Judemik wrote:I use credit cards only to shop online or for paying gas. But, I know some people who are using multiple cards and getting a lot of reward points. The idea of using multiple cards really scares me. I think if not used well, it can tangle things and choke us.
I read a blog on using multiple credit cards. (northwoodmortgage.com/mortage-questions/multiple-credit-cards-good-bad/ ) They have listed some tempting perks of using cards from different banks. And importantly, if used right, it can help increase my credit ratings which is required to secure a loan or a mortgage.
Now I think I should start using multiple cards because sooner or later I would need a loan to buy a house and I need to increase my credit ratings. I can manage if I use the cards wisely. But, I need some suggestions from who are using multiple cards. What other benefits does it have?
I have 13 cards, and certainly don't try to maximize my rewards with all of them. I mentally keep them in categories:
Pure rewards: For when I don't need any special benefits, and just want to maximize rewards. I don't need an extended warranty on groceries or a haircut, for example.
Transaction-linked benefits: Price matching, extended warranties, travel insurance, etc.
Transaction-independent perks: Lounge access, hotel status, etc.
Other: The cards offers occasional reward promotions that are useful, but apart from that I don't really use them, and mostly keep them for history.