Maximizing your credit card rewards involves using a strategic combination of cards that offer the best benefits for your spending habits. Different credit cards offer rewards in various categories such as travel, dining, groceries, and everyday purchases, so creating a combo that aligns with your lifestyle can help you earn the most value. By carefully choosing and using the right credit card combination, you can maximize cashback, points, or miles and unlock valuable perks like travel insurance, statement credits, and exclusive access to events.
Key Considerations for Choosing a Credit Card Combo
- Spending Categories: The first step in choosing the best credit card combo is analyzing your spending patterns. Look at where you spend the most each month — whether it’s on groceries, dining out, gas, travel, or entertainment — and choose cards that offer enhanced rewards in those categories.
- Rewards Structure: Credit cards generally offer rewards in three structures: flat-rate rewards (earning the same rate on all purchases), category-specific rewards (higher rates for certain types of spending), and rotating categories (changing rewards each quarter). Understanding the rewards structure that fits your spending habits is crucial for maximizing your benefits.
- Sign-Up Bonuses: Many credit cards offer generous sign-up bonuses if you meet certain spending requirements within the first few months. A well-timed sign-up bonus can give you a large amount of rewards quickly, making it a valuable factor when considering a card combo.
- Annual Fees: Some credit cards charge annual fees, which can range from modest to several hundred dollars. While cards with higher annual fees often offer more robust rewards and perks, you’ll need to ensure that the rewards you earn outweigh the cost of the fee.
- Travel vs. Cashback: Some people prefer earning points or miles that can be redeemed for travel, while others prefer simple cashback rewards. Your preference will shape which cards to include in your combo. Travel credit cards often come with perks like airport lounge access, travel insurance, and no foreign transaction fees, while cashback cards tend to offer straightforward rewards that can be used for everyday purchases or statement credits.
Best Credit Card Combinations for Maximizing Rewards
Here are some examples of credit card combos that can help maximize rewards for different spending styles:
1. Travel Enthusiast Combo
- Premium Travel Card: A premium travel card, such as the Chase Sapphire Reserve or American Express Platinum, should be the cornerstone of this combo. These cards offer high rewards on travel and dining, along with extensive travel perks like lounge access, hotel upgrades, travel insurance, and more.
- Airline or Hotel Card: If you frequently travel with a particular airline or stay at specific hotel chains, adding a co-branded airline or hotel credit card can boost your rewards in those areas. For example, the Delta SkyMiles or Marriott Bonvoy cards offer points or miles that can be redeemed for flights and hotel stays.
- Everyday Spending Card: To complement the travel-focused cards, include a card with strong rewards on everyday purchases like groceries or gas. The Blue Cash Preferred® Card from American Express offers high cashback on groceries and streaming services, making it a great everyday card for someone who also enjoys travel rewards.
2. Everyday Cashback Combo
- Flat-Rate Cashback Card: For those who prefer simplicity, a flat-rate cashback card like the Citi® Double Cash offers 2% cashback on all purchases (1% when you buy, and another 1% when you pay it off). This ensures you earn consistent rewards no matter where you shop.
- Category-Specific Card: Pair your flat-rate card with a category-specific cashback card like the Blue Cash Preferred® Card from American Express or Chase Freedom Flex℠, which offer higher rewards on groceries, gas, dining, or entertainment. These cards can help boost your earnings in key spending areas.
- Rotating Category Card: Cards like the Discover it® Cash Back or Chase Freedom Flex℠ offer 5% cashback on rotating categories each quarter, such as restaurants, gas stations, or Amazon. By using this card for those specific categories when they offer elevated rewards, you can maximize cashback throughout the year.
3. Business Owner Combo
- Business Credit Card: For small business owners, a business credit card like the Chase Ink Business Preferred® or American Express Business Gold is essential. These cards offer higher rewards on common business expenses like shipping, advertising, and office supplies. They also provide valuable perks such as employee cards, purchase protection, and extended warranties.
- Personal Credit Card for Miscellaneous Spending: Business expenses should be kept separate from personal ones, but having a personal credit card like the Capital One Venture Rewards or Citi Double Cash can be helpful for non-business-related purchases, ensuring you continue earning rewards even on personal spending.
- Fuel or Travel Card: If you or your business involves a lot of travel, adding a travel rewards card, such as the Chase Sapphire Preferred® or a fuel rewards card like the BPme Rewards Visa, can provide additional points or cashback for travel-related expenses like gas, flights, and hotels.
4. Luxury Rewards Combo
- Luxury Travel Card: A high-end travel card like the American Express Platinum or Chase Sapphire Reserve is ideal for those looking to maximize luxury perks. These cards offer high rewards on travel and dining, plus access to premium benefits such as airport lounge access, concierge services, and exclusive events.
- Everyday Cashback Card: Complement your luxury travel card with a simple everyday cashback card like the Citi® Double Cash to ensure you’re earning rewards on everyday purchases without overcomplicating your spending.
- Co-Branded Airline/Hotel Card: To make the most of your luxury travel experiences, consider adding a co-branded airline or hotel card. The Hilton Honors Aspire Card from American Express, for example, offers elite hotel status, free nights, and elevated rewards on Hilton stays.
Tips for Maximizing Your Credit Card Rewards
- Use the Right Card for the Right Purchase: Once you have your combo, make sure to use each card for the spending categories where it earns the most rewards. For instance, use your travel card for flights and hotels, your grocery card for supermarket purchases, and your rotating category card for quarterly bonus categories.
- Pay Off Balances in Full: To truly maximize rewards, always pay off your credit card balances in full each month. Carrying a balance and paying interest can quickly wipe out the value of any rewards you earn.
- Monitor Annual Fees: If you have cards with high annual fees, ensure that the benefits you receive justify the cost. If not, consider downgrading to a no-fee version of the card or canceling it altogether.
- Take Advantage of Sign-Up Bonuses: Sign-up bonuses can significantly boost your rewards in a short time. Plan your spending to meet the bonus requirements without going over budget.
Choosing the best credit card combo is all about aligning your cards with your spending habits. Whether you’re looking to maximize travel perks, earn cashback on everyday purchases, or balance both, the right combination of credit cards can help you earn more rewards and enjoy valuable perks. By strategically using your cards and managing them responsibly, you can maximize the benefits and minimize costs, turning your credit card usage into a rewarding financial strategy.