To earn a great amount of cash back, the idea is typically you need a lot of cash back credit cards. But when does adding extra credit cards not really add more credit card rewards compared to the credit cards you already have. Because some people don’t want to manage a lot of credit cards. So we find out if adding more cards is really adding a lot of extra cash back to your wallet.
00:00 – start
00:32 – Sweet Spot?
1:14 – Spending Breakdown
2:05 – Single Card Option
2:47 – 2 Cards
3:36 – 3 Cards
4:31 – Adding A 4th Card
6:00 – Improving Gas Earnings
6:39 – Improving Dining
7:36 – 5% Rotating Credit Cards
9:14 – Final Thoughts
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39 comments
I thought the savor one card didn’t have an annual fee. Did something change?
As far as pure cash back, you're right. I have no interest in carrying more than 3 cards. My wife can hardly figure out with 2 cards which to use and thinks I'm insane. That said I would think most people that are watching this are also churning, valuing flex currencies over cash back, and valuing perks and coupon books. So it really muddies the waters and makes for a very YMMV situation.
I’m really glad you made this video because I’m debating my strategy for the next year. I have an Amex trifecta with the CS Plat, gold and BBP. The cash redemption rate was dropped so I don’t know how profitable it will be for 2021.
What strategy would you recommend for about 20k in dining and 8k in grocery spend. (I help support my family with expenses)
7 or 8 cards? Oh Dustin, you are adorable 😂
I'm at 19 credit cards and… still feel like I have room for more, lol
I found this video really interesting. I prefer transferable currency over cashback but this setup is stellar. If I was to switch to cashback I'm coming to you. Nice one man. Take care and keep moving forward!
I really liked the real examples.
I am on the Chase Trifecta and my P2 uses the Amex Gold.
Excellent video!
As many as spend categories you have where you get 5% back
■MY List for Optimized Spend Cashback Cards:
●5 Carry Cards:
• Citi DC – 2% Everything
• USAA Cash Rewards – 5% Gas
• Citi Custom Cash – 5% Groceries
• Chase Freedom Flex – 5% Rotating, Chase Travel Portal, 3% Drugstores, Dining. Free Phone Insurance
• US Bank Cash+ – 5% 2 options, 1st Fast Food
●4 Other cards for Online/Auto/Rare stuff that doesn't normally require me to carry the card:
• Amazon Prime Store – 5% Amazon (Requires Amazon Prime $119 AF)
• BoA Cash Rewards – 3% Online Shopping
• Chase Freedom Flex – 5% Rotating, Chase Travel Portal, 3% Drugstores, Dining. Free Phone Insurance
• US Bank Cash+ – 5% 2 options, 2nd TV/Internet/Streaming
It is worth opening a new card for an extra $30 a year, thats free money but its more worth because its expanding my Credit history and increasing my CL and lowering my utilization.
Totally agree after 4 cards, I noticed credit cards overlapping in categories. I don’t like to be in one ecosystem; I like to spread the wealth among different issuers. I recently narrowed my cards to four everyday spending: Amex Blue Cash Preferred, Verizon Visa Signature, Wells Fargo Propel andNFCU Flagship Visa.
I have three rotating category cards-Freedom, Citi Dividend, and Discover. I use Citi Custom Cash as filler card if there is not a rotating category. Usually grocery, resturants or travel. My 2% cash back cards are Citi double cash and Blue Business. The good part about this set up is no annual fees. This significantly boost the ROS of a cash back set up. I could use 1 or two more cash back cards with no annual fees. I hope to apply for the Vantage-West Card Visa – AZ residents soon, they have 5% fixed for wholesale clubs with no annual fee.
Good video, Dustin 😀
I feel this video. I just got rid of two 5% cards, one 4% card, Now I have two primary cards only and two secondary cards. It feels so much better, not having to manage all this.
I have 4 cards for everyday use:
Amazon Prime card: I do most of my shopping for gifts, household items, sometime groceries (Whole Foods) online
Sapphire reserve: dining, travel
Freedom Unlimited: groceries (5x for first year), everything else
Apple: purchasing Apple products ( I do it quite often for work)
2 cards to rotate in the future:
WF cash wise- catch all card
Amex blue cash preferred- groceries
I’m definitely thinking of applying for freedom flex later this year. Right now, for my current lifestyle, these are the only cards I need. Im sure there’s room for improvement, but I don’t want to carry too many cards haha!
