Top 4 Credit Cards for Investors
June 5, 2018
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More than almost anyone else, investors tend to be keenly aware of just how valuable their time is. Hours they spend studying markets and learning their craft must be used wisely if they hope to make it count. After all, when you’re angling to get the highest return and outsmart other investors, time is money.
For that reason, it’s fairly common for investors to use travel and other rewards credit cards to their advantage. Doing so takes up hardly any time at all, yet the rate of return can be astronomical.
With the right rewards card, you can easily earn up to 5% back on all your regular spending. Since you can achieve these returns without any effort or time invested, this is truly “free money,” provided you have the discipline to pay your bill in full each month.
4 Top Credit Cards for Investors
But, which travel or rewards card will you get? Most investors are inclined to consider cards that offer the highest rate of return for their time and effort. Here are four cards you should absolutely consider:
Chase Sapphire Preferred® Card
The Chase Sapphire Preferred® Card is consistently named as one of the top travel rewards cards on the market, and for good reason. This card offers a great rate of return with no annual fee the first year. You also get a signup bonus and important consumer protections.
Here’s exactly how this card works: Sign up and spend $4,000 on your card within three months of account opening to earn 50,000 points, worth $625 in travel. You’ll also earn 2x points on all travel and dining purchases and 1x points for all other purchases.
You can redeem your points for travel through the Chase portal or transfer them 1:1 to popular loyalty partners like United MileagePlus, Southwest Airlines, Marriott Rewards, and British Airways. You can also cash them in for high value gift cards and statement credits at a rate of one cent per point.
On the consumer side, The Chase Sapphire Preferred® Card comes with valuable perks such as trip cancellation/interruption insurance, primary rental car coverage, and baggage delay insurance. The annual fee on this card is $95, but it’s waived the first year. This gives you 12 months to try this card on for size before you have to commit. There are no foreign transaction fees charged with this card, making it ideal for international trips.
Capital One® Venture® Rewards Credit Card
Another personal credit card that’s ideal for investors is the Capital One® Venture® Rewards Credit Card. This card is unique in the fact that you earn a flat 2x miles for each dollar you spend without having to worry about bonus categories. On the redemption side, you can cash in your points for any travel you want at a rate of one cent per point.
Currently, you’ll earn 50,000 miles worth $500 in travel after you sign up for this card and use it for $3,000 in purchases within three months of account opening. The annual fee is $95, but it’s waived the first year.
Ink Business Preferred? Credit Card
While it’s smart to have a rewards card that lets you earn points and miles on your regular spending, you should have a separate business credit card if you own your own business. Doing so will allow you to keep business spending separate from personal spending. You’ll also be able to earn rewards on your business spending, which could add up quickly if you have considerable business expenses to cover.
One of the best cards for business owners who are also investors is the Ink Business Preferred? Credit Card. This card has a $95 annual fee that isn’t waived the first year, but it lets you earn valuable points in the Chase Ultimate Rewards travel program. This card also comes with no foreign transaction fees, making it ideal for business owners who travel abroad.
Currently, you’ll earn 80,000 points after you sign up for the card and use it for $5,000 in business purchases within three months of account opening. You’ll also earn 3x points on travel, shipping purchases, internet, cable and phone services, and advertising purchases with social media sites and search engines in addition to 1 point per $1 spent on all other purchases.
Since these points belong in the Chase Ultimate Rewards program, you can use them in multiple ways. Not only can you redeem them for travel booked through the Chase Ultimate Rewards portal, but you can transfer them 1:1 to Chase transfer partners. You can also use them for gift cards or statement credits.
Capital One® Spark® Miles for Business
If you’re an investor and business owner who doesn’t want to keep track of specific rewards programs, you should also consider the Capital One® Spark® Miles for Business. This card lets you earn a flat 2x miles for each dollar you spend without any need to track bonus categories. On the redemption side, your best bet is cashing in your points for any travel expense you want at a rate of one cent per point. However, you can also redeem your points for statement credits or gift cards.
Currently, you’ll earn 50,000 miles once you spend $4,500 on purchases within 3 months from account opening. The $95 annual fee is also waived the first year, making this a stellar card option for someone who wants to try out their new card’s benefits for a year for free. Finally, there are no foreign transaction fees with this card and the miles you can earn are unlimited.
The Bottom Line
If you’re an investor who is angling to get the most bang for their buck, make sure to explore travel and rewards card options that could help you earn free travel, cash-back, and more. Many cards make earning rewards easy, and you’ll score free money provided you avoid debt and use credit responsibly.
For investors seeking a high rate of return for their time, it doesn’t get any better than that.