How to CLIMB the CREDIT CARD Ladder with BAD CREDIT (2025)

Denied. That's what the letter said, again. I still remember staring at that word, feeling like I never escaped bad credit. Getting credit cards with bad credit is tough. The options are limited, the fees are ridiculous, and the chances of approval, slim to none. But here's the thing, it doesn't have to stay that way. I know because I've been there. I went from feeling stuck to holding over 40 credit cards, 6 figures in available credit, and becoming a points millionaire. Which by the way means that I've earned enough points to cover tens of thousands of dollars in free travel. In today's video, I'm going to share the exact steps that I took to climb the credit card ladder, from struggling with basic cards to accessing premium rewards, perks, and higher limits. And here's the best part, I've helped thousands of people repair their credit, build their profiles, and hit scores over 700. These strategies can work for you too, no matter where you're starting or how stuck you feel right now. So why bother climbing the credit card ladder at all? Building a strong credit profile isn't just nice to have, it's essential. Did you know that a third of Americans are dealing with poor credit? If your score is below 680, your options shrink and everything gets more expensive. Interest rates, insurance, even renting a home. When you start moving up the ranks, you get better cards, lower rates, and more flexibility. Plus with the right cards, you can save money on everyday spending like rent, groceries, and even travel. Think of the credit card journey like a ladder with six steps. Zero, starter, building, preferred, premium, and elite. At each level, you get access to better cards. In this video, we're going tier by tier. I show you the scores that you need to get in, examples of the best cards in that tier, and the exact steps to climb onto the next ladder. Before you start climbing, you need to know where you're starting. And that begins with understanding your credit score. This is a three-digit number ranging from 300 to 850 that determines whether or not you get approved or denied. You want to focus on the two most important factors, your payment history and the amount owed. These two alone account for two-thirds of your score. Let's start with payment history. It's simple. Pay every bill on time. Credit cards, loans, even utilities. Late payments can drop your score by over 100 points and stay on your record for seven years. So if you can, set up auto pay today. Next is the amount owed. In other terms, debt. Lenders want to see that you're not maxing out your cards. The sweet spot is to keep your usage between 1% to 6%. But I usually recommend under 10% just for simplicity. For example, if you have a $1,000 limit, aim to use less than $100 at a time. Now here's a pro tip. Pay down your balance before the statement closes to keep your utilization low when it's reported to the credit bureaus. Your statement cycle is usually around 30 days and whenever it closes, that information gets reported to the credit bureaus. And your credit score will reflect this for the next 30 days. If you're just paying off your credit card balance whenever the payment is due, you're not allowing your credit score to be as high as it should be. Now that you know how credit scores work and the two biggest factors, let's talk about where to start if your score is below 580. This is what I call tier zero. While it might feel like you're at rock bottom, this is also where you have the most room to grow. For instance, this community member increased their score by 100 points in a matter of a few months. With the right steps, you can start climbing the ladder faster than you might think. So if your score is under 580, I know exactly how overwhelming it can feel. I've been there myself, frustrated and unaware of how to move forward. It feels like every denial is another slap in the face. But here's the truth. Being in tier zero isn't the end of the road. It's your chance to reset and start fresh. The first step out of this level is to stop applying for new credit cards. I know it's tempting to try your luck, but approvals at this level are rare and denials can hurt your score even more. You most likely already built a credit profile, so instead just focus on cleaning it up. Next, if you're carrying credit card debt, you have to prioritize paying it down. High balances tank your credit score because they increase your utilization. I know it's easier said than done, but even small payments make a difference. If you're feeling stretched, consider options like a debt consolidation loan to simplify payments and reduce interest. The reason why this works is because credit card debt weighs heavier on your credit score than loans due to its changing nature. Now, if you are a loyal customer with that credit card issuer, you can actually call them up and negotiate your interest rate down so that it does not have to cost you more. Another simple thing that you can do to reduce your utilization is also request for a credit limit increase. This would help your score without having to pay more. The next thing that you can do is use your network. You want to become an authorized user on someone else's account, so here's how it works. If you have a family member or a friend that has a card with a strong credit history, high