Here Are the 3 Credit Cards Ramit Sethi Uses and Why They Might Be Right for You
KEY POINTS
- Ramit Sethi says he primarily uses a Fidelity 2% back card and the Chase Sapphire Reserve®.
- He also has The Platinum Card® from American Express, but that's just for the airport lounges.
- His approach to credit cards is to keep it simple by only using a couple of high-value cards.
Ramit Sethi has become one of the most trusted people for financial advice. Originally known for his 2009 book, I Will Teach You To Be Rich, he now has a successful podcast and a show on Netflix.
Some of the big names in personal finance are very against credit cards. Yes, I'm talking about Dave Ramsey. While Sethi is against credit card debt, he also recognizes that the best credit cards have valuable benefits. He has even shared the exact credit cards he uses and why he likes them.
1. Fidelity Rewards Visa Card for 2% back
The Fidelity® Rewards Visa Signature® Credit Card is one of the cards that Sethi says he uses regularly. It earns an unlimited 2% cash back on purchases and has no annual fee. You can deposit your rewards into any eligible Fidelity account, so you could invest your rewards through a Fidelity brokerage account.
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A 2% back card is always a good choice. That's typically the highest flat rate you can get with no limits or strings attached. If you spend $40,000 per year on your credit card, you'd earn $800 you could invest or add to your savings account.
2. Chase Sapphire Reserve® for travel rewards
Sethi also has a travel card that he likes, the Chase Sapphire Reserve®. It earns bonus rewards (3x to 10x points) in travel and dining categories, and its points are easy to use.
If you're looking for a travel credit card, this is a good time to apply for the Chase Sapphire Reserve®. It currently has a limited-time welcome offer of 60,000 bonus points for spending $4,000 in the first 3 months. You can redeem rewards at a value of $0.015 per point for Chase Travel bookings. If you do, 60,000 bonus points are worth $900 in travel.
On Chase's Secure Website.
= Best
= Excellent
= Good
= Fair = Poor
= Best
= Excellent
= Good
= Fair = PoorOn Chase's Secure Website.
Good/Excellent (670-850)
Intro APR
Purchases: N/A
Balance Transfers: N/A
Regular APR
22.49%-29.49% Variable
Rewards Earn 5x total points on flights and 10x total points on hotels and car rentals when you purchase travel through Chase Travel℠ immediately after the first $300 is spent on travel purchases annually. Earn 3x points on other travel and dining & 1 point per $1 spent on all other purchases.
5x points on flights and 10x points on hotels and car rentals through Chase Travel℠.
Annual Fee N/A
$550
Welcome Offer Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $900 toward travel when you redeem through Chase Travel℠.
60,000 bonus points
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All the perks we've come to expect from a top travel card, including a $300 annual travel credit, airport lounge access, and big bonuses on travel and dining. Points are transferable to airline and hotel partners or worth 50% more if you book through Chase Travel. The annual fee is hefty, but if you can use all its features, this card could be well worth the cost. Read Full Review
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- Travel credits
- Airport lounge access
- Travel and dining rewards
- Welcome offer
- Flexible travel points
- Annual fee
- Limited-time benefits
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- Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $900 toward travel when you redeem through Chase Travel℠.
- $300 Annual Travel Credit as reimbursement for travel purchases charged to your card each account anniversary year.
- Earn 5x total points on flights and 10x total points on hotels and car rentals when you purchase travel through Chase Travel℠ immediately after the first $300 is spent on travel purchases annually. Earn 3x points on other travel and dining & 1 point per $1 spent on all other purchases
- Get 50% more value when you redeem your points for travel through Chase Travel℠. For example, 60,000 points are worth $900 toward travel.
- 1:1 point transfer to leading airline and hotel loyalty programs
- Access to 1,300+ airport lounges worldwide after an easy, one-time enrollment in Priority Pass™ Select and up to $100 application fee credit every four years for Global Entry, NEXUS, or TSA PreCheck®
- Count on Trip Cancellation/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more.
- Member FDIC
3. Amex Platinum Card for the lounges
The Platinum Card® from American Express is the third card in Sethi's wallet, but it's not one he uses regularly. He calls it a pure luxury choice, and he has it because he likes Amex lounges.
This card includes complimentary access to American Express® Centurion Lounges, which are known for being much nicer than the typical airport lounge. Terms apply. You pay a lot for that privilege -- $695 per year, to be exact (see rates and fees). Whether that's worth it will depend on how much you fly and if you can use this card's other benefits.
On American Express' Secure Website.
Terms apply
= Best
= Excellent
= Good
= Fair = Poor
= Best
= Excellent
= Good
= Fair = PoorOn American Express' Secure Website.
Terms apply
Good/Excellent (670-850)
Intro APR
Purchases: n/a
Balance Transfers: n/a
Regular APR
See Pay Over Time APR
Rewards Earn 5X Membership Rewards® Points for flights booked directly with airlines or with American Express Travel up to $500,000 on these purchases per calendar year and earn 5X Membership Rewards® Points on prepaid hotels booked with American Express Travel. Earn 1X Membership Rewards® Points on other purchases. Terms and limitations apply.
