The BEST No Annual Fee Cashback Setup | Better Than A Premium Credit Card Setup?
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- เผยแพร่เมื่อ 19 มิ.ย. 2024
- The Wells Fargo Autograph card has the potential to be a primary staple in cash back setups due to its multiple 3X categories, and when combined with other no annual fee cash back cards, these credit cards setups have the potential to be very rewarding, but how do they stack up against a premium credit card setup?
In this video, I want to introduce what I think is the best no annual fee cashback setup, and then I’m going to compare this setup to my own credit card setup that is primarily made up of high annual fee credit cards using my own real expense report from the past 6 months to see which one is better.
The no annual fee cash back setup that I’m referring to consists of 4 cards: the Citi Custom Cash card, the Wells Fargo Autograph card, the American Express Blue Cash Everyday card, and the Wells Fargo Active Cash card.
The Citi Custom Cash card offers 5X points on your chosen category, including staple categories like restaurants, groceries, gas, travel, and transit, as well as many others. The Wells Fargo Autograph card offers 3X on restaurants, travel and transit, gas, popular streaming services, and phone plans. The AMEX Blue Cash Everyday card offers 3% back on groceries, up to $6,000 per year, as well as 2% back on gas. Finally, the Wells Fargo Active Cash card offers 2% cash back on everything.
Watch the video to see my real expense report from the last six months and how this setup compares to my current setup, which consists of the American Express Morgan Stanley Platinum, AMEX Gold card, Bank of America Premium Rewards Elite, and Bank of America Customized Cash cards.
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Chapters:
00:00 Intro
00:43 Best No-Annual-Fee Setup
02:00 About Rotating Category Cards
02:55 You Need A Budget (YNAB)
03:47 My Average Expenses per Category
04:30 Dividing Expenses for the NAF Setup
05:44 Cashback Received from NAF Setup
06:33 Cashback Received from my Setup
08:08 Comparing Rewards from Both Setups
09:46 Outro
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Note: This description contains a referral link, meaning that I may earn a commission if you click through this link and buy the product mentioned.
Disclaimer: I am not a financial advisor, accountant, or lawyer, and as such, I do not provide financial, tax, or legal advice. This video, and any ideas presented in it, are opinions and are provided for entertainment purposes only. Please do your own research and consult your own financial, tax, or legal professional for specific advice.
#bestcashbacksetup, #ynab, #bestcreditcards2022
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What do you think of this No-Annual-Fee Cashback Setup? Let me know in the comments below 👇!
Does the autograph card earn 3% cash back on Costco gas stations?
@@isao_the_2nd It should, but I don't have WF so I can't really confirm this. Depends on how WF codes the transaction.
Really comprehensive comparison thank you so much!
No problem!
! These type of setup videos are much more effective when there's real life expenses as an example. Thanks for the breakdown! Nothing beats the simplicity of a cashback setup
Totally agree! I think cash back setups are so much stronger now with these new and improved no annual fee cards that are coming out. It's a very exciting time to be looking at credit cards! Glad you enjoyed the video!
@@TheCreditFrog the SoFi credit card's better than the active cash because of the lack of foreign transaction fees, higher cell phone protection, the list goes on.
@@isao_the_2nd You're totally right Jorge! The SoFi card definitely has a lot more benefits. Thanks for pointing that out!
Excellent video Stan. At face value, the $42 seems minimal, but once that $42 is transferred, it’s be valued quite a bit more. The no annual fee cash back setup definitely holds its ground for sure 👍🏾
Thanks CJ! Yeah, I was also pretty impressed how close the no annual fee setup was compared to my own personal setup!
Stan, these data based videos are super awesome. I love the personal comparison as well. I think the wild card is "How much do you value those Platinum Card Perks". One day, your flight will get delayed and you will either be sitting in the common area with the peasants or like a King in the Centurion Lounge or Delta Sky Club! On the other hand, if you dont travel, then the cash back may seem like a great idea! Love the channel!
Thanks so much Luke! Yeah, you’re totally right that premium card perks can make or break your day, especially the travel cards! The perks and benefits definitely cannot be underestimated! I’m glad I made this comparison, just so I could really make sure that my setup was the right one for me, especially with all these awesome no annual fee cards coming out. Glad you enjoyed the video!
