Application Rules + Credit Card Tiers

Welcome to this module application rules and the car tier system. So I’m going to go in more detail about the tier system and all the tiers after three and what you can do. So here is what we are going to cover in this module. So the first thing I’m going to do is break down. What’s called a credit card base. Now it’s important that we, after we have established our first two tiers, that we really start thinking about long-term credit card usage and how we form an actual base of cards that we’ll be able to continue to use. So one of the big, big things, and I’m going into this is we obviously want to be able to manage our cash flow, but we really want to put ourselves at a place where we look at credit almost like, Hey, look, how can I maximize using cards for my benefit?

Then I’m going to get into the application rules. And I’m really just going to cover the application rules for the main credit card issuers. So some of your smaller banks and your retail banks, all that stuff, this isn’t really going to be relevant to them. Um, it’s not to say that those banks and those credit cards aren’t as valuable, but the big banks have essentially figured out really, really great, great perks and travel and all this good stuff. So I’m going to break down the big bank application rules. I’m going to get into tier three cards and up. So in a previous module, I broke down the credit card tier system, but I’m going to break down not only tier three cards, but examples of tier three cards. So that way you can be starting with building your solid credit card base, because you’re going to have to start with the tier three cards.

I’m also going to get into examples of tier four cards and then the overall criteria. So in a previous module, I only covered like high level how they worked, but I’m going to go into a little bit more detail about what tier cards applications look like. And then also some of the perks and things associated with it. Same thing with tier five cards, really some examples of tier five cards. And really when you start getting up to the tier five cards, those are like, what I call like those premium cards. Then we’re going to break down the tier six cards and what those look like. And then lastly, I’m going to, I’m going to show you how you can combine inquiries when you’re applying for these cards and really what that looks like. So this is a jam packed module when it cover a lot of ground in this module, and this is really gonna put you in a position.

So that way you can start really identifying which cards you should be doing and how to go out. I’ll go, I’ll go out in the platform. Cause I’ve already, I’ve already showed you in a previous one, how to do your research. So now, now that you’ve done your research, now we need to know, okay, sequentially, how do I execute this to ensure or significantly increase my chances of being approved? So what does a credit card base? Well, this is a good question. So the credit card base is just five to eight, tier three cards in above. And this is going to be the, the credit card base that you use to continue to build your credit. So the goal is to build this up to five to eight credit cards. And like I said before, we wanted to, we wanted to initially get our holy grail credit mix.

We wanted to have at least 5 revolving account and then 8 installment accounts. Now the revolving accounts that you established the, that we established those initially, just so we can start putting ourselves at a place where we can look good to the algorithm, but those aren’t going to be what we call long-term accounts. We want to stick with those accounts are really going to be good for 12 months, maybe 24 months at tops. And you they’re going to help you graduate to a set of tier three cards. So that way you can build up a base of tier three and tier four cards. So if it’s not that Indigo card and the Horizon Gold card that I suggested in module six, I mean, week six, then we really want to start sequentially replacing those accounts. Now, the other thing you want to understand too, what the credit card base, the accounts that are recommended like the, the, My Jewelers, Hunton Chase, New Coastal Direct, Ox Publishing, even the shop, those technically aren’t even credit cards.

They’re revolving lines of credit. And you understand what a revolving line of credit is. So it was technically not a credit card. So we want to get a car that’s going to report on all three bureaus so we can have consistent history with booting our credit. But that’s the goal with the, with the base is we wouldn’t have five to eight cards and again, five to eight revolving cards for the longterm. So when, and if you choose not to renew your memberships with those other accounts, you can just essentially just replace that with an actual revolving line of credit. That’s a credit card. Now what you want to do is find cards. Like I’m saying that you’ll never cancel and that will serve as the foundation of your credit. So you already kind of understand the purpose of this. We want to really have the five installment, I mean, five revolving accounts at the minimum and three installment accounts.

So this is why we want to find, and to really identify credit cards that are going to be really good for our base. And we want to ensure that as we’re using these cards, these are going to be cards that we can use all the time, especially when it relates to our variable expense account in our fixed bill account. So we’re going to have those variable expenses, whether it’s food, gas, whatever the case is. So we want to develop the habit to put the, put those, put those expenses on our credit cards. Then we, because we’re already, you’re paying the money anyways, and you get how the cashflow control system works. We can pay it off and then we can start being different from the points. Now, like I’m in that kind of leads me right into this particular point. So we’re going to be starting with those cash back cards on purpose because the cash back cards put us in a position to where we are going to be getting cash back on stuff that we were already going to be spending our money for or on any ways.

