What’s in my wallet?   Well, although that’s the Capital One catch phrase, it’s not one of their cards.     As I explain in my credit card article, the cards in my wallet are listed below.    By using these cards wisely, I manage to earn just over 3% cash back (or cash back equivalent) on average.

• Citi Double Cash – This is my default credit card, meaning if what I’m buying doesn’t specifically fall into a category for one of the cards below, this is the card I use. It puts my cash-back floor at 2%.
• Chase Freedom  – Although not as rewarding as this card originally was, it’s still a useful card for getting 5% cash back in rotating categories each month. I use this card only for making purchases in the qualifying 5% category that quarter.   You have to click a link each quarter to earn that cash back, and also be sure not to spend more than $1,500 each quarter in the extra cash back categories, or else you’ll drop to 1% cashback, half of what you’d be getting with the Citi Double Cash.
• Citi Dividend – Much like the Chase Freedom card, this card was originally a lot better deal, but still great for getting 5% cash back in rotating categories each month. I find the categories aren’t as good as those on Chase Freedom, but at times it has a category like airlines or grocery stores, where I may easily spend a couple thousand dollars in a quarter.   You have to click a link each quarter to earn that cash back, and there is an annual cap of $300 ($6,000 of annual spending at 5%) for how much cash back you can earn at 5% in a year.   If you reach that cap, put the card away until January of the following year.
• Sam’s Club Mastercard issued by Synchrony – This card gives you 5% cashback on gas (at all gas stations, not just Sam’s, with the exception of other clubs like Costco), 3% on restaurants, 3% on travel (airlines, hotels, rental cars) and 1% on everything else. This is the only card I use for gas, and very frequently is my go-to card for restaurants and travel, unless they fall into a 5% category on another card.   Costco has a very similar card, where you get the exact same benefit, except 4% back on gas instead of 5%.   You also get 2% back at Costco on this card.   I recommend you get the card for the club at which you belong, and they’ll often give you a one time $30 to $60 instant refund at the register the day you sign up for the card in the club.

• Certain Airline and Hotel-specific cards – The following cards are solely used for the airline or hotel with which they’re associated (with the exception of my spending more during the first month or two to hit the minimum spend to get the opening mileage bonuses). Beyond often offering a cash-back equivalent via miles or points that is worth well more than 2% cash back, they also provide added benefits like free checked bags, huge initial miles/points bonuses, or increased status at the airline or hotel (which in turn means more points or miles or other valuable perks).  As you’ll see, I pretty much only fly three airlines and try to stay at Hilton-branded hotels (usually Hampton Inn) so I realize I may not be capturing the airlines and hotels that are relevant to you.
  • JetBlue Plus Barclays Card.  Although this card has a $99 annual fee, the 30,000 miles after you spend $1,000 as well as the free checked bag for you and family members flying with you make it well worth it over the standard JetBlue card.   Even if you only pay for it for one year, those 30,000 miles are worth well more than $99.
  • Southwest Chase Business and Personal Cards. These cards carry annual fees between $69 and $99 and give mileage bonuses between 40,000 and 60,000 miles each depending on the time of year and what promotion is going on.   You’ll likely have to spend $1,000 or $2,000 on the cards to get the promotional miles, but those miles are worth well more than the annual fee and opportunity cost of missing out on cashback from those purchases.   Plus, one of the best perks in the airline industry is the Southwest Companion Pass.   Once you hit 110,000 miles in a year, you basically get buy-one-get-one on Southwest for you and your favorite person for the remainder of that calendar year and the following year.
  • American Airlines AAdvantage Platinum Select Citi Card. There is typically a $95 annual fee, but it’s waived for the first year (perhaps keep the card for just shy of a year).   With $1,000 of spending you’ll get 30,000 miles plus a free checked bag on American for you and your family flying with you when you use the card to buy your flight.
  • Hilton HHonors Amex -  This card does not carry an annual fee, and although there are other Hilton cards that give more upfront miles, this is a nice one to use just for booking with Hilton-affiliated hotels.   You automatically get a Silver Status with a 50% point bonus at the hotel, plus an additional 500 points per online reservation, and another 7 points per dollar for using the card.    I average over 25 points per dollar spent for my typical stay, which is the equivalent of over 10% cash back when you consider a $150 room can be booked with 30,000 points.