limit, and no late payments, ask them to add you. You won't even need to use the card. Just being added to their account can give your score a quick boost. If you have no one that can do this for you, another route is by purchasing trade lines. This is a pay-for-play strategy that involves being added to a stranger's credit account for a fee. You want to look for accounts that have been aged for at least five years or more and with a high limit to have the best impact on your credit. Also, keep in mind that this is a short-term strategy and this trade line will be removed after one to two months after the account has been posted. And finally, you want to look into credit repair. Check your reports for errors like outdated or inaccurate accounts. Under the Fair Credit Reporting Act, you can dispute these with the credit bureaus and if they can't verify the information, it has to be removed. Even one deletion could be the difference between a denial or an approval. You will get a higher success rate if you do it yourself since you're going to be mailing out the letters directly from your home address. As a shameless plug, I do have an AI-powered DIY credit repair software called Credit Rehab Pro. You can repair your credit seamlessly just with a few clicks and it will create the letters for you. If you want to learn more, the link will be down in the description where you can scan this QR code. As you work repairing your credit, consider adding a credit builder loan or secure installment loan. Most of these work by financing a purchase or just taking out a loan against your own money. There are several options out there but a few I would recommend would be Kobo, CreditStrong, and Self. These give you a predictable way to diversify your credit mix which can also improve your score. Now, I would only consider these if you don't have an active loan. If you already have a student loan, auto loan, or a mortgage, then these credit builder loans are not going to help. Your goal in tier zero is restricting your credit profile, reduce debt, and clean up any negatives. With consistent work, you can climb into tier one anywhere between one to six months. Now, let's move up to tier one. These are for those who are starting their credit journey. Your credit score does not matter much here. This tier is all about getting your first card and gaining trust with lenders. At this level, secure cards are your best friend. These cards require a refundable deposit typically between $200 to $1,000 which acts as your credit limit. It's not glamorous but it's an important first step. When choosing a secure card, make sure it offers the ability to graduate to a traditional credit card later. This way, your progress stays seamless. Secure cards are training wheels for you to get used to a credit card and how to use it properly like using the card and paying off the balance in full by the due date, being aware of the credit limit, and just to develop good habits. So here are cards that has no annual fee and can grow with you. The Discover it Secured, Bank of America Bank AmeriCard Secured, TD Cash Secured, US Bank Secured, and the Navy Federal and Reward Secure Card, if you can get in. Now let's talk about unsecured credit cards, the kind that most people think about when they hear credit card. Unlike secure cards, these won't require deposit. Instead, the lender extends you a credit limit and whatever you spend, you would just have to pay back. If you're just starting out or rebuilding credit, the best place to look for your first unsecured card is your current bank or credit union because you already built a relationship with them. Whether it is through direct deposits and checking account or savings, this shows lenders how you manage your money even if you don't have a credit score yet. This gives you an edge when applying. For example, the Chase Freedom Rise is designed for new credit users. If you maintain a Chase checking account with a balance of at least $250, it increases your chances of approval. It's also a great entry point into the Chase ecosystem, which offers some of the best credit cards up the ladder. Another beginner friendly lender that I would recommend would be Capital One. They offer cards like the Quick Silver One Rewards and the Platinum Mastercard, which are ideal for new credit users. These cards provide simple rewards and straightforward terms, making them a solid starting point. You can also explore student credit cards, even if you're not a student because they never check. These cards are designed for beginners, so you should expect low credit limits and simple rewards. One thing to avoid is applying for too many cards at once. Each application adds a hard inquiry to your credit port, which can lower your score and make you look desperate to lenders. When I was new to credit, I was so excited that I'd apply for every card that caught my eye. I didn't realize that the impact of these applications would have. Before I knew it, my score had taken a huge hit and lenders just started denying me outright because I looked so desperate for new credit. It was a hard lesson, but here's what I learned. You have to pace yourself. You got to focus on quality over quantity. This way, you can protect your score and set yourself for higher approval odds. Instead, you want to take advantage of pre-qualification tools. These allow you to check your