And there’s something called a Chase trifecta. Remember, excuse me, quick drink order. I remember I broke down Chase has a 5 and 24 rule. So we almost, we almost want to start with Chase when we’re doing our credit card base, because they’re gonna, they’re gonna historically give us the best points, the highest limits, the most, most rewards. So the Chase trifecta is the Chase Sapphire, Chase Sapphire, Chase Freedom, Chase Freedom, Chase Freedom on the limit and Chase Slate. You don’t have to get all three, but that’s a really solid three credit cards that offer the three different things. As a, as a base that’s, what’s considered the chase trifecta. Uh, then we want to look at hotel keeper card. So, Hey, look, if you’re at a place where you want to, or you travel, you want to look at hotel cards. Like I personally have a Marriott Bonvoy card because I use Marriott a lot and I got my, I have my Marriott card through Chase, but Chase also has those, those cards that are hotel or, or category specific, like for instance, hotels and or, uh, airlines. So again, that is going to take into account of having a really solid base. So maybe we have one, two, maybe three cashback cards, maybe one hotel card that we use because we’re going to be taking advantage of the perks and all the things that are associated with those cards. And then another one to look at it. And even considering a credit card base is the American Express every day card. Now this is a really solid card to have, and we’ll get into all of this, but we want to be looking at cards because of the base and because we’re going to be using these ongoing, we want to look at cards that we’re either going to be able to get, get more out of point, get more in points in rewards, then the annual fee associated with the card.

So when we’re building out our base, we want to look at cards that aren’t going to have the annual fee, because remember we have shifted our mindset. At this point, we understand that credit is a gain and we’re not going to get credit cards to go into debt. We’re leveraging these credit cards. So that way we can get cash back and travel and all this good stuff. Um, case in point, I took my girlfriend to Dubai. The, the total trip was like $10,000. Like what I would’ve paid. However, I got our, I got our plane tickets, which are plane tickets of that, um, of that trip was like $4,400, right? So luckily I had an immense amount of points and I was able to contribute. I was able to buy one of our tickets on point. So I was able to cut that in half because of, of, uh, of, of one of my cards.

And this is an example of how to leverage points out of leveraged credit, which I’ll get into, but that’s, that’s just helping you understand, as you start to think about this, you’re not going to be putting yourself in a position to where you want to be paying. You want to have a solid base of cards that you’ll just continue to use. Because again, the other side of this coin, remember I was breaking down the road of 800. We want to, we want to keep these cards and keep these accounts open for as long as possible. So this is the credit card base. This is what we’re looking for. This is how we want to be building up. This is what you want to be thinking about. So application rules, like I was already saying, these application rules are going to be for the big credit card issuers.

So this isn’t going to really go into the, and when I say the big credit card issuers, the credit card issuers that the credit card community, and those who use credit cards a lot have identified that these banks have the best rewards or the best points to the best category, specific cards in order for you to get the most money or the most bang for your buck. Again, we’re not going and using these credit cards to go into debt. We’re using it to really get points and rewards. So, um, one of the things, um, we’re going to be covering is going to be, it’s going to be with all of these banks right here. It’s going to be the Chase, Chase without fail is a card that you want to get. I wish I would’ve knew about all the rules about Chase, because I would have much more Chase cards and a half.

Then you’re going to, you’re going to almost already want to have, or get, put yourself in a position to have an American Express card. Bank of America also has some solid cards. Barclay has some solid cards, and then Citi cards. Now these cards are cards that offer points and rewards. Now I don’t have Discover on here. And I don’t have like other like Wells Fargo, not to say that you shouldn’t, but these cards, when you’re building up their credit card base are going to offer you what, what I found to be the most perks and the most points, whether you want to get cash back. And or if you wanna put yourself at a place where you want to get travel rewards or airline credits, all that kind of stuff. So I’m only going to cover the application rules with these. And then the other thing that I’ve found, um, I think Barclays is one of the cards.

