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hey guys it's Sebastian from a stubby and today we're gonna talk about the best starter slash foundational credit cards that you can get in 2018 but first if you are new here we're all about how to maximize Diwali for credit cards so how to get the most cash back and also how to travel for free if that sounds interesting than subscribe per channel let's get started kind of as a starting points but this video and most of my videos are really targeted towards people who are financially responsible this means that you are someone who is paying off your credit card info every single month or at least just not accumulating debt for the sake of it the idea is that you want to get more value that you're putting in so for a lot of these cards you're probably going to get between 2% and 5% back on all of your transactions and you don't really need to pay anything you shouldn't be paying interest because that means you're accumulating debt you should really be paying off your cards in full every single month otherwise none of this really makes sense and you're losing value with that out of the way starter cards as a name is probably not the greatest because you probably think that these are cards that you start with and typically you do kind of need pre starter cards in order to get these starter cards what I mean by that is that you typically either need student cards or secured cards or to just have credit in order to qualify for these cards for most of them they're not going to really issue these to you if you don't have anything if you are a blank slate so if you are a thin file or if you're a new file then there can't really do anything because they can't really trust you yet if you don't have any credit at all I'd recommend watching those videos because that's going to add a lot more value and then afterwards watch this one so let's say you got a secured card six months ago and you're waiting for that current card to either graduate or you're not really sure what to do with it you're going to start looking into starter cards most of these starter cards are ones that should not have annual fees and that still add value to you in the long term my recommendation is to start off chase cards so specifically the freedom card or the freedom unlimited or maybe the slate card if you can't get approved for those two other cards that we just talked about the main reason for this is because there's a rule called chase 5:24 which says that if you have more than five new accounts from any issuer then you're not going to be able to get certain cards so again by getting those other cards to Star Bank of America whoever else you're technically losing one of those 524 slots and most of those slots can typically be worth between 150 to maybe $1000 in value on the other hand though if you're someone who knows with a hundred percent certainty that you're never really going to get five new credit cards in a 24 month window then this doesn't really matter you don't really need to optimize towards that the benefit of the Freedom Card is that you get 5x back in terms of ultimate reward points for a lot of different categories throughout the year so for right now it's gas as well as mobile payments and again we have videos for each of these quarters typically so I'd recommend looking to the ones for 2017 as was the one for q1 of 2018 that way you kind of understand it a bit better the freedom unlimited is another good card to add here just because he gives you 1.5 X back Altima Ward points for all of your transactions for both of these cards the sign up bonus is typically 15,000 ultimate Ward points and at a minimum you're going to be able to redeem them for one cents per point so this means that fifteen dozen points is equivalent to one hundred and fifty dollars as a statement credit if you are someone who sees themselves traveling in the future maybe in one or two years then I would strongly recommend that you do not cash these points out just because they can be worth a lot more in the future especially if you're looking to do transfer partners so if a card let the Chase Sapphire Preferred or the reserve again in the future when you're looking at travel those points instead of being worth one cents per point can be worth one point five or maybe two cents per point if you want to put more information on those cards I'd recommend watching those videos because we've done a ton of videos at this point as a side note if you're looking to apply for any of the cards that we're talking about a really easy way to support our channel is to apply for the cards using the links on our site most of the cards we're going to talked about today can be found at their travel rewards or cashback if for whatever reason chase won't approve you and again getting the slate card which is a balance transfer card doesn't really work to get into the door then I would look into other cards or again maybe you just don't like chase or you don't care about those cards at all other good ones I'd recommend looking into or the discover a card so again the same idea as the freedom card you get 5% back on a lot of different categories every year the one interesting thing of the discover a card is that they have something called cashback match so all of the cashback that you earned throughout the year throughout your first year of having the card so let's say if you apply in February from this February until next February they're going to match it if you're someone who likes to do online shopping and this works out really well just because they have something called discover deals where you can typically get between 5% and 10% cash back in with cashback match that ends up being 10 to 40% back in my first year having the Discover card a few years ago I ended up buying a new computer and for that transaction I ended up getting a 30 percent cashback and it was something that was already on sale so again a ton of free value if you're willing to spend a few minutes looking into it the discover it miles card is another option you get 1.5 X back on all of your transactions and then in the first year cashback match meaning that you're getting 3% back this card only really makes sense in the first year though just because you're kind of looking at a minimum of getting 2% back if you're getting anything less than 2% it just doesn't really make