could also make an argument for diversifying points because then you have access to different types of partners. So each credit card issued program has like this list of transfer partners. And some of them have really unique ones. Chase and Biltine have Hyatt. We love Hyatt as a transfer partner.

[B]

Shout out to Hyatt.

[D]

And so, you know, if you have an American Express card, but you're like, I do want to book some Hyatt sometimes, then you might need to add a Chaser built card to be able to earn points in that program and transfer them to Hyatt.

[B]

I want to make the case for cards that you don't put any spending on. Okay. Yeah.

[D]

I mean, those would be your premium cards, right?

[B]

Yes. So definitely. Like, even I have the platinum card from American Express and I don't put very much spending on it at all. Except my Ubers because they have the Uber credit and then my occasional Walmart Walmart purchases because they have the Walmart plus subscription. But there are other cards. You know, I love the Hilton credit cards. Yeah. And I love the Hilton Aspire credit card, which is again, one of those kind of coupon book credit cards. Super high annual fee, but they have a free night certificate. And I think for many people, that free night certificate alone can more than justify the annual fee. I've used that free night certificate at hotels that would have cost more than $1,000 per night. If you're someone who's going to pay CA for that hotel room, I'm like, oh, my gosh, having this credit card would save you money. So there is definitely a case for having these credit cards that you use only for the coupon book value.

[D]

I think that's a great point. Airline cards are also an example of that. They have airline specific perks that you might hold that card just to be able to get the free checked bags a couple of flights a year. You know what I mean? What people should understand about building a wallet is that you're not going to.

[C]

Use all of these cards all of the time.

[D]

Like I have a Prime Visa, like for Amazon prime and Whole Foods. Like I just for Amazon only use it there. I never use it anywhere else. And that's okay.

[B]

Having 26 credit cards does not mean that you spend 26 times more than everybody else.

[D]

That's right.

[B]

Sometimes you just don't actually use the credit cards except for the very niche purpose.

[D]

Exactly. And let's just talk about that for one second. So which cards do you use when it sounds like you save your Hilton card just to use the free night certificate.

[A]

Right.

[B]

Just at Hilton's, your everyday card is.

[D]

The cash back card.

[B]

Right, Right. I'm almost always doing that. And then I will just kind of Maxim. I have some bonus categories. So like I personally have the World of Hyatt card because they weirdly get bonus points at gym memberships.

[C]

I know it's really one of the.

[D]

Best cards for like people who love fitness.

[B]

So I'm like, oh, great, I just charge my gym membership to that. So some of those random bonus categories. But I really try not to sweat too much about really optimizing all these bonus categories because I do have one great card that earns a great cashback rate. Yeah.

[D]

And if you are someone who does like keeping track of the bonus categories and really trying to maximize your earnings, then that's what you should do is learn all the bonus categories on all your cards and then use it for the ones that it does have a bonus category in.

[B]

Sounds like we have created the perfect wallet. All right, should we move on to listener question?

[D]

Yes. We have one from two. And it's kind of related because he's also asking about his wallet.

[B]

Okay, you ready for it? Yes.

[D]

I'm a 36 year old nomad and retiree traveling internationally about every one to two weeks.

[A]

That's a lot. That's a lot.

[D]

I live out of my backpack and carry on suitcase.

[B]

Oh, I love you too.

[D]

And mostly in Airbnbs, my main rewards cards are Capital One's Venture X card and the Capital One Saver and the Amex Platinum. Are there any cards I should add?

[B]

Interesting.

[D]

What would you say? No.

[B]

You'Re good. I mean, what I love about the Venture X is that you are getting 2x miles on all of your purchases. So I just said have a great card that earns a great rate on everything. And so especially if two is staying at all these vacation rentals, you know that you're getting a great rate wherever you are. And it sounds like two is traveling internationally. So it might be an Airbnb. It might just be some random vacation rental company and you don't know how it codes. So I really, really like that. You also have the saver cards, so you are getting some bonus categories in there. And then also two's got the AmEx Platinum, so a bunch of those benefits. Hilton Elite status automatically. Marriott Elite status automatically for, you know, if two does stay in a hotel, you get to take advantage of that. Like, honestly, no. Would you add anything?

[D]

I have a crazy idea. There is one card that came out recently that's really good for international travelers.

[B]

Oh, I know what you're gonna say.

[D]

It's the Atmos rewards Summit card.

[B]

Okay.

[A]

Yes.

[D]

Which is the premium Alaska Airlines card. It didn't come out too long ago, but it gets three points for every dollar spent on Alaska and Hawaiian airline purchases, which we'll talk about in a second. Dining and most importantly, foreign purchases.

[B]

Yes.

[D]

Any charges on that card made outside of the US you get three times the points. So that's even better than the two times the points on the capital One.

[B]

This is such a new benefit that I'm just gonna say, like, I didn't think of this because it's new, but I'm so glad you thought of that. We don't see any other cards that have bonus points on foreign transactions. Talk about a random bonus category.

[D]

It's very unique. And also Alaska actually has a pretty large global network of partners. And so the points that you earn on that might actually be more useful than you think. Some of my favorites like starlux Airlines, which flies to Asia, even British Airways, if you're flying close by in Europe, you know, you're just doing a little Europe trip and hopping around. They have really good flight redemptions on short haul flights in Europe. They also have a 25,000 point global companion award every card anniversary. So if, you know, maybe Two is taking a friend somewhere on his international travels, he could get 25,000 points off their ticket. And Alaska has some of the best rates for international flights.

[B]

Okay, Two don't listen to me. Listen to Megan.

[D]

We will link to this card's review in our episode description.

[B]

Okay, final piece of this show, Hot takeoffs.

[D]

Okay, you got one. I think my hot take off.

[B]

She's laughing.

[D]

Is airlines should give everyone blankets again. I know. I mean, we might also get lice from it.

[B]

Okay, I want like a flight attendant or someone to weigh in. Do they watch those?

[D]

I hope so. I pray to God that they do.

[B]

But they're like flimsy little.

[D]

But what is worse, like freezing on a 8 hour.

[B]

I will say airplanes are way too cold.

[D]

That seems like like too cruel for an airline to do to you. And sometimes it is really cold and there's nothing you can do. Like if you didn't bring a jacket.

[B]

Or something you like also cold all the time.

[D]

That's true. This is really outing me for circulation.

[B]

BYO jacket. Even like when I'm going someplace really hot and they're like, oh, I was like going to Vegas the other day and my friend was like, you don't need a jacket, it's 105. And I was like, no, I need a jacket just for the plane.

[D]

But think about like when you go to a nice restaurant or something and they have blankets when you're sitting outside. If other people can do it, airlines can do it. They just gotta wash them, that's all.

[B]

Nice restaurant. Basic Economy.

[D]

They could be the same though. Why is Basic Economy down here? Make sure to follow Smart Travel on your favorite podcast app, including Spotify, iHeartRadio and Apple Podcasts to automatically download new episodes and also leave us a comment. We love the good comments, we love the five star ratings and we're so happy to read all your feedback.

[B]

This episode was produced by Tess Viglund. Claire Sosi and Hilary Georgie helped with fact checking and Nick Karisimi mixed our audio. And thank you so much to this beautiful studio. Eden Visuals.

[D]

And here's our brief disclaimer. We are not financial or investment advisors. This info is provided for general entertainment and educational purposes and may not apply to your specific circumstances.

[B]

We hope you're inspired to keep your passport full and your wallet even fuller. See you next time.