approval odds without impacting your credit score. Most of the big lenders offer this like America Express, Bank of America, Capital One, Chase, Citi, and Discover. While it's not 100% guaranteed, they give you a good idea of whether or not it's worth applying. Unsecured cards in tier one often becomes your forever cards. Unless you're using a secure card, there's really no rush to upgrade. The goal here isn't to rack up cards. It's to get comfortable using credit responsibly, paying off your balance on time, keeping your utilization low, and building a solid payment history. As an honorable mention in this tier, let's talk about credit building cards. With the rise of fintech companies, building credit has become easier and easier. Companies like Tomo, Credit.ai, Extra, and Current have introduced a new type of product similar to a credit card, but with some key differences. These credit building cards differ from regular credit cards in a few ways. These cards don't perform a credit check when you apply, which is a huge advantage if you're just starting out or recovering from past mistakes. You can begin building credit without worrying about being denied or adding a hard inquiry to your credit report. Unlike secure cards, these cards don't require you to put down a deposit. This saves you money up front while still giving you the opportunity to build credit. Now with these cards, they work more like a debit card or a charge card because the thing is that you can't carry a balance and they don't charge your interest. So this protects you from getting into credit card debt while learning how to manage credit responsibly. So with these cards, instead of relying on your credit score, these cards focus on your banking history. So this is your income, account balances, and spending patterns. So this makes it extremely useful for those with no credit or those in the rebuilding phase. So this combination of features make credit building cards a great fit if you're just starting your credit journey or working on a fresh start. Now these cards are pretty basic. They usually don't offer any cash back, points, or any other perks like traditional credit cards. Their primary goal is to help you build or rebuild your credit. So I only recommend them if you'd want to put a deposit down for a secure card or if you don't qualify for an unsecured card just yet. Credit building cards can be a helpful stepping stone, but they're not a long-term solution. Once your credit improves, you want to transition to an unsecured card with better benefits and rewards. That said, they are a great tool to get started if other options aren't available. Now timing is super important for building credit the right way. I recommend keeping and using them for at least 6 to 12 months. And here's why the time frame is so important. Six months is the minimum amount of time that it takes FICO to generate your first credit score if you're starting from scratch. Until then, you're essentially invisible to the credit system. By sticking to your starter cards for at least six months, you give yourself time to establish that initial score. One year of positive payment history shows other credit card issuers that you can handle credit responsibly. Payment history makes up 35% of your FICO score and lenders use it as a key factor when deciding whether or not to approve you for better cards. So during this time, focus on two habits that are absolutely critical. First is to always pay on time. Even one late payment can significantly hurt your progress and set you back months if not years. Second is to keep your balances low and to keep your balance below 10% of your credit limit. This demonstrates low credit utilization which is another major factor in your credit score. For some people, especially those who are building from past credit problems, it might take more than a year to move up and that's perfectly okay. Credit building is a marathon, not a sprint. Consistency over time is ultimately what makes the difference. So you got to be patient and just stick to the process. Now let's move on to tier two or what I call the building tier. If your credit score falls between 580 and 680, you're in the fair credit range. At this level, your focus is all about continuing to build and optimize your credit to get better options down the line. By now, you still likely have that first card from tier one and for many, this is where they will receive their first credit score. Depending on how you manage your first card, like paying bills on time and keeping your balances low, your score can actually jump higher than 700, allowing you to skip this tier entirely. But for most people, they remain in tier two for a little while and that's perfectly okay. Once you build some history and a stronger credit profile, unsecured credit cards with no annual fees become more accessible. You want to look for cards that offer initial bonuses, cash back, or points. These cards will likely become part of your long-term rotation or what I like to call your forever cards. These cards you will keep and use regularly as your credit grows, forming the foundation of your overall credit strategy. At this stage, your income starts to matter more. The higher your income, the better chances of approval and higher credit limits that you qualify for. If your income isn't where you like it to be, it's fine. You can start