Maximize your rewards with credit card combos

Your Weekly Advisor Update

A Note From Clint:

There was a time when I believed in the myth of the “perfect” credit card. I would spend hours comparing card benefits searching for “the one” that would provide the most value. But I eventually came to the realization that there’s no one-size-fits-all card that's the best at everything.

Today, I use multiple credit cards on a weekly basis. By leveraging the top features of each, I glean a higher overall yield from my purchases than any one of these cards would provide on their own. This week, we’ll look at why card combos can be so effective and list a few of the most popular strategies.

Cheers,

Clint

Clint Proctor

Lead Editor

Credit Cards and Travel Rewards

Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations.

Credit Card Combos Can Deliver a Powerful 1-2 Punch 

The main idea behind using card combinations is to find cards with earnings structures that complement each other.

Many credit card enthusiasts try to stick with cards that earn the same rewards currency (e.g. Chase Ultimate Rewards) so they can combine their earnings onto whichever card offers the best redemption value. Others create their own DIY card combos from multiple card issuers.

Here’s a closer look at how some of these different methods work.

Chase Ultimate Rewards Credit Card Combos

Of the four personal credit cards that earn Chase Ultimate Rewards points, two are no-annual-fee cash-back cards: the Chase Freedom Flex and Chase Freedom Unlimited. The other two are travel cards: the Chase Sapphire Preferred and Chase Sapphire Reserve.

Both cards offer 1:1 points transfers to travel partners and get 25% to 50% more value out of points when redeemed for travel through Ultimate Rewards.

Since the Freedom cards have $0 annual fees, it could make sense to use both in tandem with a Sapphire card. With this Chase Trifecta, you could earn 5 to 10 points per dollar on travel, 5 points per dollar on rotating bonus categories, 3 points per dollar on dining, drugstores, streaming services and online grocery purchases, and 1.5 points per dollar on everything else.

American Express Membership Rewards Credit Card Combos

Popular American Express credit card pairings typically include two or more cards that earn Membership Rewards points. 

By combining the Gold and Platinum cards together, for example, you’d earn 5 points per dollar on flights and prepaid hotels and 4 points per dollar at grocery stores and restaurants.

If you’re a business owner, you could also build an Amex Trifecta by coupling two of the cards above with a Membership Rewards-earning business card.

DIY Credit Card Combos

Not committed to any particular credit card rewards program? That gives you even more flexibility. Simply build your own combination of cash-back cards and/or travel cards that match up best with your spending, regardless of card issuer.

Only combine cards that carry annual fees if your enhanced benefits would outpace your higher costs. It’s also worth pointing out that if you value simplicity, a flat-rate 2% cash-back card might be a better fit. But if you enjoy strategizing to maximize your rewards, a card combo could take your earnings to the next level.

Mortgage Rates Dip As Economists Predict Home Prices Could Soon Follow

Mortgage rates significantly jumped in the spring partly due to rising inflation, but have more recently been driven down. That’s partly because The Federal Reserve took repeated action to rein in inflation in an attempt to address economic concerns, though some economists fear such actions could become too aggressive and inadvertently tank the economy.

Here’s what else you should know
this week:

Better Together: The Best Credit Card Groupings For Under $100 Per Year

Building great card combinations doesn’t require paying large annual fees. All three card trios that this article highlights have under $100 in combined annual fees with the potential to earn incredible rewards.

How To Choose The Best Credit Card Pairings To Maximize Your Earnings 

Not sure where to start with finding the right card pairing for you? Follow these five tips for helping you earn the highest rewards for your top spending categories.

Should You Apply for Multiple Credit Cards At The Same Time? 

If you are thinking of getting two or more credit cards, you might want to submit all of your applications on the same day. But should you? We explore the benefits and the risks of applying for multiple cards at the same time.

Best Travel Credit Cards Of  2023

It’s easier than you think to leverage your credit card rewards to snag award flights and upgrades. Be sure to pay off your balance in full to avoid hefty interest charges that will erase your potential savings.

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