COWBELLLLLL
I think I'm at about 12 and 6 for my wife. I'm mostly doing bonuses and use 5 cards regularly.
Factor in sign up bonuses and this equation changes rapidly.
See, your point to "marginal increase" is why I won't get the Citi Double Cash. I have QuickSilver and Chase Freedom Unlimited so already two ways to get 1.5%, Propel, Discover, Citi Thank You Rewards Plus; so I'm well rounded with cash back options annually. Using the listed categories:
Dining: 3% Propel and CFU and 5% quarter Discover
Groceries: 2+% or Citi Rewards +
Gas: 3% Propel and 5% rotating Discover and 2+% or Citi Rewards + if American Express isn't accepted
Travel: 3% Propel
Entertainment & Non-bonus: meh I have to settle for 1.5%
My average base being 3% means I couldn't give a flip about the 'extra' .5% I'm missing out on. I love the comment by Rezalion – the minimum point redemption requirements. Take care, sir. Best to you and your family, Mr. Dustin.
I think I have a total of 20 cards tbh. Luckily, I don’t have spending issues. Lol. But I’m looking to add more in the future. Thanks for the vid, D.
Meh, my 1st personal Amex card (vanilla plat) is ending up being my 1st actual cash back set up (aside from a couple grand from csr pyb) since i decided to jump on that Schwab plat 10x. Gonna mill 175k from the vanilla 10x before the rate drops in September, should cover both a.f's + ~950 cash and ~ 150k mr at the end of msr. Not bad
I have 16 Major Credit cards and 1 Biz Amex Credit card
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Don't forget the one off categories with potentially high enough spend to warrant a separate card. US bank cash plus (or clone) for internet, tv, utilities and BoA cash rewards gas category includes the heating oil for my house. Also keep in mind if the bulk of your grocery spend is at a nongrocery store (Walmart, target, wholesale club) getting a card for the grocery category might not move the needle that much.
25 years ago, I had about 10 or 12 cards. That was when you had to write checks and mail them – what a pain 🤦♂️ Then I cut back to only two cards. Last year I decided to get cards that were for specific rewards as you've described in this video and was up to 5 cards. I've started getting more now just for sign up bonuses and to add to my available credit limit. I'll probably be back at a dozen or so next year 🤣
Your analysis is unique, grocery category tend to be important to families but not to young generation who spend on eating out or food delivery, which now exceeded buying groceries.
I've got room to grow, but some cards I like to rotate every 24 months.
i've been on team cashback a few years now and yes, i find 4 was all i needed. i'm transitioning to travel. i'll be able to get better than 1cpp redemption rate that way.
Great video
Good video! I like seeing the numbers broken down. You demonstrated the practical nature of the diminishing returns when adding more cards after a certain point. I just have three cards in my wallet: NFCU CashRewards (1.5% on all spend), SavorOne (3% groceries/dining/entertainment), and I just got the Citi Custom Cash to be my 5% gas only card. I wish my NFCU card was a 2%, but, I'm not sure it's worth opening up something like the Citi DoubleCash just for that extra 0.5% difference. Besides, the convienence of having my main spend card and bank all in one place is nice. I think I have a pretty rounded trio of cards and I'm not sure what other card(s) would be beneficial to add. I don't really want to deal with rotating categories either.
Plan on getting many credit cards in the future because of the bonuses. However, I’d never pay more than 2 annual fees in a given year
My Credit Cards:
Bank of America Travel Rewards
American Express Gold
American Express Blue Business Plus
American Express Blue Cash Everyday
Chase Freedom Flex
Citi Double Cash
Citi Custom Cash
Pentagon Federal Cash Rewards
Goldman Sacs Apple Card
US Bank Cash Plus
Yes, with a $200 spend bonus, it is worth getting another card.
Love the math you do.
Well put 👍🏿 😎🙏 I was literally just thinking about all you spoke about …always appreciate the truth broken down with great data to back it up keep up the great work my man.
Im not averse to more cards at all and continuing to seek out more, so #BringEmOn. Sitting around 15 active ✌️
This is a very thorough analysis. I like to factor in ease of redemption if I'm going for an extra %. I hate $25.00 minimums. The Citi Custom Cash has quickly become a new favorite for me.
Can't make the maximum with less that 7, all cash back. Average return, net of the $95 fee, is 4.35% in a normal year. You missed the important number, net % earned.