working your way up with smart credit use and consistent habits. In tier one, you are learning the basics of managing a single card. By now, you already got those reps in and ready for your second or third card. This is where you start handling multiple cards. You want to start optimizing your spending by using cards with specific cash back categories for points. For example, you might have one card offering 2% cash back on dining and another offering 3% on travel. The key is to organize your spending so you're maximizing your rewards on every purchase. At this level, it's still a good idea to steer clear of cards with annual fees. Focus on getting comfortable managing your cards and honing your organization skills. Once you've mastered this, you'll be ready for premium cards with high rewards and fees that are easier to justify. You will likely stay in this tier for at least three to six months depending on your progress, but it's possible that you could skip over this step if you've done everything right in tier one. But if your credit score is still in this range, give it some time and your credit will have enough time to grow. Your average age of accounts will start to increase and your score should improve. The cards in this tier often overlap with tier one, but there are some solid options to consider. For example, the Citi Custom Cash Card that offers spending flexibility and categories and the Citi Double Cash Card which provides straightforward cash back rewards. You might also be eligible for the Built Rewards Card. This is one of the best options for renters because it lets you earn points on rent payments with no transaction fee. Approval requirements for the built card can go as low as 650, but it is a little bit harder to qualify for. If you do qualify for the built card, this is also the stage where you start dabbling with points and miles. By transferring your rewards to travel partners, this allows you to get way more value than basic cash back. While this strategy becomes more relevant in higher tiers, you can start experimenting of how this actually works. So to see this in action, the built card allows you to transfer points to hire. Let's just say that you and your partner want to go to Cancun for two nights and you were going to stay at the DreamSply Mojedes all-inclusive resort. For a standard room, it will cost you 70,000 points. Meanwhile, it will cost you $3,380 if you were to pay in cash. From a points perspective, this means that each point is worth four and a half cents. This is how you make your rewards stretch way further. Credit unions is another great option in this tier. They tend to have more flexible approval requirements for people with fair credit. For example, Navy Federal Credit Union is well known for being credit friendly. If you qualify, their platinum or cash rewards card are excellent starter options at this level. It's impossible to list every credit union here since they operate locally, but that's actually a good thing. By looking for credit unions in your area, they tend to offer better odds of approval because they understand the needs of their local communities. Plus, they often provide more personalized service compared to the big banks. Now, let's move on to tier three or what I like to call the preferred tier. When your credit score falls between 681 and 739, things start to get way more interesting. This is where you probably have at least one year of credit history. Your options start to really open up. You start to see cards with better benefits, bigger perks, and annual fees are starting to be more commonplace. Now, I know annual fees might sound like a downside, but in this tier, they are often justified. Many of these cards offer enough perks like travel credits or rewards to offset the fee entirely. So just make sure that you're going to actually use those benefits before committing. This is also the level where you see points and miles programs becoming a bigger deal. Major issuers like Chase, American Express, Capital One, and Citi, they have their own reward currency. And while you can't redeem them for many things, they are way more valuable when you use them towards travel. For example, points redeemed for airfare or hotels can often get you two to ten cents per point. Travel cards are more common here, but even if travel isn't your thing, these cards can be worth it. You will start to notice that intro offers in this tier are way more lucrative. In the lower tiers, you might see bonuses anywhere between one to two hundred dollars here and there, but you start seeing offers that can range between five hundred to a thousand dollars in value. The catch is that the spending requirements are going to be higher, so you got to make sure that you can hit the minimum spend before thinking about applying. Honestly, I think the majority of people watching this video will find tier three is where they're going to stay long term. Unless you're really serious about travel or rewards, there's really no need to climb any higher. Cards in this tier already offer great benefits and rewards without spending a lot of money that comes with the tier up. So let's start off with the no annual fee options. Chase offers some excellent choices with their Freedom line of cards. Some might argue that these are lower tier cards, but you usually need a better credit score and at least a year of