I didn’t include it, but Barclays is a card that I’m going to cover as well. These are the cards as well, because they offer so much per point perks in points. These are the ones you really want to start with because those other cards, aren’t going to have these type of application rules. So you’re not going to run into any grid tape trying to apply for cards, because like maybe like a USA bank or Wells Fargo bank or smaller bank, they’re just going to be happy that you’re going to just, as long as you’ve got the credit criteria, they’re going to approve you for the card. But these ones will not. If you don’t follow these rules specifically. So we’re to go over Chase’s rules. So in a previous module, I talked about the 5 and 24 rule, but I’m going to rehash, Chase’s 2/30 plus 5 and 24 rules.

So that way you understand, as you’re building up your credit card base, my suggestion is starting with Chase cards. First, once you’ve done everything because Chase again, and they’re going to historically give the most perks and most benefits and give you the higher limit. So chase has number one, a rule that says you can apply with more than 2 applications in the 30 days. If you, if you do 2 applications at 30 days, more than that, you will be rejected. So anything past two applications will have an automatic rejection. So yeah, if you’ve identified that you want to get two Chase cards with three Chase cards or get to Chase trifecta, you cannot do all three credit cards at the same time because they will see it. And they’re going to automatically reject one wasted in inquiry now, or you wasted an approval. So, or you wasted the opportunity to come back and get that product.

So, number one, when we’re starting with Chase, you cannot apply them for more than 2 Chase cards in a 30 day period. The other thing is, is that when you are applying for these, the whole goal, let’s just say, I identify Chase Freedom and Chase Eliminate. I want to apply for both of those cards at the same time, on the same day. So that way I can maximize my hard pulls. So, but I’m, I do not want to apply for three. I can apply for two at the same time with no red tape. The other thing is is that if you have this kind of goes into the 5 and 24 rules, so the first two points is about the 2 and 30 rule. The second point is about the 5 and 24 rule. When I cover this for him and rehash it. If you’ve opened up more, if you opened up five or more new credit credit card accounts in the last 24 months, no matter what your score is, you will automatically be rejected.

How good your credit, no matter how good your credit score is. So this means if I have established five credit card accounts with five banks, they’re going to automatically decline me. Now, this does not account for the tier one and tier two card, the tier one cards that are covered. Well, really those tier two, tier one accounts, like My Jewelers in those accounts, this is only going to be relaying to those credit cards like the Indigo or the Horizon. If you got, if you’ve got one of those, what would you do? I suggest one. So, number one, you need to know, and you, you want to look at your credit, the report and see, do I have more than five open, specifically credit cards? It doesn’t have to do with loans. And all this stuff is only for credit cards in the last 24. And if you do, you will automatically be, be rejected.

Now, one way around the 5 and 24 rule is if you’re a business owner and you have a relationship with Chase, and you’ve been building a relationship with Chase, you can do a, a manual application at the bank and you, you want to really have a really good rapport and let that bank go to bat for you. In some scenarios, you can get past that in other scenarios, if you’ve been banking with Chase and you have a targeted offer, meaning they told you that you were approved pre-approved then that’s another way. But other than that, I wouldn’t, I wouldn’t do it because remember automated underwriting, there is a Chase algorithm they’re using that Chase algorithm. They’re going to pull your report and then say, look, we don’t like this. We’re going to automatically decline you. Then you wasted an inquiry. Um, this also is going to include any cards that were closed in the last 24 months, this as well.

And then if you are attached as an authorized user, that’s also going to count towards 5 and 24 limit. So all of these factors take into account for the chase 5 and 24 rules. So now that you know, so my suggestion is you’ve identified your research. You find two or three chase cards, two that you want to apply with, and you take this rule into account. The next rule is going to be with American Express. So American Express is a another solid option to build a credit card relationship with. They have put themselves American Express really is, is it is, it is, it is,

Is a, is a bank or credit card company that has phenomenal perks and phenomenal points. So the first thing is that all, every new member of American Express has a once in a lifetime bonus offer, which means because they’re trying to make you become a customer. They’re going to give you like the craziest offer. You know, there is maybe like a hundred thousand dollars points when you open up an account, if you hit a certain amount of spend or you do a certain amount of things. So you, you want to almost, when you’re looking at American Express, if you’ve never had a relationship with American Express, you almost want to wait to the ideal, ideal time to where the bonus offer that they’re giving you is like ridiculous, like 125,000 points. If you sign up and you do this and you hit the minimum spend.

