It’s no secret that the key to maximizing rewards is to keep multiple credit cards in your wallet and reach for the one that offers the highest earning rate on your purchase. But what if you don’t want to bother fumbling through a deck of cards every time you have to pay? What if you want to keep it simple and use one card for everything?
Here’s how to decide whether using a single card for everything is a good fit for you and how to choose the best stand-alone credit card for your situation.
[Read: Best Credit Cards.]
Is Having Only One Card a Good Idea?
“Ideally, most consumers can benefit from having two or three cards,” says Scott Mayerowitz, travel expert and founder of GlobeTrotScott Strategies.
For some people, carrying a single credit card can be a good idea as it’s “more simple,” says credit card expert Jason Steele. “But to maximize your rewards, you need to have multiple cards.”
The reason why any credit card rewards expert you ask will provide a similar answer is because no one credit card has it all. Especially if you spread your monthly expenses across multiple categories, having more than one card makes sense. It can help you maximize rewards on every purchase and enjoy all kinds of perks suited to your needs — from lounge access to free shipping.
But managing numerous cards can be demanding. “Many folks aren’t willing to have multiple monthly bills,” says Mayerowitz. There’s also the legwork required to make a multicard rewards strategy work — you have to remember to pick the right card every time to ensure maximum benefits. And having too many credit cards may lead to overspending and incurring credit card debt if you lack financial discipline.
If the prospect of juggling multiple cards makes you dizzy, sticking with one can be the way to go. The key is choosing that one-and-only card wisely.
[Read: Best Credit Cards for Excellent Credit.]
How to Pick the Best Stand-Alone Credit Card for You
“You want a strong combination of rewards and low fees, as well as valuable benefits,” says Steele.
Since you’ll have to reach some sort of compromise by sticking with a single card, Mayerowitz suggests using one of the following strategies when picking a card:
— You can choose a card with a good return rate on the merchant category you spend the most on — for example, gas, groceries, travel or dining out.
— You can go with a card with a solid flat rate of return on every purchase. The best flat-rate credit cards offer at least two points per dollar spent on all purchases.
— Or, if you’re loyal to a specific airline, hotel chain or retailer, you can consider signing up for its co-branded credit card.
“Consumers should focus on the annual fee and rate of return,” says Mayerowitz. “Pick the simplest card.”
When exploring card options, consider the following:
— Cash back or rewards. Choose the card with the highest rates in the categories that matter the most to you.
— Annual fees and other fees. Premium cards usually charge an annual fee, but offer generous perks. And if you’re planning to travel overseas, make sure your card pick doesn’t charge foreign transaction fees.
— Benefits and statement credits. Some cards are worth their annual fee alone just by the perks they offer. If you travel often, a card that offers lounge access or free checked bags may make sense. If you’re a homebody, a card that offers streaming service credits or free shipping from your favorite retailer may be a better fit.
[Read: Best Credit Cards with High Credit Limits.]
The 5 Best Stand-Alone Credit Cards to Have in Your Wallet
The following picks offer generous rewards across multiple categories, good benefits and charge no foreign transaction fees.
1. Chase Sapphire Preferred® Card
This travel card comes with an affordable annual fee, elevated rewards and decent benefits. But where the Chase Sapphire Preferred® Card truly shines is in its rewards redemption options. (See Rates & Fees)
— Five points per dollar on travel purchased through Chase Travel?
— Three points per dollar on select streaming services, online grocery purchases, takeout and dining, including eligible delivery services
— Two points on other travel purchases
— One point on all other purchases
— The card has a $95 annual fee, but offers $50 in statement credits each account anniversary year for hotel stays purchased through Chase Travel?, essentially bringing down the cost to $45 per year.
— Travel benefits, including trip cancellation and interruption insurance, auto rental insurance and lost luggage insurance
— Your Ultimate Rewards points are worth 25% more when redeemed through Chase Travel?.
— You can also transfer points to any of Chase’s 14 travel partners.
2. Capital One Venture Rewards Credit Card
A strong flat rate, flexible redemption options and beneficial travel perks make the Capital One Venture Rewards Credit Card
one of the best stand-alone cards. (See Rates & Fees)
— Unlimited 2 miles per dollar on every purchase
— Unlimited 5 miles per dollar on hotels, vacation rentals and rental cars booked through Capital One Travel
— Up to a possible $120 credit for Global Entry or TSA PreCheck
— Redeem your miles for travel purchases — or through Capital One Travel.
— You can also transfer miles to any of Capital One’s more than 15 travel transfer partners.
— $95 annual fee
3. American Express® Gold Card
If groceries eat up a significant chunk of your budget and you dine out frequently, the American Express® Gold Card
can be the ideal single-card companion. (See Rates & Fees)
— Four points per dollar on purchases at restaurants worldwide, up to $50,000 per calendar year, then one point
— Four points per dollar at U.S. supermarkets, up to $25,000 per calendar year, then one point
— Three points per dollar on flights booked directly with airlines or on AmexTravel
— Two points per dollar on prepaid hotels and other eligible travel purchases booked through AmexTravel
— One point on other eligible purchases
— $120 annual Uber Cash credit
— $100 annual Resy credit
— $325 annual fee
4. Bank of America® Premium Rewards® Credit Card
A strong flat rate plus a higher rate on travel and dining for members make the Bank of America® Premium Rewards® credit card
a great fit for those looking for both simplicity and generous rewards.
— Unlimited two points per dollar on travel and dining purchases
— Unlimited 1.5 points per dollar on all other purchases
— Earn 25% to 75% more points on every purchase if you’re a Bank of America Preferred Rewards member.
— Up to $100 in airline incidental statement credits annually
— TSA PreCheck or Global Entry statement credits of up to $100, every four years
— Travel insurance protection
— $95 annual fee
5. Citi Strata Premier? Card
A good rewards card that comes with elevated points on dining, groceries and gas stations is hard to find. Enter the Citi Strata Premier? Card
, which offers exactly that and then some. (See Rates & Fees)
— Ten points per dollar on hotels, car rentals and attractions booked through CitiTravel
— Three points per dollar on air travel and other hotel purchases, restaurants, supermarkets, gas stations and EV charging stations
— One point per dollar on all other purchases
— $100 annual hotel benefit
— $95 annual fee
Bottom Line
Sticking with just one credit card can help manage your spending and streamline your rewards strategy in the long run. The key to maximizing a single-card strategy is to pick a card that aligns with your spending habits and lifestyle — and use it on every purchase you make.
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If You Could Only Have One Credit Card, Which One Should It Be? originally appeared on usnews.com
