Credit card combo optimizer

There’s no set number. Many people do well with one card they always pay in full. A second or third card can add rewards when each one covers categories the others earn little on, which is what this tool measures. Each extra card is another application, another annual fee and another bill to track, so only add one when the extra rewards clearly cover those costs.

It can be. Two cards with different strengths, say one that earns more on groceries and dining and one that earns more on everything else, can beat any single card. It works only if you use the right card each time and pay every balance in full, since interest at typical purchase rates wipes out rewards quickly.

It’s too many when you can’t keep track of due dates, when annual fees outweigh what the cards earn, or when new applications start to weigh on your credit. If the third card in the optimizer adds only a few dollars a year, that’s a sign two cards are enough for your spending.

An application usually triggers a hard inquiry, which can lower your score slightly for a while. Several applications close together can have a bigger effect, so space them out and apply only for cards you’ll keep. Opening new cards also lowers the average age of your accounts.

It depends on where your money goes. A household that spends heavily on groceries needs a different pair than someone who commutes by car or travels often. Pick a spending profile or enter your own numbers above and the optimizer shows the combination that earns the most at your spending, within your fee budget.

Many people do, because American Express isn’t accepted everywhere in Canada. A Visa or Mastercard in the same wallet covers the places that don’t take Amex. If you’d rather not carry Amex at all, tick “Leave out American Express cards” and the optimizer only uses Visa and Mastercard cards.

Use the “Which card for what” table: for each spending category it names the card in your wallet that earns the most there, its earn rate and what it earns in a year. Some people keep a note in their phone or label the cards. Remember that the issuer decides how each store is categorized, so a purchase may not earn the rate you expect.

Only if the extra rewards it brings to the wallet are more than its fee. The optimizer counts every card’s annual fee against the total, and the fee budget lets you cap what you pay across all cards. Set the budget to $0 to see the strongest no-fee combination.

If it charges an annual fee you can’t justify, cancelling or asking the issuer to switch you to a no-fee card may make sense. Closing a card can reduce your available credit and, if it’s an old account, the average age of your accounts, which can affect your score. Redeem or transfer any points first, since they can be lost when the account closes.