So, but once you, once you become an American Express customer, you’re not going to get that offer again. So it’s almost like I’m not saying to wait to get an American Express card, but I would say, do your research and see what the historical offers have been. And you try to get yourself to get the biggest offer from an American Express, because you won’t see that offer ever again for the lifetime of you being with American Express. The other thing you want to understand is that if you have an American Express card before, and you’re trying to get that same offer, that then are now giving you, you will not be eligible for that offer again. So let’s just say I have an American Express Gold card, and I stopped using that gold card. And I try to re-establish that gold card. And they’re trying to, there’s a, there’s a, there’s a, um, an offer for the gold card specifically.

I’m not going to get that offer again. So they’re only going to say, Hey, look, if you already had that card before, you’re not getting it. The other thing about American Express is they have a 1 in 5 rule, which means you can only do one application every five days. Uh, and, or, um, and basically you can get approved for one credit card every five days. And I’ve actually put this to the test and it is true. I remember I was applying for, for different cards and I was, I really applied for two cards at the same day and then went back and got approved for another charge card. But this is only for credit cards. The other thing is they have a 2 and 90 day rule, which means you can only get approved for 2 credit cards every 90 days. So this means this has nothing to do with charge cards, but it has everything to do with credit cards because American Express has charged cards and American Express also has credit cards.

The difference between a charge card and the credit card is, a credit card has given you an extension of credit and you don’t necessarily have to pay it back, but you have a utilization, obviously you understand utilization, and you have to pay that back. However, with a charge card, you have the ability typically to charge as much, and you get an average amount that you typically charge, but you have to pay that you had to pay that in full by the statement date, right? So, but this rule, this 2 a 90 day rule only applies for their credit cards and not necessarily the charge cards. The other thing about American Express is that they’re only going to allow you to have five of their credit cards. Uh, it’s, it’s basically, it’s a five credit card max, up to 35,000 in available credit amongst all of those financial, I mean, amongst all of those cards, without them being, or making you subject to a financial review.

So this means if I have five cards and I’m not going to have $40,000 worth of revolving credit, they’re going to want to do a financial review and they probably will lock up your cards during that timeframe. So that’s another thing you want to do. So American Express is a real stingy prudent company. I’ve been dealing with American Express for the last year and a half to probably the last two, two and a half years, and to see how they work. They funny. Um, so you just, you knew that now this does not apply to charge cards though. So you can have unlimited charge cards, but you probably wouldn’t want to have unlimited charge cards. I personally have two charge cards, have a golden, a platinum charge card, and those are different tiers of charge cards. But again, you don’t necessarily need multiple charge cards.

You really, you really just want to have one or two solid cards, but I’m just breaking down how American Express works. So that way, you know, and you don’t get upset and you don’t go out and try to go all gung ho and then you were like, why didn’t I get approved is because you didn’t follow the unwritten rules of American Express. But now, you know, now let’s go ahead and hop in. There’s one other thing, if you’ve already had an American Express card, this is, I almost forgot this. So if you already, and this is what I, this is exactly what I did. So I became an authorized user on American Express card. First, then once I was an authorized user for about a year and a half, um, I was able to go out and get my own American Express card. And the thing about you being with American Express is once you already have a relationship or card with American Express, when you apply for a new card, they’re not going to run your they’re not going to charge.

They’re not going to count that as an inquiry. So that’s another perk of, of getting into the American Express family, because once you’re approved, they won’t pull another, do another hard pull as well. All right. So let’s go ahead and hop into Bank of America. So Bank of America is another solid bank. They have something called the 2-3-4 rule. And here’s how this works. You can have a max of 2 cards every two months, basically applying for, 2 Bank of America cards every two months, a max of 3 Bank of America cards every 12 months or one year. So you, number one, if anything, past that, they don’t like, Hey, what’s going on? And then every 3 cards, every 12 months, I’m going to, Hey, look, what’s going on. And then no more than a max of 4 Bank of America cards, every 24 or rolling 24 months.

