How I Choose Credit Cards (Hint: It's Not Just About Points)
00:00:00.000 | Let me talk a little bit about my goals for cards this year.
00:00:02.820 | So I am always looking to maximize the earnings I get
00:00:07.100 | from all my everyday spending,
00:00:08.740 | all the category spending I have,
00:00:10.680 | but I'm not just gonna get a card
00:00:13.480 | because it earns more points on something I could spend on.
00:00:16.460 | Let's say I spend $500 a year on entertainment
00:00:19.720 | and right now I would be putting it on a 2X points card
00:00:23.500 | and now there's a card that offers 3X points on entertainment.
00:00:26.600 | I'm just gonna get an extra 500 points a year
00:00:29.320 | from that deal because I could have otherwise gotten the 2X.
00:00:31.680 | So getting 500 points, which might be valued
00:00:35.060 | no more than five to $10 is not worth me opening up a new card.
00:00:40.040 | So I really wanna see that the value I'm gonna get
00:00:42.900 | from a new card is probably gonna exceed at least $200 a year
00:00:46.960 | is probably the floor before I'm interested in opening it.