Why mix different credit cards?

Many people are now opting to use multiple credit cards. Are you looking to boost your savings? Discover how this strategy can benefit you and stretch your budget further.

Benefits of Combining Cards

There are numerous benefits to this approach. Users who combine cards can maximize their points and miles collection. Moreover, certain categories offer increased cashback, allowing your funds to stretch further.

Another significant benefit is that uniting cards gives you added flexibility regarding rewards.

Risks to Consider

While there are many perks, it’s crucial to use this method judiciously. Mismanagement can lead to financial strain.

Having multiple credit cards also means juggling several bills. If you can’t spare time each week to manage your finances, this seemingly smart choice might not work out.

Consider the effects on your credit score. If you apply for two cards too close together, it can hurt your credit rating. Lenders take such timing into account when evaluating your creditworthiness.

However, if you practice sound financial habits, managing two credit cards should pose no problem.

Tips for Choosing the Right Cards to Combine

Analyze Your Spending Patterns

The first step to finding the best cards to pair is self-reflection. Pay attention to your spending habits and identify your biggest expenses.

Various cards provide unique rewards for different spending categories. If you frequently spend on groceries and gas, search for two cards that reward those areas specifically.

Prioritize Cashback Categories

Excellent cards to pair are those with generous cashback offers. For instance, if you frequently spend on fuel and online shopping, the Citi Custom Cash card is a great choice, allowing you to earn up to 5% cashback in a selected spending category, turning your fuel expenses into savings.

For those who love online shopping, consider options like the Amazon Prime Rewards Visa Signature, which gives you 5% cashback on Amazon purchases, or the Capital One Walmart Rewards card, providing 5% cashback on Walmart online orders.

Combining Cards for Travel Miles

If your analysis indicates that travel is a significant expense, or you plan to travel more frequently, consider combining travel rewards cards. You could also pair a card that benefits your everyday spending 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 for 5% cashback on rotating categories and dining, while the Citi Double Cash rewards you with 2% on everyday purchases. This combo simplifies management while maximizing your cashback.
• American Express Blue Cash Preferred + Discover It: Use Blue Cash Preferred for groceries (6% cashback) and outside rotating categories for gas. Pair with Discover It to maximize 5% cashback on bonus categories like gas or online shopping, with double cashback in the first year.

Travel Rewards Card Combinations

• Chase Sapphire Preferred + Capital One Venture: The Chase Sapphire Preferred is great for travel and dining, allowing point transfers to airline and hotel partners, while the Capital One Venture earns miles on all other spending, offering flexibility and maximizing rewards.
• American Express Gold + The Platinum Card from American Express: Utilize Amex Gold for maximizing points on dining and groceries, and use Amex Platinum for flights to earn 5x points and enjoy luxury travel benefits like VIP lounges and hotel credits.

Tips to Maximize Rewards Using Multiple Cards

To get the most out of your rewards, make it a priority to keep your bills organized. Using spreadsheet applications can help you monitor due dates and account balances effectively.

Aligning your purchases with promotions can also yield substantial benefits. By shopping during special promotional events, you can snag significant discounts, allowing your money to stretch even further.

Also, check out how to secure first-class flights: