Diversifying Rewards Cards--A Bad Idea
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Should I have multiple rewards cards?
Though it may seem tempting, it's not a good idea to take every offer for reward credit cards you receive. Doing so could put you at risk in a couple of ways:
- Accumulation of debt: When you spread out your rewards programs onto multiple cards, you'll probably try to use all of them in an attempt to earn the rewards. This can cause you to lose track of the many things you charge and the overall debt that you accrue, putting you in danger of accumulating massive interest charges and completely losing out on the value of your rewards.
- Watering down rewards: If you focus your rewards on a simple cash-back credit card, you maximize the value of every purchase you make on that credit card. If you have multiple reward credit cards, you run the risk of putting too few purchases on each card to actually receive a reward or, at least, the best reward possible. This waters down your overall rewards.
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