Using Multiple Credit Cards To Maximize Your Rewards

There are more kinds of credit cards than ever, which means you have plenty of choices to tailor your spending and earn the most rewards. One of the best ways to do that is by using different credit cards for different purchases.

Don’t be put off by the bit of effort this takes. We’ll walk you through simple tips for maximizing rewards on all your purchases. Once you come up with your own credit card strategy, you’ll find that knowing which card to grab for a purchase is second nature – and you’ll see the benefits in your rewards earned!

Is it good to have multiple credit cards?

There are several benefits to having more than one credit card – not the least of which is that having a backup card is important in case your main credit card is declined for any reason.

There’s a huge variety of credit card rewards, so you might want one for travel, one for grocery shopping, and one for fueling up. Or one that you charge your everyday expenses to and one with no FX fees that you reserve for use when traveling. Perhaps you have a Mastercard for Costco shopping and an Amex for other daily spending. The combinations are endless.

Having multiple credit cards may also help your credit score. Paying your balance off each month shows that you can be trusted to use your credit access responsibly. Credit bureaus also look at how much credit you’re using vs. how much you have available. The higher your total limits and the lower your balances, the better your credit utilization score will be.

How to use multiple credit cards for the most rewards

If you want to get the most rewards, you’ll need a strategy. Here are some things you should consider to get the most out of your credit cards.

Take advantage of welcome bonuses

Credit card issuers should be fighting for your business! This is why they offer incentives for signing up for their cards.

Welcome bonuses often include bonus points or cash back – points usually require a minimum spend and cash back typically has a cap. Many cards also waive the annual fee for the first year.

If you’ve got your eye on a card, consider waiting until there’s a strong sign-up bonus so that you can start off with a good chunk of points.

Negotiate annual fees

Almost all premium rewards cards come with an annual fee – but did you know that fees might be negotiable?

Don’t hesitate to call your card issuer each year to discuss waiving the fee. Most companies would rather negotiate than lose you as a customer. Here are a few things to keep in mind when negotiating to have your annual fee waived:

• Mention that you are a long-standing customer (the longer, the better) – and that you pay your bill every month with no issues. The credit card company makes money off every transaction you make, so they have an incentive to keep you happy.
• Do some quick research on other credit cards being offered right now that have a sign-up bonus or no annual fee – and don’t be afraid to mention this in your conversation.
• You won’t get your annual fee waived unless you explicitly ask for it. The worst they can say is no.

Remember: Waiving the annual fee means more money in your pocket and maximizes your return.

Another option to have your annual fee waived is all-inclusive banking packages. For example, the TD Visa Infinite and Visa Platinum cards, including the TD Cash Back Visa Infinite^* Card, waive the annual fee for the primary cardholder and one supplementary cardholder if you have a TD All-Inclusive Banking Plan.

Know your spending and tailor your card use to it

A simple and effective way to maximize your rewards is to know your spending and use it to your advantage. This is especially important if you have a card that offers increased earnings on specific categories of spending.

To help you determine where you spend the most, look at your credit card transactions from the past few months. In particular, focus on categories that tend to have boosted earn rates on some cards, like:

• Gas
• Groceries
• Recurring bills
• Restaurants
• Travel

Once you identify the categories you spend the most in, you can figure out which cards to use for those purchases.

For example, you might use the American Express Cobalt Card for all restaurant and grocery purchases to get 5% back, the American Express Aeroplan Reserve Card to book Air Canada flights for 3% back, and the SimplyCash Preferred Card from American Express card to get 2% back on all other spending.

The number of cards you use depends on how many you're comfortable having in your wallet. Some people prefer to stick to 2 cards while others have no problem swapping between 4 or 5 different cards for their purchases.

The bottom line: No matter which card you use, funnel as much of your spending as possible into the categories that offer the highest return.

Make your payments on time

Credit cards are great for earning rewards, but the rewards are quickly negated if you’re paying monthly interest on your balance. One of the most important steps to earning rewards is to always pay off the full balance each month.

One easy way to ensure your balance gets paid is to have it come out of your bank account automatically at the end of each billing cycle. That way, you’ll never forget to pay on time again.

Max your credit card rewards with GeniusCash

There’s one more way to max your credit card rewards: use the GeniusCash app.

GeniusCash is a cash back rewards app developed by moneyGenius that sends real cash straight to your bank account. It’s the easiest way to earn max cash back on what you’re already spending.

When you download the GeniusCash app and connect your cards, you’ll receive custom recommendations to help you make the most of your everyday expenses – from which card to use at the grocery store or gas station to financial product and service offers that can help level up your returns. As you complete GeniusCash Quests and refer friends to the app, you’ll level up and earn more cash back. Plus, you’ll be the first to know about new, limited-time GeniusCash offers so that you never miss a deal.

FAQ

Does having multiple credit cards affect your credit score?

Yes, having multiple credit cards can affect your credit score. Credit bureaus like Equifax and TransUnion look at how many accounts you have open, the credit limit for each, how much debt you’re carrying on each card, and how long you’ve had each card open. More cards doesn’t necessarily mean a lower score if you use them responsibly.

How many rewards can you earn in a year?

There’s no one answer as to how many rewards you can earn in one year. Your rewards earn depends on how many and which credit cards you hold, the welcome bonuses they came with, how much you spend on the cards, spending caps, and more. You’ll need to read the terms of your credit cards to learn about your rewards-earning potential.