Why mix different credit cards?

Combining various credit cards is becoming quite trendy. Need to save more urgently? Discover how this approach can benefit you and stretch your dollars further.

Benefits of Merging Cards

There are numerous benefits to this strategy. Users who combine cards can optimize their points and miles. Plus, there’s often a boost in cashback for certain categories, helping your money stretch further.

Another significant perk is the added flexibility in benefits when you merge cards.

Risks to Be Aware Of

While there are many advantages, it’s crucial to use this option carefully. Irresponsible use could lead to financial challenges.

Managing several credit cards means juggling multiple bills. If you can’t spare time weekly to organize your finances, this savvy option might backfire.

Consider how it affects your credit, too. Applying for two cards in quick succession can hurt your credit score, as companies evaluate these factors.

If you manage your finances wisely, handling two credit cards shouldn’t pose a problem.

How to Select the Best Cards to Merge?

Assess Your Spending Patterns

The first step in finding the right cards to combine is self-reflection. Pay attention to your spending habits, especially where your money goes most.

Various cards provide unique perks for different spending categories. If groceries and gas take a big chunk of your budget, seek out two cards that reward these areas well.

Prioritize Cashback Categories

Consider pairing cards that offer substantial cashback. For instance, if you frequently buy gas and shop online, the Citi Custom Cash card might be your best friend, giving you up to 5% cashback in a category of your choice, helping you save on fuel.

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, which also offers 5% on online Walmart buys.

Combining Cards for Travel Miles

If your evaluation indicates that travel is a significant expense or if you’re planning to travel more often, think about combining travel rewards cards. Alternatively, match a card that benefits your everyday expenses with one that enhances your travel rewards.

Examples of Card Combinations to Maximize Benefits

Popular Cashback Card Combinations

• Chase Freedom Flex + Citi Double Cash: Utilize the Chase Freedom Flex to earn 5% on rotating categories, and the Citi Double Cash for everyday spending (2% cashback). This combo simplifies management while maximizing your cashback.
• American Express Blue Cash Preferred + Discover It: Use Blue Cash Preferred for groceries (6% cashback) and gas outside of rotating categories. Pair with Discover It for 5% cashback on bonus categories like gas or online shopping. In the first year, Discover It doubles your cashback!

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. Capital One Venture earns miles on all other purchases, giving you flexibility and maximizing your points.
• American Express Gold + The Platinum Card from American Express: Utilize Amex Gold to earn points on dining and groceries, while the Amex Platinum card earns 5x points on flights and provides luxury benefits like VIP lounges and hotel credits.

Tips to Maximize Rewards Using Multiple Cards

To get the most out of your rewards, it’s crucial to keep up with your bills. Consider using spreadsheet apps to help monitor due dates and balances.

Aligning your purchases with special promotions and bonuses can also be very advantageous. Shopping during promotional times can yield significant savings, helping your budget stretch further.

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