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There are a lot of benefits to having multiple credit cards. But as you determine which cards to add to your wallet, consider different types of credit cards so you can take advantage of varying rewards rates, bonuses and benefits.
Here are four types of credit cards to consider so you can get as much value from your everyday spending as possible.
1. Cash-Back Credit Card
Cash-back credit cards offer a lot of flexibility when it comes to redeeming your rewards. If you don't want to restrict yourself to travel rewards or general credit card points, cash back is a great way to go.
Also, many cash-back credit cards offer introductory 0% APR promotions, so if you've got a big purchase coming up or you're looking to pay down a high-interest balance, the right card can give you that intro 0% APR benefit along with some excellent cash-back rewards.
For the most part, the best cash-back cards don't charge annual fees, so you can hold onto them for years without ever needing to justify their yearly cost. While there are some exceptions, you'll usually get enough value from the card to make up for that annual fee.
To pick the right cash-back credit card, think about your spending habits and also your preferences for rewards. Some cards offer excellent bonus rewards rates on select everyday spending categories, while others offer a single high rewards rate on everything. Compare top cash-back credit cards to determine the right one for you.
Recommended Low-Interest Credit Cards
| Credit Card | Intro APR | APR | Learn More |
|---|---|---|---|
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0% intro APR for 15 months
0% intro APR for 15 months from account opening on purchases and qualifying balance transfers. 20.24%, 25.24%, or 29.99% Variable APR thereafter; balance transfers made within 120 days qualify for the intro rate and fee of 3% then a BT fee of up to 5%, min: $5. |
20.24%, 25.24%, or 29.99% (Variable) |
Apply Now Rates & Fees |
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0% Intro APR for 15 months
This card allows new cardholders to save money with an introductory 0% interest rate on new purchases and balance transfers for the first 15 months of account opening. After the introductory period, a 20.49% - 29.24% variable rate will apply. Balance transfers made within the first 60 days of account membership will be charged a balance transfer fee of either $5 or 3% of the amount of each transfer. After 60 days, that balance transfer fees increases to either $5 or 5% of the amount of each transfer, whichever is greater |
20.49% - 29.24% (Variable) | Apply Now |
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0% intro APR for 21 months
0% intro APR for 21 months from account opening on purchases and qualifying balance transfers. 18.24%, 24.74%, or 29.99% variable APR thereafter; balance transfers made within 120 days qualify for the intro rate, BT fee of 5%, min $5. |
18.24%, 24.74%, 29.99% (Variable) |
Apply Now Rates & Fees |
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0% for 18 months on Balance Transfers
New cardholders enjoy 0% introductory APR on all balance transfers for the first 18 months of account opening. After that, the variable APR will be 19.24% - 29.24%, based on your creditworthiness. Balance transfers do not earn cash-back rewards and are charged an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first four months of account opening. After that, the fee will be 5% of each transfer (minimum $5). |
19.24% - 29.24% (Variable) |
Apply Now Rates & Fees |
2. Hotel Credit Card
Hotel credit cards provide special benefits you can't get with most other types of travel cards. For starters, you'll often get elite status without needing to book several stays with that hotel brand. Depending on the card and hotel rewards program, benefits can include free room upgrades, late checkout, welcome amenities, free breakfast and more. You can also earn rewards you can use directly to book hotel accommodations, and many come with large welcome bonuses offers when you sign up.
But what makes hotel cards so valuable is that many offer a free anniversary night's stay every year when you redeem your card membership and pay the annual fee. In most cases, the value of the free night far outweighs the fee. So even if you don't travel often, the free night benefit is enough to justify paying the card's annual fee every year.
As you search for the right card, consider going with a hotel brand that you enjoy staying with. Alternatively, you could open multiple hotel credit cards and take advantage of free nights at more than one brand's properties.
Related Article
The 5 Best Hotel Loyalty Rewards Programs
3. Airline Credit Card
Airline credit cards offer some unique benefits, but for a specific airline instead of a hotel brand. Common airline credit card perks include priority boarding, discounts on certain in-flight purchases and free checked bags. The free bag benefit alone can make an airline card worth it, especially if you regularly travel with a partner or family. In many cases, you'll get a free checked bag for you and others on your itinerary.
Airline cards also offer you the chance to rack up points and miles fast, which you can use to earn award flights more quickly. However, most airline credit cards don't have standout rewards programs, so it's generally best to use them for their airline-specific benefits.
Take a look at your local airports and figure out which airlines use them as a hub. You can generally find more flights and better deals on an airline if you live near one of its hub airports.
Compare Southwest Consumer Credit Cards
| Credit Card | Annual Fee | Intro Bonus | Perks | Learn More |
|---|---|---|---|---|
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$69 |
50,000Southwest Rapid Rewards Points
Earn 50,000 bonus points after spending $1,000 on purchases in the first 3 months from account opening. Dollar Equivalent: $700 (50,000 Southwest Rapid Rewards Points * 0.014 base) |
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Apply Now |
Southwest Rapid Rewards® Premier Credit Card |
$99 |
50,000Southwest Rapid Rewards Points
Earn 50,000 bonus points after spending $1,000 on purchases in the first 3 months from account opening. Dollar Equivalent: $700 (50,000 Southwest Rapid Rewards Points * 0.014 base) |
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This product is currently not available via Slickdeals. All information about this product was collected by Slickdeals and has not been reviewed by the issuer. |
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$149 |
50,000Southwest Rapid Rewards Points
Earn 50,000 bonus points after spending $1,000 on purchases in the first 3 months from account opening. Dollar Equivalent: $700 (50,000 Southwest Rapid Rewards Points * 0.014 base) |
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Apply Now |
4. Transferable Rewards Credit Card
While hotel and airline credit cards offer special benefits you can use with specific hotel brands and airlines, they don't offer a ton of flexibility. If you want to diversify your credit card rewards even more, consider a card with transferable rewards.
There are a handful of rewards programs like this, including:
- Amex Membership Rewards
- Capital One Miles
- Chase Ultimate Rewards
- Citi Thank You Rewards
Travel credit cards tend to offer a ton of flexibility with your rewards. You may be able to book travel through the card issuer's travel portal, book with other travel providers and get a statement credit or even transfer your rewards to another loyalty program.
Chase, for instance, has a list of several airline and hotel rewards programs you can transfer your rewards to. Because many airlines and hotel brands offer dynamic pricing with their rewards programs, you could potentially get a lot more value out of your transferable points than you could with points and miles from a co-branded credit card.
To find the right transferable rewards credit card, take a look at the different programs and determine which offers the best level of flexibility for you. Also, consider each card's welcome offer, rewards rates and travel-related perks.
The Bottom Line
Carrying multiple credit cards at the same time can come with a lot of benefits, especially if you have different types of cards. This strategy can allow you to take advantage of bonus rewards rates on more of your top spending categories, as well as diverse benefits that you can't necessarily get with just any credit card.
Be careful, though. The more cards you add to your wallet, the harder it is to keep them organized and to track your transactions. Make sure you have a system in place to ensure that you always pay your bills on time and in full to avoid late fees and interest charges.
Ben Luthi
Ben Luthi is a personal finance and travel writer and credit card expert. He has a degree in finance from Brigham Young University and worked in financial planning, banking and auto finance before writing full-time for NerdWallet and Student Loan Hero. Ben is now a full-time freelance writer and enjoys traveling and spending time with his two kids. His work has appeared in several publications, including U.S. News & World Report, USA Today, Money, Success and Slickdeals.