So these are the rules associated with Bank of America that you need to know now, um, these, like I was saying, these are rolling months. So again, don’t try to apply for, for Bank of America cards in the same month. I don’t think you would do that because Bank of America doesn’t really have that many, uh, advantageous cards. But assuming you did want to do that, you would put yourself in a position to get declined, because this is another automatic automated underwriting rule that Bank of America has when you’re going out and getting those cards. And, um, like I said, this rule is only subject to Bank of America. So these cards, so this doesn’t mean two cards with Chase or two cards with American Express. It’s specifically with Bank of America. So it’s unique. So even if you got your Chase cards, you have your American Express cards and you want to go apply for Bank of America.

This isn’t going to say, Hey, look, max of two cards in the last two months of all the banks, it’s specific to Bank of America. Now there’s a Barclay card and Barclay card has some rules as well. They have some really nice perks, and that may explain how this works. So if you don’t currently have their car,d you are at a great place to go at and start the approval process. So this is a really, really good, good indication that potentially Barclay would be a good scenario. Assuming the Barclay targeted cards make sense for your particular credit card situation. Now they are unlike American Express. There’s no maximum amount of cards that you can have. So you can have as many Barclay cards as you want, but there’s a caveat to you having as many Barclay cards as you want. Now cover that. So if you’ve had one of their cards, but before, and you’re not using it, there’s a significantly higher chance that you’re going to get rejected.

Even though you can have no maximum amount of cards, because they’re like, Hey, this customer already has X, Y, Z card, and they’re not using it. Why are they trying to get us while they’re trying to get another card and still not use it? So the thing about Barclay is if you go and you apply and you have a Barclay card already, and you’re not using it, there’s a strong chance that they’re not going to approve you for the second Barclay card. However, you’re building up your base or you’re, you’re you understand that these relationships and how to scope our goals, uh, then you’ll know you’ll be good to go, but I’m just breaking this down. In case you, you referenced this video again, and you’re trying to boot up Barclay credit. Uh, another thing is that they generally pull TransUnion. So if your TransUnion reports looking good and you want to get another credit, you know, um, another Barclay card and you you’d like it, then they’re only going to typically pull that TransUnion report.

So that’s going to be really, really powerful. And then once, once you’re approved, this is another thing you need to know. You have 90 days to hit their minimum, spend to get the, the sign up bonus. So whatever they say that, Hey, look, I have a 90 day, you have 90 days to hit the spin. So that way you can get whatever the bonus is, and it varies per product. So I wanted to give it at least high-level. So that way you understood that about Barclays specifically. Now we have last Citi. Now Citi has, what’s called a 1 in 8 rule, and this means I can do 1 application every 8 days, and then additional applications will lead to an automatic rejection. So if I do more than one application in eight days, I will automatically be declined. Then they have a 2 in 65 rule, which means I can do 2 applications every 60 days, 65 days.

And then any subsequent applications will be rejected. Meaning I can’t do two Citi applications on the same day. If I do, they’re going to automatically decline me, but I can do two city applications every 65 days. So on day 66, if I have another city card and I’m going to apply for another city card after I’ve done two, I’m good to go. I’ve hit that algorithm. And I won’t have to worry about being the rejection. If I were you, I would just wait a little bit longer. But again, you need to understand this. Then they have a 6 and 6 rule. And what this means is you cannot havw, they don’t want to see that you have more than 6 hard inquiries in the last 6 months, months. So this is another thing about, about Citi, right? So you need to understand. So as you’re going through, when you’re doing your research, you really want to be looking at which one of these cars are going to fit your lifestyle.

The most based off the perks and the benefits and the things that they’re offering. Remember I broke down US Credit Card Guide the Wikipedia of credit cards and the kind of getting into the specifics of that card. But this is something that you need to know. Now I’ve already trained you, taught you how to get those inquiries removed in modules four, I mean, weeks, four weeks five. So that’s not really an issue, but again, this is not account holding inquiries. I don’t want to see that in the last six months. So if you have more than six or at six, you’re going to be declined. Um, um, and that just covered that. So the credit card tier system, so I’ve already broke this down, but again, you understand that the first two kit to two tiers are all about helping you build your foundation, right?

All about helping you do everything that should needed to do. Now, everything else, tier three, tier four, tier five, tier six is a gradual system we want to use and follow to get as much credit. So tier three, those are those beginner cards, tier four intermediate cards, tier five or premium cards and interior six are exclusive cards. So I’m going to cover all of these cards in really good detail. So we’ve already covered tier three, but I’m gonna go ahead and go into it one more time. So generally speaking with your tier three cards, and you’re looking at building your base, there’s not going to be any annual fee. These are the cards you want to start with when you’re building your base, because there’s no annual fee. Also, they’re going to give you 0% introductory offers, meaning you have no interest for 6 to 18 months, right?