history to get approved, unless you already built an established relationship with Chase. Capital One also has some great options like the Savior Rewards card, which is perfect for people who enjoy dining out or ordering in. Then there's the Venture One Rewards credit card, which allows you to earn straightforward rewards on travel. American Express offers the Blue Cash Everyday card. While this card has a annual fee, it is often waived for the first year. Regardless, it is a solid option for families who spend a lot on groceries. Next up is Wells Fargo. From them, I would recommend the Autograph card or the Active Cash card. Both of these cards have simple reward structures, one focusing on cash back and the other one on travel rewards. Recently, Wells Fargo announced travel partners, so they're also getting into the points and miles game. So if you primarily bank with Wells Fargo, these cards give you more options to maximize your rewards. Now, if you're open to credit cards with annual fees, this tier has some excellent options. You should only consider a card with an annual fee when the benefits that you actually use outweighs the cost. So think of it like this. If you're paying $95 or $325 for a card, but the perks, rewards, and credits that you take advantage are worth $500 or more, then this card is working for you. Let me break this down using the Chase Sapphire Preferred card as an example. The annual fee is $95. The current signup bonus is worth $750 when redeemed through Chase Travel, assuming that you hit $4,000 minimum spend in the first three months. You earn 3x points on dining and 2x on travel, so if you spend $200 a month on dining and travel combined, that's worth 18,000 points a year, worth another $225 through Chase Travel. Add in benefits like travel insurance, trip delay coverage, and no foreign transaction fees, you're well over the $95 annual fee. But on the other hand, if you don't spend much on dining or travel and don't plan to use Chase Travel bonus redemption rates, then this card might not be worth it for you. So here's the list of cards that I would recommend in this tier. So the first card, like the one I used in the example, is the Chase Sapphire Preferred. This is an awesome card for anyone who's looking to the points and miles game. It is a key part of the Chase Trifecta strategy, which when paired with the Freedom Unlimited or the Freedom Flex, this allows you to maximize your Chase points. Next is the Capital One Venture Rewards card. This one is the simplest travel credit card available because you earn two miles per dollar that you spend on every purchase, and is usually a pretty generous Santa bonus. Plus, you can transfer your miles to various travel partners. Next is the City Strata Premier. This is a great travel card and also earn rewards on non-travel spending, such as supermarkets and restaurants. It's ideal if you're in the city ecosystem and want flexibility in your earning categories. Next is the American Express Gold card. If lifestyle spending is more of your thing, this card is worth a look. While it does have a higher annual fee at $325, it earns significantly more points on groceries and dining. If you can fully utilize the credits that MX offers, you can offset the cost of the annual fee. Now, here's a sleeper card that you might not have considered. The PenFed Pathfinder Rewards Visa Signature card. This is a sleeper card that comes from a credit union that anyone can join. No government or military affiliation is required. The $95 annual fee can be waived if you become an active Honor Advantage member. With this card, it will give you a great Santa bonus, TSA PreCheck or Global Entry credits, and $100 for other travel fees like check bags or seat upgrades. It's an excellent choice if you're looking for a no-cost entry into the premium travel credit card space. Also at this tier, you could also consider specific hotel or airline cards. Based on data points, these cards are generally easier to get approved for compared to issuers' flagship cards. Financial offers on these cards are often great. They also include free night stays or airline miles. However, unless the card provides ongoing rewards like annual free nights or anniversary bonuses, it can be tough to justify keeping it beyond year one. If you are planning a big trip in the next year, a hotel or airline card could provide great value just with a Santa bonus. Just remember to reassess after year one to see if it still fits your needs. No matter what card you choose, all of these offer excellent rewards and perks. But before applying, just make sure the annual fee makes sense for you by fully utilizing the credits and benefits. At this tier, if you are a business or thinking about starting one, it's the perfect time to start looking into business credit cards. Business credit cards are a great way to separate your personal and business expenses, earn rewards, tailor towards businesses, and get higher credit limits. However, these cards typically require you to have more extensive credit history and a decent credit profile, usually around 680 or higher. That's why tier three is a sweet spot to start exploring these options. Here's why business credit cards make sense. First is that they build business credit. Even if you're just starting, many issuers report to the business credit bureaus. This allows you to establish a