Your first step is to take inventory of your cards. Empty out your wallet \u2014 and your sock drawer if you\u2019re someone who keeps seldom-used cards tucked away.<\/p>\n
For each card, note the annual fee, how many points you earn on purchases, and the headline perks, such as travel or dining statement credits, free hotel nights, elite status credits, and lounge access.<\/p>\n
From there, start by making sure your cards\u2019 earning rates and statement credits align with your spending habits. Look for gaps that could be fixed by swapping one card for another. For example, if you spend a ton on groceries but don\u2019t have a card that offers bonus rewards in that category, that\u2019s an easy problem to identify and solve.<\/p>\n Next, focus on travel-related perks. For many people, this is where you can trim some fat. Do you really need four cards with a Global Entry or TSA PreCheck<\/a> credit? Do you still care about earning Medallion Qualifying Dollars<\/a> through credit card spending now that you\u2019ve moved from a Delta hub to a United one? And what about those credit card free night certificates<\/a> you never got around to redeeming last year?<\/p>\n By the end of this process, you should have a clearer picture of where you might benefit from adding a new card and which existing perks may no longer justify the annual fee.<\/p>\n It\u2019s also a helpful way to remind yourself of the benefits you still value but may have forgotten about.<\/p>\n In addition to benefits, the cards you use for purchases determine the type of points or miles you'll earn<\/a>. If you aren't familiar with all the options, we highly recommend you read our guide to the different types of reward points<\/a>.<\/p>\n At a high level, the four main types of rewards are airline miles, hotel points, cash back, and transferable bank points. The last category is often a mix of the other three, though your options will vary depending on the bank\u2019s loyalty program. That\u2019s why we generally consider transferable points<\/a> to be the most valuable.<\/p>\n Cards that earn these rewards come with access to transfer partners, which, when used strategically, can help you get the absolute most out of your points. Whether you want to fly in business class cabins or stay in an overwater bungalow, transferable points can make it happen, often for far less out of pocket than paying cash.<\/p>\n Another option is earning airline miles or hotel points directly. Many loyalty programs partner with credit card issuers to offer co-branded cards, giving you a way to earn a specific program\u2019s currency. These cards can make it much easier to rack up free flights and hotel nights.<\/p>\n You can also opt for cold, hard cash. Cash back cards typically offer rewards as statement credits, checks in the mail, or fixed-rate redemptions for things like gift cards or merchandise. There\u2019s real value in earning cash rewards, since you can use them however you choose.<\/p>\n There\u2019s no one-size-fits-all answer when it comes to choosing the right type of card. In most cases, you\u2019re better off diversifying your rewards. That said, it\u2019s helpful to have a plan for how you want to use your rewards before applying for a new card.<\/p>\n Related: How to Plan a Long-Term Credit Card Strategy<\/a><\/strong><\/p>\n Most credit cards come with benefits. Depending on the card, those perks can range from unlimited airport lounge access to reimbursements of your auto policy deductible.<\/p>\n It\u2019s important to identify which perks you actually value and which you can live without. There\u2019s no sense in carrying a card if you\u2019re not taking advantage of what it offers.<\/p>\n That said, there\u2019s a caveat. Some benefits are valuable even if you don\u2019t use them often, or ever. Things like free roadside assistance<\/a>, travel protections<\/a>, and extended warranties<\/a> fall into this category. You may not need them regularly, but they can be incredibly useful when you do.<\/p>\n You should also focus on the perks that originally drew you to a card. For example, suppose you have the Capital One Venture X Rewards Credit Card<\/a> but never use the lounge access perks through Capital One Lounges<\/a> or Landings \u2014 or are generally unable use the entirety of its $300 travel credit<\/a>. In that case, it might make sense to swap your $395 annual fee Capital One Venture X for the $95 annual fee Capital One Venture Rewards Credit Card<\/a>.<\/p>\n Take a close look at the benefits you\u2019re paying for and whether you use them enough to justify the cost. And if there\u2019s a perk you want but don\u2019t currently have, that\u2019s a good sign it might be worth adding another card to your wallet.<\/p>\n Unless you\u2019ve built a portfolio entirely of cards with $0 annual fees, you\u2019ll also want to consider the cost of maintaining your wallet each year. Depending on which cards you hold, those fees can add up quickly.