Why combine different credit cards?

The practice of combining multiple credit cards is becoming increasingly common. Do you urgently need to save more? Learn how this can help you and how you can make your money go further.

Advantages of Combining Cards

There are many advantages to this practice. Credit card users who opt to do this can enjoy optimized points and miles accumulation. Additionally, there is a significant increase in cashback for specific categories, helping your money go further.

Another considerable advantage is that by combining cards, you gain more flexibility in benefits.

Potential Risks to Avoid

Despite the many advantages, it’s important to use this option wisely. If used irresponsibly, you may struggle with managing your finances.

Owning and using multiple credit cards means managing multiple bills. For those who can’t dedicate a little time each week to organizing their finances, this smart option can backfire.

You also need to consider the impact on your credit. If you apply for two cards too close together, it can negatively affect your credit score. Credit companies are always considering such factors when determining your score.

However, if you have good financial responsibility and intelligence, managing two credit cards shouldn’t be an issue.

How to Choose the Best Cards to Combine?

Understand Your Spending Habits

The first step in choosing the best cards to combine is self-analysis. You need to observe your spending habits, focusing on where you spend the most.

Different cards offer different benefits for specific categories. So, if you spend more on groceries and gas, for example, look for two cards that individually reward these areas.

Focus on Cashback Categories

Great cards to combine are those with high cashback rates. Based on the previous example, if you spend a lot on gas and online shopping, you could use the Citi Custom Cash, which offers up to 5% cashback in one spending category of your choice, making it an excellent way to maximize fuel savings.

For online shopping, there are smart options like the Amazon Prime Rewards Visa Signature, offering 5% cashback on Amazon purchases, and the Capital One Walmart Rewards, which offers 5% on online Walmart purchases.

Combining Cards for Travel Miles

If your self-analysis shows that travel is a major expense, or you plan to start traveling more, you could combine travel miles cards. Alternatively, combine a card that benefits your daily purchases with another that enhances your travel perks.

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 maximize your rewards, always prioritize staying on top of your bills. If needed, use spreadsheet apps to track due dates and balances.

It’s also highly beneficial to align your purchases with promotions and bonuses. By shopping during promotional periods, you can score significant discounts, making your money stretch further.

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