Here’s The Best Way To Diversify Your Credit Cards

Most people have a love-hate relationship with their credit cards. The average American has three cards, and while they can be used to fund an online shopping habit and come back to haunt you, they can also help you reap serious rewards if you act responsibly.

The key isn’t having more credit cards in your wallet but rather choosing the right ones to take the proper steps toward financial freedom. That means more diverse cards with a wider range of rewards. Here are the top three you should seek out…

Cashback Cards

Cashback cards are incredibly simple. Just spend money and get rewards back – what’s not to love? Most card issuers will give you between 1% and 3% cash back on every single purchase, from essentials like groceries to fun purchases like movie tickets. Once you start using this card regularly, you could even rack up a few hundred dollars per year in cashback credit.

You can also sign up for a specialty cashback card that allows you to earn up to 5% cash back on things like groceries, entertainment, and restaurants. Rotate these cards regularly for diversified rewards.

Specialty Credit Cards

Are you a jet setter looking for a way to see the world while still being easy on your wallet? You may want to try a travel rewards card or a spending account through an airline. This specialty card lets you earn miles through purchases that can later be used for flights and hotels while giving you the motivation to be more frugal to really enjoy that Europe trip.

On the other hand, you can sign up for a specialty card with a retail shop or grocery chain that you regularly shop at to rack up and diversify rewards. This helps you save on the essentials and boosts your credit score for greater financial health.

Classic Cards

There’s nothing wrong with keeping it simple. It’s always beneficial to have a basic credit card with a lower spending limit to keep in case of emergencies.

Use it for gas, food, or recurring monthly payments to slowly but surely build up your credit, allowing you to apply for a higher spending limit and more specialty cards down the line. This type of card is perfect for younger individuals trying to raise their credit scores or those who just like to stick to the essentials.

Less Debt, More Rewards

It’s less complicated than you think to spend wisely and build up rewards for a more secure financial future. Just a few (less than 5!) cards can help you diversify rewards and save money while building up a solid credit history.

Whether you’re a makeup enthusiast who earns great freebies and credit at the beauty counter or a simple spender who just wants to build up a few points every time they pump gas…there’s a credit card out there for you.