Why Mix Multiple Credit Cards?

More people are opting to use multiple credit cards these days. Need to save more money quickly? Discover how this strategy can be beneficial and stretch your dollars further.

Benefits of Combining Cards

This practice comes with numerous benefits. Users who combine cards can maximize their points and miles, along with receiving increased cashback on certain purchases, making their funds last longer.

Another significant perk of combining cards is the enhanced flexibility in accessing benefits.

Risks to Consider

While there are many perks, it’s crucial to approach this option carefully. Mismanagement can lead to financial difficulties.

Using several credit cards means juggling multiple payments. For those who can’t spare a few hours weekly to keep track of their finances, this strategy could have negative consequences.

Be mindful of your credit score. Applying for multiple cards in a short span can hurt your credit standing, as credit agencies take such applications into account.

However, if you practice sound financial habits, managing two credit cards should be manageable.

Choosing the Right Cards to Combine

Assess Your Spending Patterns

The first step in selecting the ideal cards to merge is self-assessment. Pay attention to your spending habits and identify where you tend to spend the most.

Various cards provide unique rewards for specific spending categories. If you typically spend more on food and fuel, seek out two cards that offer benefits in those areas.

Prioritize Cashback Categories

Combining cards with high cashback rates is a smart move. For instance, if you’re a frequent spender on gas and online shopping, the Citi Custom Cash card could be your best friend, offering up to 5% cashback in a chosen category, helping you save significantly on fuel.

When it comes to online shopping, consider options like the Amazon Prime Rewards Visa Signature for 5% cashback on Amazon, or the Capital One Walmart Rewards card, which also offers 5% cashback for online purchases at Walmart.

Combining Cards for Travel Miles

If travel expenses are a major part of your budget or you’re looking to travel more, think about combining travel miles cards. Alternatively, use a card that benefits your everyday spending along with one that enhances your travel rewards.

Examples of Card Combinations to Maximize Benefits

Popular Cashback Card Combinations

• Chase Freedom Flex + Citi Double Cash: Use the Chase Freedom Flex to earn 5% on rotating categories and restaurants/pharmacies, and Citi Double Cash for everyday purchases (2% cashback). This maximizes your returns without complicating card management.
• American Express Blue Cash Preferred + Discover It: Use Blue Cash Preferred for groceries (6% cashback) and gas outside of rotating categories. Add Discover It to maximize 5% cashback on bonus categories like gas or online shopping. In the first year, Discover It offers double the cashback, increasing returns.

Travel Rewards Card Combinations

• Chase Sapphire Preferred + Capital One Venture: Use the Chase Sapphire Preferred for travel and dining, transferring points to airline and hotel partners. Use Capital One Venture to earn miles on all other purchases. This combination provides flexibility and maximizes points/miles.
• American Express Gold + The Platinum Card from American Express: Use Amex Gold to maximize points on dining and groceries. For booking flights, use Amex Platinum to earn 5x points and enjoy luxury travel perks, such as VIP lounges and hotel credits.

Tips to Maximize Rewards Using Multiple Cards

To optimize your rewards, it’s crucial to keep track of your bills. Consider using spreadsheet apps to monitor due dates and balances if necessary.

Aligning your purchases with current promotions and bonuses can also lead to significant savings. Shopping during these periods can help stretch your budget.

Don’t forget to explore ways to book first-class flights: