Credit cards are a powerful financial tool that can help you earn rewards and maximize your spending. With so many credit card options available, it can be challenging to know which ones to choose to maximize your rewards. In this article, we will discuss the best credit card combinations to maximize rewards, taking into account factors such as rewards programs, annual fees, and credit score requirements.
Before diving into the best credit card combinations, it’s essential to know your credit score. A credit score is a numerical representation of your creditworthiness and is a crucial factor that lenders consider when deciding whether to approve your credit card application or personal loan application. Checking your credit score is easy, and you can check cibil score free.
Another important factor to consider when choosing credit cards is the interest rate or the personal loan EMI. Personal loan EMI is the amount you have to pay each month to repay the loan amount. Calculating your personal loan EMI can help you budget your finances and plan your expenses accordingly.
Now let’s dive into the best credit card combinations to maximize rewards.
- Cashback Cards: Combining two or more cashback cards can help you maximize your rewards. Cashback cards offer rewards in the form of cashback on purchases. By using two or more cashback cards, you can earn cashback on different categories of purchases. For example, you can use one card that offers cashback on groceries and another that offers cashback on gas purchases. This way, you can earn more cashback on your everyday purchases.
- Travel Rewards Cards: If you’re a frequent traveler, combining travel rewards cards can help you maximize your rewards. Travel rewards cards offer rewards in the form of points or miles that can be redeemed for travel-related expenses such as flights, hotels, and rental cars. By combining two or more travel rewards cards, you can earn more points or miles on your travel purchases. For example, you can use one card that offers points on airfare purchases and another that offers points on hotel purchases.
- Balance Transfer Cards: Combining balance transfer cards can help you save money on interest payments. Balance transfer cards offer a low or zero percent introductory interest rate on balance transfers for a limited time. By combining two or more balance transfer cards, you can transfer your high-interest balances to the cards with the low or zero percent interest rate. This way, you can save money on interest payments and pay off your balances faster.
- Rewards and Cashback Cards: Combining rewards and cashback cards can help you earn rewards on a variety of purchases. Rewards cards offer rewards in the form of points, miles, or other rewards on purchases, while cashback cards offer cashback on purchases. By combining two or more rewards and cashback cards, you can earn rewards and cashback on a variety of purchases. For example, you can use one card that offers rewards on dining purchases and another that offers cashback on gas purchases.
- Store Credit Cards: Combining store credit cards can help you earn rewards on your shopping purchases. Store credit cards offer rewards such as discounts, cashback, or points on purchases made at the store. By combining two or more store credit cards, you can earn rewards on a variety of shopping purchases. For example, you can use one card that offers rewards on clothing purchases and another that offers rewards on electronics purchases.
When choosing credit card combinations, it’s essential to consider the annual fees of each card. Some cards have higher annual fees than others, and combining cards with high annual fees can be costly. It’s also essential to consider the credit score requirements of each card. Some cards require a higher credit score than others, and applying for too many credit cards can negatively impact your credit score.
In conclusion, choosing the best credit card combinations to maximize rewards requires careful consideration of your spending habits, financial goals, and credit score. By combining the right credit cards, you can earn rewards and cashback on a variety of purchases, save money on interest payments, and plan your expenses more efficiently.
However, it’s important to remember that credit cards should be used responsibly, and carrying a balance can quickly lead to high-interest payments and debt. Therefore, it’s crucial to pay off your balances in full each month and avoid overspending.