1X-5X Membership Rewards® Points
Annual Fee
$695
Welcome Offer Earn 80,000 Membership Rewards® Points after you spend $8,000 on eligible purchases on your new Card in your first 6 months of Card Membership.
80,000 Membership Rewards® Points
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This luxury travel card has some of the most prestigious perks you'll find — access to over 1,400 airport lounges, elite status with Hilton and Marriott Bonvoy, and spending credits worth over $1,500 in value every year. Just be ready for the hefty annual fee, which can be offset in the first year with a welcome bonus worth $800 in points. Terms apply. Read Full Review
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- Big welcome offer
- Substantial spending credits
- Airport lounge access
- Hotel benefits
- Flexible travel points
- Annual fee
- Limited bonus categories
- Spending credits can be complicated to manage
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- Earn 80,000 Membership Rewards® Points after you spend $8,000 on eligible purchases on your new Card in your first 6 months of Card Membership. Apply and select your preferred metal Card design: classic Platinum, Platinum x Kehinde Wiley, or Platinum x Julie Mehretu.
- Earn 5X Membership Rewards® Points for flights booked directly with airlines or with American Express Travel up to $500,000 on these purchases per calendar year and earn 5X Membership Rewards® Points on prepaid hotels booked with American Express Travel.
- $200 Hotel Credit: Get up to $200 back in statement credits each year on prepaid Fine Hotels + Resorts® or The Hotel Collection bookings with American Express Travel when you pay with your Platinum Card®. The Hotel Collection requires a minimum two-night stay.
- $240 Digital Entertainment Credit: Get up to $20 back in statement credits each month on eligible purchases made with your Platinum Card® on one or more of the following: Disney+, a Disney Bundle, ESPN+, Hulu, The New York Times, Peacock, and The Wall Street Journal. Enrollment required.
- The American Express Global Lounge Collection® can provide an escape at the airport. With complimentary access to more than 1,400 airport lounges across 140 countries and counting, you have more airport lounge options than any other credit card issuer on the market. As of 03/2023.
- $155 Walmart+ Credit: Save on eligible delivery fees, shipping, and more with a Walmart+ membership. Use your Platinum Card® to pay for a monthly Walmart+ membership and get up to $12.95 plus applicable taxes back on one membership (excluding Plus Ups) each month.
- $200 Airline Fee Credit: Select one qualifying airline and then receive up to $200 in statement credits per calendar year when incidental fees are charged by the airline to your Platinum Card®.
- $200 Uber Cash: Enjoy Uber VIP status and up to $200 in Uber savings on rides or eats orders in the US annually. Uber Cash and Uber VIP status is available to Basic Card Member only. Terms Apply.
- $189 CLEAR® Plus Credit: CLEAR® Plus helps to get you to your gate faster at 50+ airports nationwide and get up to $189 back per calendar year on your Membership (subject to auto-renewal) when you use your Card. CLEARLanes are available at 100+ airports, stadiums, and entertainment venues.
- Receive either a $100 statement credit every 4 years for a Global Entry application fee or a statement credit up to $85 every 4.5 year period for TSA PreCheck® application fee for a 5-year plan only (through a TSA PreCheck® official enrollment provider), when charged to your Platinum Card®. Card Members approved for Global Entry will also receive access to TSA PreCheck at no additional cost.
- Shop Saks with Platinum: Get up to $100 in statement credits annually for purchases in Saks Fifth Avenue stores or at saks.com on your Platinum Card®. That's up to $50 in statement credits semi-annually. Enrollment required.
- Unlock access to exclusive reservations and special dining experiences with Global Dining Access by Resy when you add your Platinum Card® to your Resy profile.
- $695 annual fee.
- Terms Apply.
What to learn from Ramit Sethi's credit card choices
A key part of Sethi's philosophy is to strive for simplicity with your finances. Keep it simple, automate everything, and move on with your life.
His credit cards are a reflection of that. He only has two that he uses regularly, so he doesn't need to dig through a wallet full of cards and remember what all their bonus categories are. And he has automatic payments set up to save time every month.
The lesson here isn't to copy Sethi's credit card choices. They're all quality cards, although for most people, it doesn't make sense to spend an extra $695 per year just for one card's airport lounge access.
When you decide which credit cards to use, prioritize value and simplicity. Pick one or two credit cards with useful benefits. If you want to add more later because you enjoy mixing and matching different cards, that's fine. Some people treat credit cards as a fun hobby. But most just want to save some money without making their lives more difficult, and Sethi's approach is perfect for that.
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Our Research Expert
Lyle Daly is a freelance writer who has been covering personal finance since 2016.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.
For rates and fees for the The Platinum Card® from American Express, click here
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