The benefits of having multiple credit cards

If you know someone with more credit cards than there are days in a week, you might question the logic behind owning several. While a collection of cards might seem excessive, having multiple credit cards can enhance your rewards, provide diverse perks, and even boost your credit profile.

If you're contemplating the transition from a single credit card to a selection of rewards cards, here are some strategies to determine which ones would be the most beneficial for you.

Cards for daily purchases

For many credit card holders, only a select few cards that excel in everyday transactions make it into regular use. Personally, I prefer a card that offers at least 2% rewards on general spending, along with a few others that provide enhanced rewards in my highest spending categories.

Here are some cards that are ideal for daily expenses:

Capital One Venture Rewards Credit Card — Earn 2 miles for every dollar spent on all purchases, which can be redeemed as a statement credit for travel at 1 cent per mile or transferred to Capital One's airline or hotel partners.

Citi Double Cash® Card (view rates and fees) — Provides up to 2% cash back on all purchases: 1% when you buy and an additional 1% when you pay it off. Rewards can be redeemed for cash back or combined with a premium Citi ThankYou card for transfers to airline and hotel partners.

Chase Freedom Unlimited® — Offers 1.5% cash back on non-bonus purchases, making it an excellent everyday credit card for earning Ultimate Rewards points when combined with a mid-tier or premium Chase card for point transfers. Besides the attractive 1.5% rate, you can also earn 5% back on travel booked through Chase Travel℠, 3% on dining (including takeout and eligible delivery services), and 3% at drugstores.

American Express® Gold Card — Earns 4 points per dollar on restaurant purchases (on up to $50,000 annually, then 1 point per dollar) and 4 points per dollar at U.S. supermarkets (on up to $25,000 per year), making it a fantastic option for avid diners and grocery shoppers.

Capital One Quicksilver Cash Rewards Credit Card — Provides 1.5% cash back with no annual fee and no foreign transaction fees.

Cards for occasional use

In my card collection, some cards are used only occasionally. This typically includes those offering 5% back on rotating categories throughout the year and 1% back on most purchases outside those category bonuses.

I keep a card handy when there's a rotating category bonus that appeals to me. However, if the category isn't relevant or I reach the card's purchase limit, it gets tucked away in my sock drawer.

Here are two cards I use occasionally for their category bonuses:

Chase Freedom Flex® — Offers 5% cash back on the first $1,500 spent in rotating categories each quarter (activation required), as well as on Lyft rides (through March 2025) and travel booked through Chase Travel℠. Dining and drugstore purchases earn 3% back, while all other transactions earn 1%.

Discover it Cash Back — Provides 5% cash back on the first $1,500 spent at select merchants each quarter. The list of eligible merchants changes quarterly and requires enrollment. You'll also earn 1% cash back on all other purchases.

The information regarding the Discover it Cash Back card has been independently gathered by Dinogo. The details on this page have not been reviewed or provided by the card issuer.

Cards with valuable perks

Some of my highest-annual-fee cards yield minimal rewards or cash back due to my low spending on them. However, these cards are valuable to keep for their generous perks, which often exceed the cost of the annual fees.

The Platinum Card® from American Express — Offers access to Centurion and Escape lounges, along with hundreds of Priority Pass lounges globally. If you're a Delta Air Lines frequent flyer, this card grants entry to the Delta Sky Club when traveling on a same-day Delta ticket. (Effective February 1, 2025: Eligible Platinum Card Members will receive 10 visits per year to the Delta Sky Club or Grab and Go when flying on a same-day Delta-operated flight). Besides lounge access, the Amex Platinum provides over $1,400 in statement credits, including up to $200 for airline fees, up to $200 for prepaid hotels, up to $155 in Walmart+ credits, and up to $240 in digital entertainment credits (enrollment required). The annual fee is $695 (see rates and fees).

Capital One Venture X Rewards Credit Card — Includes Priority Pass membership for the cardholder and all eligible authorized users. Additional cardholders can be added without any extra annual fee. Each Priority Pass membership allows access for two guests, and the annual fee for the card is $395.

World of Hyatt Credit Card — Cardholders earn a complimentary night at a Category 1-4 Hyatt hotel each year, which many find can easily cover the cost of a hotel stay that exceeds the card's $95 annual fee.

United Club℠ Infinite Card — Grants access to the United Club when traveling on United, Star Alliance, or partner flights for the cardholder and two guests, or one additional guest along with dependent children under 21. The annual fee is $525.

Citi® / AAdvantage® Executive World Elite Mastercard® (see rates and fees) — Provides Admirals Club membership for the cardholder, allowing access for you and your immediate family or up to two guests when traveling on an eligible flight. The annual fee is $595.

Cards that build credit history

Payment history, credit history length, and amounts owed on your credit cards together constitute 90% of your credit score. This makes it wise to keep your oldest cards active, even if they don’t offer rewards or perks. An open card can contribute additional available credit and maintain its current status with credit reporting agencies, regardless of whether you use it. Therefore, even infrequently used older cards continue to support your credit history.

A word of caution about keeping older credit cards open: Some issuers may close accounts that show no activity for a long time. It's a good practice to make at least one small charge on each card every year to keep them active.

Evaluating whether to renew or cancel

Each year, I reassess every credit card in my wallet by asking one straightforward question: Does this card deliver significantly more value than what I pay in annual fees?

When determining the value a card offers, it's wise to consider not only the rewards you earn but also how much you would pay, in cash, for each perk. The $300 travel credit on the Chase Sapphire Reserve® is easy for me to utilize, so I assess that at nearly its full value. However, I probably won’t use the $300 Equinox credit (enrollment required) on my Amex Platinum, so I assign that benefit a value of $0.

Here are some questions to reflect on:

• How much would I pay in cash for the lounge access offered by this card?
• Does this card offer benefits that my other cards already provide?
• Am I earning significantly more with this card compared to a 2% cash-back credit card?
• Am I already accumulating plenty of this specific points currency?
• Can I get similar benefits from a card with a lower annual fee?
• What is the minimum value I need to justify keeping this card?

If you determine that a card lacks sufficient value, consider canceling or downgrading it.

Conclusion

For some, having multiple credit cards can be beneficial for maximizing points and miles. However, there's also merit in keeping things straightforward. If you prefer not to track which card earns how many points in which category each month, you can always opt for a single credit card. Just ensure it earns good rewards on all purchases, offers benefits you’ll actually use, or rewards you in the categories where you spend the most.