Which is really, really good. Especially if you’re looking to do some repairs or whatever you have to do. These are going to be giving you cash or cash equivalent bonus offers limits. What I found are typically between 500 to 2,500. So again, these are like our beginner cards. So that’s, we’re not going to get as big of a limit. I’ve seen limits get as big as 5,000, but you just need to understand that that’s going to be the limit of between 500 to 2,500. Don’t be, don’t be upset about that. I’ve seen Chase cards, they’ll get approved for 5,000, because again, like I’m saying, chase historically gives the highest limit. And then you, you want to make sure you’re employed. So some examples of tier three cards are going to be like your Chase freedom. So again, remember I was breaking down, you want to go in almost our way.

Start with like a Chase Freedom unlimited, maybe a Chase Freedom or the Chase Slate. Any one of those three cards are going to be really, really solid cards. If not applying for the first two in the first 30 days and doing the third three, doing the third one. And you’ve got all three chase cards. I’m not telling you to get only the Chase cards, but I’m just telling you from experience. But I’ve found Chase is going to give you the highest limit with the better, with the best perks. Okay? Then you have like the Discover it card. That’s an example of a tier one card. That’s going to give you the cash back. You have the Bank of America cash rewards card, and another example, American Express, and then the city. So notice I just covered all of the application rules on how these cards work with the exception of discover.

However, I wouldn’t go and apply for a Discover card first because you’re going to waste an inquiry. And then you’re going to put yourself in a jam when it comes to those application rules that all the other banks have. So that’s why so important for you to do your research and identify the card that you think will be best for your situation. Again, we’re looking at cashback rewards and points that we can use because we’re, because again, we’re using these credit, we’re using these cards as cash. So we were already going to spend this cash anyway. So why not put on the card and get the rewards points? Because the bank account, your bank account is not going to give you those benefits. So tier four cards, what are they let’s get into it?

So our tier four cards are going to work this way. Generally speaking, they’re going to have an annual fee of between 100, $295. So you just need to understand that these, these tier three cards, I mean, tier four cards are going to have a fee. It just is what it is. That’s why it’s a higher tier card. Also. Uh, they are going to allow you to earn lots of points, so much more points and rewards than you would get on your tier three cards. And it’s the reason for the annual fee. Generally speaking, they’re going to have sign up bonuses of 500 to $700 in cash or cash like value. Meaning once I get the card and I use a card, essentially my bonus is going to pay for the fee and I’m still going to get all the other perks associated with using the card out after the signup bonus.

Another thing is, is that typically limits are going to be 5,000 plus. So with these tier four cards, they’re going to give you higher limits. But again, we don’t want to jump to tier four cards at the gate because the credit card company is going to, Hey, this guy doesn’t really have any credibility. Remember we want to, we want to, because it’s an automated system. We want to put ourselves in position to be approved. Then your credit score needs to be at least, uh, at least a 700 period point blank in the discussion. You don’t want to go try and apply and just super run in these cards and you don’t have at least a 700 credit score, right? So, and you want to at least have an income of at least 40,000 when you’re, when you’re doing your application. So this is, these are some of like the bare bones minimums for tier four card application requirements.

So if you have a higher score, your, your income can be lower. If you have a low or a higher income, it’s just going to help you with the limit that you’re going to be approved for. Now, examples of these are going to be your American Express Gold cards. So this was really one of my first tier four cards I received was the American Express Gold card. And had I known what I know now I would have applied for the Chase Sapphire card, but these are two examples of, of really solid, really, really solid tier four cards. Then we have these other ones, like a Alaska card, which is, I believe that’s through Bank of America, British airways. Then you have your American Express Delta sky miles card, which also have that card as well. Really, really solid card offers really good points. If you travel a lot with Delta, United.

And what you’ll find is that certain banks are going to go with certain credit card issuers. So what I found is that United is with, I want to say Chase and American Express is they, they just really American Express and Delta have a really great relationship. And then Jet Blue is with Barclays. So these are really good examples of tier three or tier four cards, I should say. Um, again, you’ll also notice that there are going to be like, you see these, these are more like your airline cards, but then you’ll see that these cards are more like your hotel cards. So you have, you have a choice here when you start getting into a tier four cards. Am I more of a, do I want to have more perks when it comes to hotels or do the have more perks when it comes to airlines?