business credit profile, which can open doors to future loans and financing. Second is higher spending power. Business cards tend to have higher limits than personal cards, which is ideal if you need to make larger purchases for your business. And third, they offer rewards tailored towards businesses. Cards like the Chase Inc. Business Cash offer rewards on office supplies, internet, and phone services, while other focuses on travel or fuel. If you're wondering whether or not you qualify, the good news is that you don't need to have an established business to apply. Many issuers allow sole proprietors, freelancers, and even those just starting a side hustle to apply with their social security number instead of an EIN. The key here is strategy. If you're just starting, go for a no annual fee business card like the Inc. Business Cash or American Express Blue Business Cash. These cards let you build credit while keeping your costs low. If you already have consistent business expenses, consider premium options like the Inc. Business Preferred or the MX Business Gold for high rewards and benefits tailored towards frequent spending. However, if your credit score is still on the lower end of tier three, or if you don't have at least one year of solid credit history, it's better to wait before applying for a business credit card. Business card approvals typically factor in your personal credit, so a stronger profile increases your chances of success. If you're looking to move up the ladder, organization is key. At this level, you need to focus on maximizing your rewards while maintaining a strong credit profile. I recommend spending at least six to twelve months in tier three, and here's why. First is that it builds a track record. Credit card issuers want to see that you can responsibly manage multiple accounts. A year of consistent on-time payments and low balances demonstrate reliability and positions you for better offers. Third is to recover from hard inquiries. Every time that you apply for a card, it adds a hard inquiry to your credit report. Staying in this tier for a year allows for those inquiries to age and have less of an impact when you score, making your profile stronger for future applications. And third is to maximize rewards. Use this time to master the art of optimizing rewards, whether it is hitting minimum spends for welcome bonuses, or just using those points for maximum value, or just stacking rewards with category bonuses. During this period, you just want to continue to build the habits upon tier two. You always want to pay on time. Payment history is the most critical factor in your credit score. Even one late payment will set you back months, if not years. Next is to continue to keep your utilization low. Aim to keep your balances below 10% of your credit limit to show lenders that you can manage credit responsibly. And third is to consider about diversity. If you don't have a loan on your credit profile at this point, it might be worthwhile to add something. This will help you build a more rounded profile and help your score even grow higher. For many people, tier three is a sweet spot. Unless you're deeply invested in travel or high value rewards, there's really no need to climb higher. Cards in this tier offer excellent benefits without higher fees and commitments of premium cards. By staying in tier three for six to 12 months or longer, you're setting yourself up for long-term success. Whether you're working towards premium cards or simply just enjoying the rewards and perks that this tier has to offer. Now moving on to tier four, the premium tier. For most people climbing the credit card ladder, this is where your journey ends. And honestly, it's a great place to stop. So to succeed at this level, your credit score should be above 740 or higher for the best approved odds. Cards in this tier typically come with an annual fee ranging between 400 to $700, but they also offer high value perks and benefits to match. The key here is making sure that you're using the benefits enough to justify the cost. The thing is that premium cards in this tier are usually geared towards travelers. So here's what you can expect. Lounge access, TSA pre-check and global entry credits, hotel credits, and additional perks for dining and luxury shopping. These benefits can add a lot of value, but only if you actually use them. Some cards at this level are like almost a prepaid coupon book. A perfect example of this is the American Express Platinum card, which we're going to dive into shortly. If you're not into maximizing credits and perks, then these cards can end up costing you more than a no annual fee card. Another thing to keep in mind is that many of these credits are split into monthly, bi-yearly, or yearly benefits. So staying organized is critical to getting the most value out of your card. At this stage, your focus should shift from earning high sign-up bonuses to maximizing the value and comfort of these cards. If you already moved through the tiers, built a solid understanding of credit, and likely booked a trip or two using points and miles, now it's time about refining your strategy to get the most out of these premium perks. This will be The MX Platinum is one of the most well-known cards in this tier, and for good reason. It started off with a high welcome offer. Right now, you can earn 80,000 points after spending $8,000 in the first six months. As a pro tip, it is worth waiting for at least a 100k point offer or more if you can because MX offers are usually once in a lifetime. For rewards, you earn 5x points on flights booked directly through airlines or through MX travel, up to 500,000 points per year. This card also comes packed with valuable credits including $200 for hotels, $240 for digital entertainment, $200 for airline fees, and $200 in Uber cash credits. There's also additional perks for Walmart Plus, Saks Fifth Avenue, and Clear, adding even more value. You also get access to premium airport lounges like Centurion lounges, Delta Skyclubs whenever you're flying Delta, and Priority Pass lounges. To top it off, this card offers gold status with both Marriott and Hilton. All of these benefits come with a $695 annual fee. If you're curious whether the MX Platinum is worth it for you, you can check out the calculator linked down below or you can scan this QR code. I've held this card for a few years now so let me break down how I personally value these credits. I use the Uber cash, airline fee credit, and hotel credit. These alone make up a significant portion of the card's value for me. The credits for Saks Fifth Avenue and Clear aren't things that I normally spend money on so I don't count those towards my valuation. For lounge access, I value this about $160 per year depending on how often I travel and the cost of meals at the airport. For me, after subtracting the annual fee, the card still gives me $65 in value. It's not a huge margin but it's still positive so I keep it. The moment the cards start providing me negative value, that's when it's time to reconsider. Many premium cards make sense in year one because of the high welcome bonuses but by year two, you need to evaluate whether or not the credits and perks still justify the annual fee. If you're not using the card's features, you're just leaving money on the table. Remember, if you don't use it, you lose it. For most people, including myself, tier four is where the road ends and that's perfectly fine. This is a great place to optimize your spending and enjoy the premium perks that you've worked so hard to access. Now, if you are a high spender, you probably got a big net worth, preferably at least $10 million or more. This is where I'll consider moving up the tier. Tier five would be the elite tier or what I call ballers only. In tier five, you're in the top 0.1% of credit card users. Let's be honest, there's really no practical reason to aim for cards in this tier unless you're looking to flex or show off. These cards are more about status than value and while they're undeniably cool to whip out, from a credit card standpoint, the perks often don't justify the cost. The most famous card in this category would be the MX Centurion card, also known as the black card. This invite-only card has a $10,000 initiation fee just to get in followed by a $5,000 annual fee. There's plenty of speculation on how much money that you need to spend on your MX account to get invited. Some say it's multiple six figures a year while others claim it's six figures every single month. There's no official threshold but it is generally easier to qualify for the business version since business expenses tend to rack up much faster. In reality, the Centurion card isn't all that much different from the Platinum card. It does come with some extra perks like automatic elite status at hotels including IHG, Hilton, and Marriott as well as Delta SkyMiles Platinum Medallion status. But what really sets it apart is the 24-7 private concierge service. There are even wild stories online like about how one guy had a cold brown situation who called the concierge for help. Supposedly, they delivered a fresh outfit straight to his hotel stall. Whether or not it is true, it shows that the level of service that this card promises. You can still replicate many of the Centurion perks with a combination of other cards like the MX Platinum, Hilton Aspire, and the Marriott Bonvoy Brilliant card. Now, it will cost you but still more affordable than the annual fee of the Centurion card. Next up is the JP Morgan Reserve card. Like the Centurion, this card is invite-only and reserved for an ultra-exclusive group. Customers with at least 10 million dollars in assets managed by JP Morgan Private Bank. The reward program is nearly identical to the Chase Sapphire Reserve with one additional benefit, United Club Access. So, the annual fee for this card is $5.95 just slightly higher than the $5.50 fee for the Sapphire Reserve. For most people, there's really no need to chase cards in this category. They're more about prestige and practicality and the value just really isn't there. If you're starting from bad credit, I know it can feel like a long road to climb up that ladder. It may take time to remove negative marks from your credit report or you might have to let them age naturally. Typically, after about four years, delinquencies have less of an impact on your score and you should see improvement. But you don't have to go through this journey alone. That's why I created The Credit Collective, a community where you find people going through the same thing that you are, direct access to me, and step-by-step strategies to climb the credit card ladder faster. Scan this QR code or click the link down in the description to join us today.