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Is it worth having multiple cards for each expense category (dining, gas, department store), etc?

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Kendro
Contributor

Is it worth having multiple cards for each expense category (dining, gas, department store), etc?

If an average American makes $50,000 a year (just throwing a not so low but not so high number out there), realistically that is about $36,000 after taxes and $3,000 a month.  2% is generally a solid percentage on points.  So with a $3,000 budget, if they spend $1,000 a month on credit or $12,000 a year, even with a solid 2% back, that is only $240.

 

Is it worth having multiple credit cards and juggling different points on different cards (1,000 points on a gas card, 2,000 on dining, etc.) for what will total a relatively small amount?

 

I currently have an AMEX BCE as my workhorse and a Chase Freedom for 5% categories that will net me more than AMEX a few months out of the year.  I was tempted to open more cards for each type of purchase but not sure if it is worth it.  What do you guys do?

Message 1 of 10
9 REPLIES 9
Wolf3
Senior Contributor

Re: Is it worth having multiple cards for each expense category (dining, gas, department store), etc

Not particually worth unless you are a regular shopper and the rewards far exceed your normal credit card.   I have 4 such accounts and only 2 major credit cards.   

 

For me, the best portfolio would be cobranded cards only, where I get the store deals but still major CC.       

Message 2 of 10
iCoop
Regular Contributor

Re: Is it worth having multiple cards for each expense category (dining, gas, department store), etc

I fully agree with you that having multiple cards for the typical consumer is just not worth it. Especially when you add in the costs of the reward cards in the form of annual fees and high interest rates. I prefer to have just one to two main cards that i use faithfully. Instead of chasing rewards I will spend carefully to have more funds available to reward myself instead of being rewarded by my credit card company.



Starting Score: EQ 675 | TU 688 | EX 702
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Goal Score: 750 (Across All 3)


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Message 3 of 10
afbar1114
Valued Contributor

Re: Is it worth having multiple cards for each expense category (dining, gas, department store), etc

i have cards for certain things. but freedom helps alot. when they dont offer grocery i will use my BoA 123 card as wel as when they dont offer it for gas i will use BoA card. i  already got $14 from boa for just one month of purchases. 

AMEX PRG; AMEX EveryDay $14,800; Freedom $6k; Sapphire $7k; IHG Select $5k; Discover $2,400; BofA Better Balance $9,100; Bank Americard $5,900; Citi DC $2,700; Citi Diamond $2,500; BestBuy $20,000; Amazon Prime $5k, United Club $15,000; Home Depot $20,000; Barclays $7,500

Total Credit Limits: $122,650
Message 4 of 10
bribro
Valued Contributor

Re: Is it worth having multiple cards for each expense category (dining, gas, department store), etc

I currently choose between Freedom, CSP and Citi Dividend based on what pays the most in rewards. I will add AmEx BCE near the end of the year as well. All my cards are on auto-pay so it's easy to manage; I just have to remember what to use for each spending situation. It's a little cumbersome, but you're maximizing your rewards as well as diversifying your relationships with multiple banks (a good hedge in case one bank decides to dump you). The sign-up bonuses are nice too.

TU FICO: 800 (2/1/14) | CK Score: 802 (2/1/14) | CS Score: 805 (2/1/14)

J.P. Morgan Palladium ($250k) | AmEx Platinum (NPSL) | AmEx SPG Personal/Business ($50k/$50k) | Citi Executive AAdvantage WEMC ($50k) | Citi Dividend WEMC ($50k) | Chase Sapphire Preferred VS ($50k) | Chase Ink Bold WEMC ($50k Flex) | Chase Ink Plus WEMC ($25k) | Chase Freedom VS ($25k) | Chase Freedom WMC ($25k) | Chase MileagePlus Explorer ($25k) | Chase Southwest RR Plus Business/Personal ($15k/$15k) | Barclays US Airways ($25k) | Barclays Hawaiian Airlines ($25k) | BofA Alaska Airlines ($10k) | Lexus Financial Services ($30k) | Mercedes-Benz Financial Services ($50k)
Message 5 of 10
Brusilov
Established Contributor

Re: Is it worth having multiple cards for each expense category (dining, gas, department store), etc

My plan is the following cards:

 

B&N Mastercard: 5% for Books

Penfed Platinum Rewards:  3% for Groceries

NFCUcashRewards: 1-1.5% everything else

 

Amazon Store Card: 0% Financing for larger purchases

 

Only other card that might be nice is maybe an all around low interest rate, no rewards one... and possibly a Newegg card as well for 0% on computer parts.  Of course if you time it right you can always hit up a 0% BT at Navy Fed as well.

Message 6 of 10
Anonymous
Not applicable

Re: Is it worth having multiple cards for each expense category (dining, gas, department store), etc

I collect Amex points quite frankly.  No expiration, no limit and the most flexibility.  That last part of course results in dilution compared to a targeted rewards program such as Citi Aadvantage spending for miles but its hassle free.

 

I put all expenses on the Amex charge, thereby treating it the same as cash lol 

Message 7 of 10
Anonymous
Not applicable

Re: Is it worth having multiple cards for each expense category (dining, gas, department store), etc

I know a lot of people like to have multiple cards for every category, even cards for individual stores. Me I would rather have as few cards as possible, one or two, so that way all my spending and rewards are not spread out over multiple cards. Also with many cards, even if you sign up for autopay and reminders you still have to monitor your accounts to make sure the bill was paid.

 

I like to keep things simple.

Message 8 of 10
bichonmom
Senior Contributor

Re: Is it worth having multiple cards for each expense category (dining, gas, department store), etc

I've been wondering that as I juggle my new cards and try to figure out which one to use every place I shop. Smiley Happy

 

It's kind of hard to keep track, probably because I've only had rewards cards for 6 mos. But I like the idea of actually getting back something for spending money that I was spending anyway. I'm still trying to figure out the best way to use my cards. In some ways, I think it was easier to just use NFCU @ 1% for everything.

 

For example, I get 2x pts w/Zync @ Chiptole... or 2% w/Amex Costco. Can't figure out which is my best bet. Smiley Embarassed

 

I think once you get a system worked out, it's probably pretty efficient, though.

 

 

EQ FICO 750 | TU FICO 761 (Walmart) | EX FAKO 767 | Goal: 800+

Edits, funky spacing and spelling due to my iPad not getting along with the forum editor!

Message 9 of 10
Lambo23
Frequent Contributor

Re: Is it worth having multiple cards for each expense category (dining, gas, department store), etc


@Anonymous wrote:

I collect Amex points quite frankly.  No expiration, no limit and the most flexibility.  That last part of course results in dilution compared to a targeted rewards program such as Citi Aadvantage spending for miles but its hassle free.

 

I put all expenses on the Amex charge, thereby treating it the same as cash lol 


same here. All expenses go on the zync. Planning to apply for the PRG in 6 months to get 3x airfare, 2x gas and groceries, 1x everything else and keep the zync for 2x at restaurants and "green" stores. I think it would be the ultimate rewards combo for my current spending. I really want a BCE card though Smiley Wink I guess I'll wait and see how this point system works out for me and then decide.

Message 10 of 10
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