Again, it’s up to you, but this is an example of a Hyatt card, a Marriott Bonvoy card, and then the Hilton Hilton, but this is the Marriott Bonvoy card through American express. So what, what they did was I have, I actually tried to apply for both of these and they were like, okay, you can get approved for both, but you’re not going to get the sign up bonus for both. So which one do you want? So I just stuck with my American. I just stuck with my Chase Chase card because I was approved for a $9,500 limit with chase with my Marriott Bonvoy card. And had I applied with American Express, it would have been stingy with the money. They probably gave me a $2,500 limit. So I went ahead and went with Chase. But again, this is an example of American Express or in, or tier four cards that are targeted to hotels or hotel or hotel chains.

So if you’re more of a Hyatt person, maybe go to the Hyatt hotel, if you’re more of a Marriott person Marriott, and then obviously Hilton Hilton. Now let’s talk about our tier five credit cards. So tier five credit cards, we’re getting up there. So typically this is the cream of the crop. This is the top of the top of the table for many people. So, and because they’re tier five cards, they’re going to have the one privately, the second highest annual fee. We’re looking at annual fees of 450 to $500 to get approved. Now your American Express cards may have annual fee is as high as 550. Um, but these cards are all about the perks, right? All about your, you know, you get things like airport lounges, access to priority passes. Like you’re going to get perks with these cards. They’re signup bonuses really aren’t any different than your tier four cards with the exception that you’re going to get additional perks with other things and really say, Hey, look, I’ve I’ve.

I have a really nice status card. Uh, you, you typically can get global entry. So if you do a lot of travel, um, in travel credit, these are really, really great. So with those travel credits, for instance, if you do get an American Express card, they’re going to give you like a 200 or $300 statement credit, which offsets the annual fee, that plus the points and the bonus that you’re going to use, that you would get, because you’re going to be spending the money anyways, really puts you in a great position to really offset that fee. And then again, you want to have a credit score of at least a 720, right? Your, your score needs to be at least 720 period. Don’t, don’t try to go over here and do these cards. This is one, we have a stronger income.

We, we have a really good handle on credit. We have a, a solid base, and now we’re just kinda looking to enhance our credit results. And then when we want our income to be at least 50,000 plus, I would say, uh, you want to have a higher income. I would say 60, 70,000, just because again, we’ve got that DTI and we want to make sure, and we already have a base. So we want to make sure we are using our credit responsibly. So examples of these tier five cards are going to be like your American Express Platinum card. So I actually have two of these. I have a personal and a business. I use the business the most, um, but it pays for itself. So like the trip I was talking about, I got those points on my American Express card, which is another thing.

So I have a total of five American Express cards between personal and business. I have one personal and for business American Express cards, but in terms of my points, the way American Express does, they put all of the points in one in one pool, so to speak. So all the points from all of your cards are going towards that one bit, but them on one place. And you can leverage those points to get the air time, airline tickets, hotels, all kinds of gift cards, all kinds of stuff. Um, Sapphire Reserve is another one. So I went heavy on American Express at first, but ended up with, if I knew what I knew now, I would went heavy on Chase, as opposed to American Express, but it was too late because I’d already done the things that I’ve already done. Then you’ve got your US Bank Altitude cards.

So these are really three solid examples of what we would call called tier five cards. And it just really depends. So if I’m, if I’m going back this, going back to this profile again, you just want to look at, okay. If I do a lot of traveling, all three of these cars are going to get me really very similar perks is this, which, which one is my preference, right? So going, I was starting over again. I’ll be looking to get that Chase Sapphire reserve, because we’re looking at, we’re going to be looking at an end limit on that Sapphire reserve of 25, $35,000. And that’s a revolving line of credit. Unlike with American Express, American Express is not going to give you a limit, but American Express is stingy. They’re going to but we want our money. So, and then they’ll they’ll even lower or, or prevent you from spinning your cards.