Great video/ending comparison!
Thank you Nicole!
I like the complexity. Very good examples. Af cards for win 😈
Thanks Zeus! For sure - if you know how to use AF credit cards, they will almost always work in your favor!
I have both the Discover It and the Chase FF. I look at those cards as auxiliary options for elevated cash back options. I do not depend on getting 5% back on them as much as looking at it as a perk. Discover is one of the best banks to deal with and the FF has the 3x dining and drugstore options too.
That's great that you have both so you can capitalize on those rotating categories. Yeah, as long as you have a strategy that works for you, and you don't mind keeping track of the categories every quarter, the CFF and Discover It are great cards to maximize 5% categories!
Couldn't have come up with a better cash back setup myself! I'm not a huge fan of rotating category cards. I like to know exactly where I'm going to earn rewards every quarter and don't like switching my cards around if I don't have to. That may change down the line, but for now that's what I prefer. Overall, I think premium cards are worth it if you like to keep track of all of the credits and everything like that... but to me, that's part of the fun!! Great vid Stan.
Thanks Spencer! Yeah, having to deal with all the rotating categories seems easy at first, but after a few years, I dunno, I guess I lost my patience for it haha! There are plenty of premium cards that are great so it’s all about crafting the right setup to fit your lifestyle. Good to hear from you! Hope you get to enjoy the weekend bro!
@@TheCreditFrog I agree with you! Maybe it’s my OCD but I love keeping things in order, even my credit cards! You’re killing it these days man, keep it up!
I am building the same no annual-fee credit combo you have but without the American express blue cash everyday card because I can use the Citi custom cash card for groceries. The funny part is that I discovered this combo before I watched your video.
That sounds like a pretty great combo to me! The Citi Custom Cash is definitely a very powerful card. Looks like great minds think alike 😄!!
Amazing video, same free setup I’ve been thinking about going for and provided clarification of comparing to a higher end setup. Only thing I would’ve wished you compared was the annual fee when you no longer factor in introductory bonuses
Thanks Gio! Yeah, after year 1, this is where it’s important to look at how the cards earn long-term. I’ll be sure to add that next time around!
Wow $152 is not a huge difference when you compare the difference in annual fees. However again when you add those credits to get the effective fees, you are definitely able to get a lot of value from your setup despite the fees. Still coming out ahead by $42 + the upside (transferring to travel partners, etc), definitely means you are getting significantly more value from your setup. The more I increase my time in the credit card game, I'm definitely looking to add more annual fee cards that can give me a lot of value in the future. Still though, if you are someone that is focusing on no-annual fee cards, then this is a fantastic option! Great video as always Stan!
Thanks Matt! Yeah, this was an eye-opening exercise for me as well, and hopefully you can do the same with your budget to see which combination works best for you! It’s also nice that you’re at the beginning so you can really plan out your trajectory moving forward. Looking forward to seeing what’s your come in your setup!
I'm surprised you didn't slide in the capital one savor one card
That card would definitely be a strong card to add as well in place of the BCE for extra 3X categories and adding the entertainment 3X as well. Thanks for the suggestion William!
So agree with you. The rotating category don’t make sense and you shouldn’t count them as 5%. This is why I abounded the Freedom card setup.
Yup! Rotating categories are not my jam. Glad you agree!
You are so right and on point with all the no annual fee cards and I'm trying to complete this list now. I have the Amex Blue Everyday, WF Propel, Capitalone Savorone, Amex Gold. Next year I'm going after that Citi Custom Cash and WF Active Cash as my catch all. WF Propel sent out letters to card holders saying that travel and purchase protections are going away so for travel I will still use WF Propel except for flight, I will use Amex Gold for 3x points and travel and purchase protections instead. Your set up is the best I've seen and I've been headed in that direction? Myself I guess great minds think alike. I also agree with you on those rotating categories that's why I don't have any does make sense to me.....great video
Thanks Anthony! There are so many good no annual fee card options now that even I'm tempted to make my own setup!! It's definitely much simpler than the annual fee setups, and you don't have to worry about all the credits! Glad I'm not the only one who isn't a fan of rotating category cards. And yes, great minds do think alike 💯!!
