A Credit Portfolio is a collection of various credit cards tailored to your unique spending trends. Below are the broad categories most credit portfolios have.
High Spend Category Cards
These cards have cash back bonuses for big spending categories like gas, groceries, or even online shopping. Their bonuses should be constant (not rotating) so you can utilize it throughout the year. Some cards offer very high rewards upwards of 5% or more. Many of these cards do have an annual fee so you will want to look at your spending habits to see if your overall rewards will not be overshadowed. There are many great cards with slightly lower cash back rates but no annual fee which is a great option for many people.
Top High Spend Category Cards:
American Express Blue Cash Preferred (1% – 6% cash back)
USAA Cashback Rewards Plus (1% – 5% cash back)
More coming soon!
Catch-All Cards
These cards have lower cash back (though should be no lower than 1.5%) but have no caps, no categories, and can be used for any purchases your other cards can’t maximize on. Be aware of cards that might have foreign transaction fees.
Top Catch-All Cards:
American Express Starwood Preferred Guest Card (2.3% – 11.5%)
Barclaycard Arrival Plus (2% – 2.1% cash back)
More coming soon!
Niche Cards
These cards have high cash back bonuses for very specific scenarios like restaurants, airlines, hotels, specific merchants, or certain times of the year. Tailor these cards to match your spending trends. Be careful of annual fees that may limit their overall effectiveness.
Top Niche Cards:
Chase Freedom Card (1% – 5%)
Discover it Card (1% – 5%)
More coming soon!
Force Multiplier Cards
These cards tend to have very expensive annual fees or do not have great cash back bonuses but can complement other cards you have to increase their rewards. While force multiplier cards tend to not have a place in many portfolios, their benefits can be very lucrative to certain people and are worth looking at as your portfolio matures.
Top Force Multiplier Cards:
American Express Platinum Card (~1%)
Coming soon!
Starter and Rebuilder Cards
These cards are specifically for those who do not have very good credit or are very new to the world of credit. The cards in themselves offer very limited rewards, however, play a much larger role in helping their owners prepare for more robust portfolio cards in the future. Whether you are college student who needs to build credit before being able to apply for top tier credit cards or you are someone who has a checkered credit history, these cards will help you get on your way or put you back on your feet.
Top Starter and Rebuilder Cards:
Coming soon!
I have a lot of similar cards in my arsenal. I think the Citi Double Cash Back Card is a nice catchall option as well. Check out my recommendations if you’d like:
http://myfinancialtrek.com/2015/06/02/the-optimum-combination-of-cash-back-rewards-credit-cards/
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