You pay him back. That’s not how, how Chase is going to work. So I’m going to speak it from experience, but all of these cards are going to be examples of really, really solid cards to use or get to when you get to that tier five spot. Um, then the other two or a Citi card, Citi has a, a high tier card and then a Ritz Carlton card as well. If you, if you said the risk cards. So again, typically these cards are when you have a stronger income. I think you need to be at least making six figures before you try to typically own one of these cards, only because if you’re not going to be taking advantage of the benefits, it could be six figures between you and your spouse, but you want to really be able to take advantage of the benefits when you use these cards, because the way you get the benefits is spending the money.

And if you don’t have the money to spend, there’s no need to get these cards because you’re going to be paying an annual fee for a card that you’re not getting any benefit out of. Now, that’s our tier five cards. Typically, that’s where the road ends. You get up to these tier five cards. You were at a great place when it comes to credit. It’s just, is this a matter of continuing to maximize it? The last tier are a tier six cards. And generally speaking, these tier six cards are going to have a annual fee of at least $2,500. The biggest, the most prestigious tier six card that everybody talks about is the American Express Centurion card and or the American Express Black card. So their annual fee is $2,500 plus us an initiation fee of $7,500. And you don’t get to apply. They choose you.

And they said, Hey, look, we’ve chosen you to become a part of our American Express, uh, the Centurion family. And this is the initiation fee. And, um, Chase has another card, very similar, and it’s, uh, only for like ultra wealthy people. So they want you to have at least $10 million in assets, under management for JP Morgan is the JP Morgan reserve card. And again, both of these cards are invitation only. So you, you, you, you really going to be doing a lot of spend and have a lot of money in order to get through these cards. And really in my opinion, that is status symbols for the wealthy or celebrities. And you want to have an income of at least $500,000 minimum because you’re going to have to spend a lot of money in order to get to these cards. And it’s not necessarily just the income, it’s the amount of money you have to spend in order to say, Hey, look, this card is justifiable for the amount of fees I’m paying.

Because again, that fee is still going to come with a lot of perks. So like I was saying before, we’ve got our American Express Platinum, not even our platinum American Express Black card or our JP Morgan Palladium card. Both of these cards are very, very prestigious. You have to be Chase private client in order to get the JP Palladium card. And again, it’s invitation only. I am doing my best to try and get that American Express black card on the business side. I’m not definitely need it the personal side, but on the business side, they do have a business American Express Platinum card. I mean, black card, but you’ve gotta be able to do a lot of expenses on spinning to get there. Now, last thing I want to cover is how we can combine inquiries. So we’ve covered quite a bit of ground. So if you apply for multiple cards in this, at the same bank on the same day, generally speaking, that bank is going to then count that as one inquiry, however, if you apply for cards, um, that are at different, if you apply for cards with the same bank on different days, then it’s going to equal multiple inquiries, right?

So what am, what am I saying? You want to almost make sure you apply for, if you’re applying for the cards and you follow the rules, you apply for the card at the same time with the same bank, so you can increase one inquiry. Now, the other thing is, if you apply for multiple cards at different banks, even on the same day, you’re still going to get multiple inquiries because it’s two different banks or multiple banks. So let me give you an example of when you’re going through this process, how to think about combining increase. So, um, SD means same day MD means multiple days. So let’s just say I do a Chase and American Express on the same day or multiple days, they’re still an equal to increase, or let’s just say I do a Chase, Bank of America, and American Express, same day or multiple days.

I’m still going to get three inquiries because it’s three different banks. Let’s just say I do a Chase set, Chase Freedom, and a Chase unlimited on the same day or Chase Freedom and a Chase. Yeah, Chase Freedom, Chase unlimited on the same day, I’m only going to get one inquiry because I’m applying in the same day. Remember we’re not going to do three Chase cards. Cause we would get, will be declined if we do two Chase cards and one American Express card on the same day, even though it’s three cards, I’m only going to get approved. Um, I’m only gonna get two inquiries because Chase is going to include both cards as one inquiry, as opposed to American express is a totally separate financial institution. Then if I do two chase cards, which this is a key thing, even if I do two chase cards, if I do them on multiple days, it’s going to be multiple inquiries. So with this last piece of wisdom, when you’re identifying your cards and I’ll cover this in how to fill out credit cards for app for, um, how to fill out credit card applications, we want to identify the cards wouldn’t apply for a first, then follow the rules and then put ourselves in position to, to just get approved and then minimize our inquiries. Okay. So this concludes this module. I will see you in the next one.