What’s in your wallet? How to decide which credit cards to use

How many credit cards do you need?

How many credit cards do you need?

As with all personal finance things, your credit card habits must adapt to you. Think about what is likely to work best in the long term. If you just want a credit card to help you build your credit profile, and you hope to enjoy some extra benefit if it’s a reward card, that’s fine.

In fact, if you are new to credit management, or if you are not sure how well you can handle credit, it is probably a good idea to start slow, keeping only one credit card in your wallet.

On the other hand, it may be useful to have two or three credit cards in your wallet. I usually have three credit cards. That way, if something goes wrong with a card, I have a backup or two willing to happen instead.

Maximize your cash back rewards

Maximize your cash back rewards

You can also maximize your cash back rewards better with more than one credit card. You can get a rotatoriq category credit card and a credit card that offers a flat 2% cash back. During the quarters when you receive the 5% cash back special, it makes sense to use that card. But the rest of the time, when it is not for items that fall into the top prizes category, you can use the other card. It is a way to make sure you are receiving the money you want.

In some cases, you may want different awards. I usually put online purchases on credit cards with rewards that are paid in cash to a 529 account for my child. However, most of my daily expenses go on a travel rewards card. I have already used my reward this year for three trips (plane tickets for my son and me once, and plane tickets for me once). Finally, I have a credit card I can use for business. I can redeem gift cards for the discount I can give to friends and family.

Finally, it may make sense for churners to have several credit cards just because it allows them to accumulate points faster. Construction of rewards, taking advantage of poor financing, and playing with one of the credit card issuers after another.

Choose your credit cards based on that information

Choose your credit cards based on that information

Find out what really matters to you, and choose your credit cards based on that information. If you feel you cannot handle a credit card now, then start slowly. While credit cards can be great tools, the reality is that you can quickly become overwhelmed by debt if you are not careful.

This is almost obvious, but it is so important that I need to say it again. Be doubly sure to pay the balance each month, no matter how many credit cards you have in your wallet. Otherwise, you have just been killed with high interest rates.

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