Depending on how much you use your credit card, it can make a lot of financial sense to use more than one cash back credit card.
Some cashback cards give a higher cashback percentage at certain stores or within specific spending categories. So you should be using such a card anytime you shop at those places. This often results in up to a 5% savings.
When you only use one cashback credit card you are tied to the limitations of that card. Such limitations sometimes include maximum annual cashback earnings or maximum earnings at the highest cashback percentage.
Having a second cash back credit card, allows you to switch cards when you reach account limitations or when you will receive more cashback with one card over the other. This way you are earning the most cashback possible.
Do keep in mind that some credit cards have minimum spending limits to qualify for rewards. So make sure you meet all requirements before tucking away one of your cashback cards in the back of your wallet.
Another benefit to having multiple credit cards is that they each may offer balance transfer deals throughout the year. So if you do happen to build up a balance owing, you can transfer it to the other card at a low rate. If you’re smart, you can even get the card issuers competing against each other offering better interest rates and lower fees.
Earn up to 5% cashback everyday or up to 20% online on Discover's wide selection of cash back cards.
Earn up to 3% cashback on everyday purchases such as gas, home improvement and department stores.
Receive up to 5% cash back in quarterly bonuses and 10% online at select merchants.
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