The short answer is yes, you may want to have more than one rewards card, especially if you get an airline miles credit card. Most airline credit cards are best when used solely for airline spending. And that leaves plenty of other purchases in need of a good earning rate. So it’s wise to fill the void with a cash back credit card or a travel rewards card that is equally rewarding on all purchases.
Of course, this all depends on whether you pay your credit card bills in full every month. If you do, getting different rewards cards for each of your biggest expense categories is a great idea. But if you don’t plan to pay in full, you’ll save more by using a 0% or low-interest credit card for purchases that will lead to an end-of-month balance.
The practice of using multiple cards to serve a collection of specific purposes is called the Island Approach. And trying it makes more and more sense the better your credit is. People with good or excellent credit have far more options and far fewer fees, after all.
It is OK to have more than one rewards credit card, particularly if you make a lot of purchases in multiple categories. For example, you may want to have a cash back credit card for everyday expenses in addition to a travel card. And there are a few other reasons why it’d be a good idea to add a new rewards card to your wallet, such as the opportunity to earn a good initial bonus. But you’ll need to take additional factors into consideration, like whether you can handle having multiple cards or whether you’ve had many recent credit inquiries.
Hi! I don’t think that there’s a perfect number of credit cards for the best credit score – that would be individual to each person and would depend on many things including their income, net worth, past credit behavior, debt limits on the cards, etc. – but I personally think that it is best to have at least two credit cards from two different companies. All four of us in our family use one main credit card with one company but always carry a second (usually unused) card from a different company wherever we go and definitely when we travel. Here’s why: in my 54 years, my family and have experienced times when our card was hacked, we physically lost a card, the card issuer website went down or was closed at that time of day, or there was a compromise in the card’s security that made the card not useable. When that happened, we were glad to have another card waiting in the wings to use until the new card from the original company came. Even when the credit card company overnights the card, you still are card-less for a day or two. And if you are traveling, you might not get the card for awhile. So it may seem like overkill, but with my personality and my experience, it has been helpful to have two credit cards.… read full answer
The key thing in keeping a healthy credit score is less the number of cards you have and more the way you use them. Your credit score is bolstered by always making on-time payments and by avoiding opening too many credit accounts especially close together.
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