Why Have Multiple Credit Cards?

Tl;dr: If you can manage multiple cards, you can maximize free award travel, upscale perks, and consumer protections.

The average American has two or three credit cards. Plenty have zero. We have… quite a bit more than that. Although the right number of credit cards depends on a person’s preferences and capacity to manage debt, there are a lot of benefits to managing a fairly robust stable of credit cards–and we’ve tried to compile them into a handy list!

Earning more points on spending

We spend a lot of money dining out and on rent, so the Bilt card is a must-have for us. Whatever your major spending categories are, there’s probably a card out there to help you squeeze more rewards, and thus more free trips, out of the spending you are already doing.

Maximizing sign-up bonuses

The quickest way to earn hundreds of dollars (if not $1k+) worth of travel rewards is to sign up for a new credit card, especially if you can wait until peak offers come around (like these past examples from Capital One, Chase, and Amex). You could likely get yourself to Europe or Asia on points each year just by opening a new card. To prevent fees from piling up, focus on cards that are worth keeping and cancel ones that are not—just make sure you wait 12 full months before cancelling.

Getting more value for your points

More cards can equal more flexibility. Although I find the most value in sending my points out to Alaska, Delta, and Hyatt, it’s good to have a wide variety of options available to maximize your redemptions: transfer partners, portal redemption bonuses (like 1.25-1.5¢ values when redeeming Bilt or Chase points), and statement credits (like the ability to erase travel purchases with the Venture X). Each card issuer has different transfer bonuses at different times, and having a couple different cards makes it more likely you’ll be able to multiply your point balances.

More merchant offers

Merchant offers are a great way to get discounts or extra rewards on purchases. Amex, Chase, and Citi each offer special offers from merchants ranging from airlines to restaurants to retail stores and beyond, while SimplyMiles does something similar, offering American Airlines miles for purchases with select merchants using a linked MasterCard. The more of these four options you have in your wallet, the more likely you may be able to get a deal on your next purchase.

More spending offers

Card issues will occasionally offer additional bonus points if you hit certain spending targets. I have been offered 4,000 Amex points after spending $7,500 on my Amex Platinum, 2,000 AA miles after spending $300 per month for 3 months on my AA Aviator, and 10,000 IHG points after spending $5,000 on my IHG Premier. By having several cards, it’s more likely that I will have an opportunity to cash in on bonus opportunities like these.

More protections

Credit cards can come with an incredible array of protections on your purchases: no foreign transaction fees, rental car insurance, trip cancellation and interruption insurance, trip delay insurance, purchase protection, extended warranties, return protection, cell phone insurance… even roadside assistance. Not every card will have each benefit though, and not every benefit will work in the same way—for example, my Amex rental car insurance doesn’t cover rentals in Australia, New Zealand, or Italy, while my Venture X covers those but excludes, Jamaica, Israel, and Ireland.

More cards means means more options to ensure that important purchases are covered. It also means backup—I already used my Amex trip delay insurance once, and claims are limited to two per twelve month period. By spreading trips across multiple cards with trip delay insurance, I can maximize the chances of being covered in the event of another delay.

More travel options

A good hotel card (like the IHG Premier) can provide flexibility and savings. With a free night award each year, you can often book a hotel in an otherwise-expensive area without needing to pay high cash or points costs. It also allows you to take advantage of sizable discount rates on the list price of rooms.

Airline cards, meanwhile, often provide free checked bags, offering more flexibility in how you travel (and making ski trips much more affordable). Alternatively, cards like the Amex Platinum that come with an airline incidental credit can be used for checked bags too, as well as other things like paid seat assignments.

Enhanced travel

There are tons of credit cards that can greatly improve your travel experiences with luxury perks. And while some of these have hefty annual fees, there are also many with no fees, or fees that are nearly or completely offset with easy-to-use credits.

Concierge service

A credit card concierge can be a great way make a restaurant reservation or get event tickets. They’re not perfect, but they can be handy, especially when traveling abroad where you don’t speak the language. The concierge offered through the no-fee Bilt card is my favorite so far, because you can reach out via their website—great for when you’re traveling abroad and don’t have phone service.

Lounge access

The no-net-fee Venture X offers access to a host of lounges worldwide through the Priority Pass that comes with the card. The Amex Platinum and Chase Sapphire Reserve have the Priority Pass as well, with the Platinum also offering access to Minute Suites and the Reserve having both those and Be Relax Spa massages. Amex, Capital One, and Chase all now have their own propriety lounge networks (Amex’s is the most expansive). Amex cards offer (limited) access to Lufthansa and Delta lounges when flying those airlines, while the Chase Sapphire Reserve offers access to certain Maple Leaf lounges when flying Star Alliance carriers like United.

You can also get access to airline lounges with premium credit cards like the Amex Delta Reserve, Citi AA Executive, and Chase United Club Infinite. The $99-fee United Explorer card also comes with two United Club passes annually.

Elite status

Hotels. Many hotel credit cards offer elite status directly—including no-fee cards. Some premium credit cards also offer status: the Amex Platinum offers elite status with both Marriott and Hilton, while the United Club Infinite card comes with IHG Platinum status, for example. Various premium cards come with luxury hotel programs that offer elite-like perks (e.g. late checkout, room upgrades) when booking directly through the credit card’s travel portal.

Airlines. No credit card offers airline status directly, but even entry level cards offer key elite perks, like priority boarding and free checked bags. The Delta Amex Platinum and Reserve add to that with a place on the upgrade list, while the highest-end AA and United cards offer priority check-in. Most airline cards—especially premium ones—now offer an accelerated path to elite status as well.

Rental cars. Premium cards like the Amex Platinum, Capital One Venture X, and Chase Sapphire Reserve come with elite status with Avis, Hertz, and National, while you can get Avis status with the United Club Infinite and Hertz President’s Circle status with the Delta Amex Reserve. Some other cards (like the Hawaiian Airlines Mastercard) also come with elite status with certain rental car chains.

Special access

Finally, various banks and specific cards offer certain exclusive opportunities to their customers. Capital One famously had the inside track for Taylor Swift tickets, while Amex has first dibs on the U.S. Open. Having a few different cards makes it easier to take advantage of special opportunities like these when they come around.

Conclusion

Managing multiple cards isn’t for everyone. You have to be able to avoid overspending or carrying a balance, avoid mistakes like overlooking a payment, manage the impact on your credit score, and spread out annual fees as necessary to keep them manageable. But if you can do all that, the rewards can be immense, resulting in more award trips, more luxurious travel experiences, and better protections for all your purchases.