You don't need to carry around every credit card you own, especially if you've got a lot. You only really need the cards that are earning you the most rewards. Here's the cards that are worth carrying (and using) the most often.
Some people carry around a single credit card to use everywhere, while others cram a whole stack into their wallets for every possible need.
How many credit cards should you actually be carrying? If you want to use your credit cards to earn rewards, then you'll definitely need a few.
The different types of rewards credit cards
When you're trying to earn the most rewards, there are three kinds of credit cards you need.
The first kind is used just for spending where you receive some kind of bonus rewards. For example, the Chase Sapphire Preferred offers 2x points on all dining and travel, so if you eat out often, or have a lot of travel expenses, you'll want to use your Sapphire card only for those purchases. You can tailor your card to where you spend most. Other cards can offer bonuses on gas, groceries, or office supplies. There are also cards that offer you bonuses at specific stores or travel spots.
Another important type of bonus spending is the sign up bonus. If you're looking to receive a sign-up bonus from a new credit card, you'll also want to prioritize its use.
The second kind of rewards credit card you need is one that offers you a high rate of return on purchases that don't qualify for a bonus. For example, the Wells Fargo Cash Wise Visa offers 1.5 percent cash back on virtually all purchases.
Note that, if your preferred card for non-bonus spending is an American Express, you should also have a Visa or Mastercard to use where Amex is not accepted.
Finally, there are credit cards that offer you some kind of valuable cardholder benefit. For example, many airline credit cards will offer you perks such as a free checked bag or priority boarding.
Cards you keep versus cards that you carry
If you're really into earning credit card rewards, you might have ten or more credit card accounts open. It wouldn't make sense to carry all of those cards, all of the time. Not only would you have trouble fitting them all into your wallet, but you would also risk a huge headache if your wallet is lost or stolen.
First, you'll always want to carry the cards that you use for non-bonus spending -- that's your everyday card. Next are the cards that offer you bonuses on your most frequent purchases. If you have a card for a retailer that you rarely use, you might as well keep that card at home until you need it.
Lastly, you wouldn't need to carry airline and hotel cards that you only keep for specific travel benefits. Instead, you can keep those cards at home, and carry them only when you're traveling.
How many cards is too many?
Some people will tell you that there's no such thing as too many cards. This can be true to some extent. Each card you have open and in good standing will add to your credit history and increase your credit score over time. Furthermore, every credit card you have includes a line of credit that will reduce your debt-to-credit ratio for a given amount of debt. And having a low debt-to-credit ratio will help your credit score.
Yet I would contend that it's still possible to have too many credit cards. If having an additional credit cards causes you to overspend or incur debt, then you have too many. If having multiple credit cards prevents you from managing your accounts responsibly, then you also have too many.
For example, some people with numerous credit cards might have trouble paying all of their bills on-time, or examining each statement for unauthorized charges.
Finally, you can have too many credit cards if you're incurring annual fees, but not receiving sufficient value. Many of the top reward credit cards have annual feels of $95 or more. Unless you're earning enough rewards from each card to justify this payment, then you might as well cancel it.
Remember
There are some cards that you should carry around with you for your everyday purchases, but the rest should stay home.
But for both kinds of cards, you need to manage them responsibly in order to get the most benefits. Don't open cards you know you won't use, and make sure you're paying off each balance in full every month.
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