sense because there are other cards that give you 2% the final 5% card that I strongly recommend to people especially if you don't mind planning out your quarters and again kind of doing a bit of legwork maybe five minutes every few months I'd look into the US bank cash plus card so this one is also slightly different than the freedom card in the discover it card in the sense that you don't actually have to go to the categories that they define you get to pick your own categories I'd recommend watching our other video on this and looking into the categories first just to see whether they make any sense for you if for someone who has a lot of spend in a specific category then I think it makes sense to get cards for those specific categories so for gas we've done another video on this you should be able to get 5% back on all of your transactions so the NRA card as well as the ducks card both gave you 5% back if instead you don't really spend that much money on gas but you spend a lot on groceries then I'd probably look into the blue cash everyday card as well as the everyday card by a max so both have kind of similar names but they kind of work very differently so one is based off membership or war points that everyday card and one is cash box a tableau cash everyday card if we're someone who doesn't really want to deal with a bunch of different stuff and you just want to get back I think the blue cash everyday card makes a bit more sense if you are someone who thinks that they're going to eventually travel then I think the everyday card makes more sense just because those points can be worth more in the future if you're someone who spends a lot of money on Amazon that I think the Amazon Prime card makes a lot of sense if you are someone who goes to Costco a lot then that one might make sense but for most people I typically don't recommend it especially if you run the numbers for myself it doesn't really make sense but it might make sense for you there was someone watching this and you're like hey this sounds pretty confusing I don't want to worry about quarters or using specific cards to specific places I just want one card that works really well if you do fall into this group then you're probably looking for a solid two percent back card and again I think for me you should be getting at least two percent back on all of your transactions if you're not then I think you're using the wrong cards there's a lot of different options here but I'm gonna focus on the two that I think are the most interesting that I like the best so the first one is a city double cash card and the second one is a paypal mastercard what both these cards you earn 2% back on all of your transactions of the city one you get the 1% back when you purchase stuff and 1% when you pay it off one common misconception is that you don't get the other 1% if you prepay your cards and again from my understanding from my research that's not true at all so again 2% for both of these cards the one big difference I think is the benefits that you get over the city double cash card just because city does have a lot of different benefits and for the paypal one you have no foreign transaction fees if you're someone who travels a lot than I think the PayPal card makes a lot of sense but then at the same time you might want to look into travel cards because you're probably going to get a lot of value there for the city benefits I think they are pretty underrated in terms of the side benefits you get as well as the other insurance benefits a lot of this depends on the cards and the specific benefits but I think for a lot of them you would argue that Chase American Express as well as City are probably going to be in the top categories for example if you do a lot of shopping then I think American Express is probably still on top in terms of return protection and stuff like that and then if you are someone who wants to do price protection and want to kind of match their prices especially if stuff goes down that I think cities probably on top right now the other benefit of the city double cash card is that you can product change it to a lot of other cards in the future if you start not to really care about 2% so I'm kind of in a situation where I kind of get at least 5% back on most of my transactions for dining I get about 4.5 – about 6 percent back so I'm not really looking at just 2% I want to get at least 5 to 10% I've mentioned this a lot in other videos but you really want to think about your outs so if you are a poker player or just someone who likes to kind of think about contingencies you don't really know what's going to be in the future so right now let's say you shop at Amazon a lot maybe in 5 or 10 or 20 years there's going to be a new service and you're not really gonna shop there anymore so for me back in the day Best Buy was a place I thought I would shop at a lot and now I barely buy stuff they're having cards where you can do product changes is going to be extremely valuable for this benefit in that way you can kind of optimize for yourself in the future when your own behavior and when your own habits and spending changes going back to 2% cards again there are a lot of different options right now your goal here is to find a card where you're not paying annual fee and again you're getting 2% back if you don't like city or if you don't like paypal then again go for those other cards they're not going to be bad for you the cards I would avoid though are the ones that give you less than 2% back in value or who just don't give you any value so there are some cards where they charge you an annual fee and the benefits don't really make it worthwhile something that a lot of my viewers are going to notice is that I talk about the same cards and the main reason is because they tend to be a lot better than the other options yes those other options exist but for a lot of different reasons they're just not as good so I hope that was helpful and let me know if you guys have any questions my question for you guys is what was your starter cards or how did you kind of start off let me know in the comments down below if you liked this video give it a thumbs up it really helps us out and if you know anyone else who benefit from what we just talked about feel free to share this video with them because it's probably going to help them out by the wise hope you guys liked it CSX time