I’m tempted to PC or downgrade my Venture X if I can find a decent catch all card with no foreign currency fees
I use the Penfed 2% Power Cash card for my catch all. It has no foreign transaction fee when I'm traveling.
The PayPal Cashback Mastercard as my catch all for when I'm not traveling 2% on everything and 3% on all PayPal payments.
I'm looking into the Alliant 2.5% card next, I believe that on has no foreign transaction
FIRST! And I have to say, I love the new Autograph card.
You are first Anthony! 🥇! And yes, that Autograph card is pretty sweet 👍👍!!
Give you “credit” for the unpopular opinion, but very valid one, on rotating category cards
Thanks Anand! Yeah, rotating category cards can bring a lot of value if you take the time to be ultra efficient with it, and certainly a lot of people do! That strategy just isn't for me personally. I like having stable multipliers on my cards for simplicity.
I love your analysis. But I like the simplicity of my 2% cash back Fidelity card that goes straight to my brokerage account (didn't do anything with my cash back before), Chase Freedom Flex for 3% at restaurants, and Capital One Quicksilver for its no foreign transaction fees and 1.5% cash back.
Simplicity is key! There are certainly tons of options to maximize a credit card setup, but your setup of 3 cards is pretty solid so definitely use what works for you! 💪
Very interesting video. I would make 2 changes on the no annual fee line up for better results in your situation. Replace AMEX with BOA custom cash to get one 5.25 percent category. Gas is already covered by WF. Replace WF active cash with BOA unlimited cash rewards for a 2.62 percent catch all.
I completely agree with you! For those who have Platinum Honors, this is definitely the way! But that's not accessible to everybody so if there was no status with BofA, I think this setup would a nice alternative.
Agree 100% on rotating cards, I hate them! I just want simplicity and little
Thought.
I know, right?! Everyone seems to love them, but I’m glad I’m not the only one 👍
@@TheCreditFrog Amen!! You have a new subscriber by the way, keep up the good work!
Thanks so much! Appreciate your support!
Great to see how much no annual fees can old their own! Question: Can one get a retention offer on the MS Platinum card even if you get the engagement bonus? hmm
I know, right? Yeah, so for the MS Platinum. I plan on trying to get a retention offer after year 1 and will definitely report my findings in a future video! I'll also keep an eye out for the engagement bonus in month 13 and troubleshoot that as well if I have to so I can hopefully save time for others who have also recently opened the card!
@@TheCreditFrog Ah thank you good sir! That would be much appreciated - definitely looking forward to a video like that!
Discover and Chase freedom don’t usually do the same categories at the same time so you can have 5% back for half the year if you use both of them. 5% is better than 3% for a little bit of work. Also Citi custom Cash has a $500 cap per month for %5 then it is 1%.
Definitely true Chris! I think the issue is though that the 5% categories, particularly with Chase can be unpredictable so it’s hard to plan a setup around multipliers that change throughout the year.
Your videos are well thought out and you do a good job presenting the information, I just hate that elevator music you use in the background😂
Thanks for the feedback! Yeah, I need to either be more thoughtful with my music choices or maybe turn down the volume even more or just take music out completely. Do you have a specific preference regarding the music in my videos?
@@TheCreditFrog I recommend no music, especially when going over number details. That being said, in theory you would need to take out the 'pop' sounds when an element shows up on screen, but that's okay to leave in I would say
Great content, awesome detailed video 😁🔥😁🔥😁
@@LalitDevraj Thanks for the feedback Lalit! I’ve been moving away from music in my more recent videos so we’ll see how that turns out. I’ll probably keep the sound effects since it does break up the monotony of me just talking, especially if it’s very number heavy.
Awesome video man! What you think about the Venmo Credit Card? Can you review it please?
Thanks Luis! I think the Venmo Credit Card is a fantastic card with great multipliers and can definitely fit in a cash back setup. I did a short review of it in my Costco video earlier this year: th-cam.com/video/_-LEGoOAPQ0/w-d-xo.html
@@TheCreditFrog Thank you so much I’m going to watch it now!!
