You can earn close to 4% cash back on your daily purchases instead of the 1% to 1.5% you get with most credit cards. Depending on how much you spend each year, this can easily turn into $1,000 for your Disney vacation. This 3 card strategy (with no annual fees) is a great way to save for Disney vacations.
Step 1) Discover it Cash Card
Best Feature: Double cash back in year one.
The first card you want to get is the Discover it Cash Card. It earns 5% cash back in rotating bonus categories each quarter and 1% on everything else. Discover doubles all your cash back at the end of your first year. So, you’ll essentially be earning 10% cash back in the bonus categories and 2% on everything else in year one.
If you use our referral link, you get a $50 statement after your first purchase.
Step 2) Chase Freedom
Best Feature: 5% cash back in rotating categories.
The second card you’ll want to get is the Chase Freedom. It also earns 5% cash back in rotating bonus categories. The Chase Freedom complements the bonus categories of the Discover it Cash card. For example, you could be getting 5% cash back at restaurants with your Discover card and 5% back at gas stations with your Chase Freedom.
You’ll also earn a $150 sign up bonus after spending $500 in the first three months.
Step 3) Citi Double Cash
Best Feature: 2% cash back on all purchases.
After you’ve finished year one with the Discover it Cash Card and received your matched cash back, you’ll want to get the Citi Double Cash. It has no annual fee and earns 2% cash back on all purchases. You’ll use this card for all the purchases that aren’t bonuses with either the Discover it Cash or Chase Freedom.
It also comes with a $150 sign up bonus after spending $500 in the first three months.
Ultimate Cash Back Credit Card Strategy
There’s no perfect credit card, but you can build a nearly perfect wallet. The Citi Double Cash gives you a minimum earning rate of 2% on all of your purchases. When you add the 5% bonus categories of the Chase Freedom and Discover it Cash, you’re likely to earn close to 4% overall.