I'm also going for the Morgan Stanley Platinum engagement bonus, but I think it's a bit misleading because having $30,000 in the crappy platform that is Morgan Stanley needs to be considered as an opportunity cost. I would rather have that money sitting in a bank account or in a real estate deal or invested with Schwab (in that order).
My annual fees are waived but the $695 engagement bonus you get from Morgan Stanley there's definitely an opportunity cost to it.
Yeah, now that interest rates are up, there definitely is a much higher opportunity cost lost (3X since I made that video). Still worth it in my opinion to avoid the annual fee, but if your annual fees are waived, it may be worth considering getting the card for the SUB at the very least, and then consider your options at the end of the first year and see what the interest rates are at that time.
Noticed the 5X next to Restaurants for the WF Autograph....was that a typo? The math checks out, though so nbd.
Probably, WF Autograph should be 3X restaurants. If it was a typo, my mistake, must have hit the wrong button, haha!
If you include Bank of America customized cash in the premium setup, then I think it's only fair to also include it in the no annual fee setup since it has no annual fee (assuming platinum honors tier). I would swap wells fargo active cash with BoA Unlimited cash back. Also, maybe swap AMEX with US Bank Cash+
Those are both good options as well! I always think BofA is a good move, it don’t always include it since not everyone has the PH tier. US Bank Cash+ has some unique multipliers as well so would be a great addition 👍!
@@TheCreditFrog Also, this is a very small optimization, but I would use BoA unlimited cashback on my rent, which has a 2.5% processing fee. My rent is about $1500, so I get back $2.86 monthly. YMMV of course.
Hear me out Stan. Bank of America Premium Elite + BofA Custom Cash Personal + BofA Custom Cash Business + Amex Platinum. What do you think?
I think that would be a great setup! You've got pretty much all categories covered plus all the statement credit and benefit upside with the Amex Platinum! Of course, this would be best with Platinum or Platinum Honors. In fact, I have and use all of those cards!! It may be a great credit card setup .. but it's not the best no-annual-fee cash-back setup.
The use of annual fee/multiple card setups seems tedious as fuck to use optimally. I'm not a fan of thinking or holding a bunch of cards, so I was only on the Wells Fargo Active Cash for a while, but I recently caved and got the Wells Fargo Autograph card to get a little more back on gas and dining. Cool analysis though!
Yeah it depends how many cards you have. 2-4 usually isn’t that bad, but after that, it certainly can get a little tedious. I think those 2 cards for you is going to make a great no annual fee cash back setup! And it’s simple too so thats definitely a plus 👍!
Great video. I am 20 and opened up a Amex everyday card. I also have the discover it card. I am looking to get venture one rewards one card due to me going out of the country soon; Heat other card for the 4th would be good to round out? Thank you
Thanks Schubby! As you know, I'm a fan of the Wells Fargo Autograph card so that would be a nice one round out your setup! You also could use a no annual fee 2% card like the SoFi card which also has no foreign transaction fees!
@@TheCreditFrogI thought venture one rewards is a travel card? I like that one better, and my parents say to not get the Wells Fargo in their opinion due to their bad business history.
@@Jes1919 Venture One rewards is a travel card, although, it's only good if you book travel on the Capital One Portal, otherwise its just 1.25X on everything else. It does have no foreign transaction fees so that's also a plus. Yeah, if you don't feel comfortable with WF, you can choose another bank!
@@TheCreditFrog do you like chase flex for the forth spot, or as you said a soft, or a cit custom? Thanks
@@Jes1919 I think the Citi Custom Cash would be the best card fourth card for your setup. The Chase FF would be good to, but I think you get more control of the 5% category with the Citi card.
Never understand why the SoFi credit card never gets any love. 2% back on everything.
It’s just not from a major bank! It’s a solid 2% cash back card if you bank with SoFi!
@@TheCreditFrog great point. I do bank with them and that’s the only way to get that card.
Blue Amex Preferred is 6x back on groceries I believe
Yes! You are right!