<\/p>\n The key question is whether each card pays for itself through the benefits it delivers. For some cards, this is a straightforward calculation. If a hotel card with a $95 annual fee gives you a free night certificate each year that you consistently use, that\u2019s an easy case for keeping it.<\/p>\n The American Express Platinum Card\u00ae<\/sup><\/a> is a good example of where things get more complicated. When fully maximized, it can offer over $3,500 in annual credits (Enrollment is required for select Amex benefits.<\/em>), which easily outweighs the $895 annual fee (Rates & Fees<\/a>).<\/p>\n But if you\u2019re not using all or most of what the Platinum Card\u00ae<\/sup> offers, it\u2019s worth asking what you\u2019re really paying that $895 annual fee for.<\/p>\n The bottom line is that you\u2019ll want to build a credit card portfolio that works for you at a price you\u2019re comfortable paying. If you can\u2019t make the math work, it\u2019s worth reevaluating a card\u2019s place in your wallet.<\/p>\n This is also a good reminder not to overlook no-annual-fee cards<\/a>. Some $0 annual fee options can meaningfully boost your earning power when paired with a card that carries an annual fee.<\/p>\n For example, if you pair a specific trio of Citi cards together<\/a>, two of which have no annual fee, you can earn 5X on your top spending category, 3X on airfare, hotels, gas stations, restaurants, and supermarkets, and 2X on everything else. With all the Citi ThankYou points<\/a> you\u2019ll rack up, you can book a lot of award travel or cash out for a sizable check.<\/p>\n After evaluating your wallet, you should have a clear sense of whether you need to add a card, remove one, or stick with what you have. The last option is self-explanatory, so let\u2019s focus on the first two.<\/p>\n This is also a good time to check your credit report<\/a> to make sure you haven\u2019t overlooked any open accounts. Your report will show the age of each account and how much credit you have available, both of which play an important role in your credit score and should factor into your decision about which cards are worth keeping.<\/p>\n The decision to add a card to your wallet shouldn\u2019t be made without some forethought. Yes, earning a sign-up bonus is always nice, but it\u2019s worth having a plan before you apply.<\/p>\n Beyond the bonus, a new card should fill a specific need. Whether that\u2019s a perk you\u2019re after, like airport lounge access or a complimentary checked bag on your airline of choice, you should be able to clearly answer the \u201cwhy\u201d before opening a new credit card.<\/p>\n Another factor to consider is whether you can realistically get approved. Banks have application rules and restrictions<\/a> you\u2019ll need to navigate, which can make it harder to get a new card, especially if you\u2019re applying too frequently.<\/p>\n Another piece of the puzzle is the cost of an additional annual fee, assuming you\u2019re not applying for a no-annual-fee card. For example, if you already have the Platinum Card\u00ae<\/sup><\/a> and then apply for The Business Platinum Card\u00ae<\/sup> from American Express<\/a>, you\u2019re suddenly looking at $1,790 in annual fees. If your income can\u2019t comfortably support that, it can sting. At that point, the risks start to outweigh the rewards, both literally and figuratively.<\/p>\n It\u2019s also worth noting that timing matters. Taking advantage of limited-time offers<\/a> is one of the best ways to earn a large stash of points, miles, or cash back. Here\u2019s a look at the offer history for four major issuers:<\/p>\n Just because a card makes sense today, or did a few years ago, doesn\u2019t mean it will continue to align with your wallet or goals down the road. And that\u2019s okay. There\u2019s nothing wrong with moving on from a card.<\/p>\n That said, when and how you do it matters. You\u2019ll want to stay on good terms with the issuer and avoid forfeiting any rewards you\u2019ve earned. Here are three things to consider before canceling a card:<\/p>\n In other words, don\u2019t be afraid to move on from a card if it no longer works for you. Just make sure you\u2019re doing it the right way. Otherwise, you risk damaging your relationship with issuers, and that can cause problems down the line.<\/p>\n If you want to better understand how banks distinguish between normal behavior and potential abuse, check out our guide to crafting a credit card application strategy<\/a>.<\/p>\n Evaluating your credit card portfolio and overall financial picture is something you should do at least once a year. That said, you\u2019ll likely benefit from reviewing it more frequently, possibly on a quarterly basis. Doing so helps ensure you\u2019re on track to meet or exceed your travel and financial goals.<\/p>\n Plus, it\u2019s a good opportunity to confirm that you\u2019re keeping your accounts active<\/a>.<\/p>\n As your situation changes, your strategy should, too. Maybe you land a job that requires frequent travel. That\u2019s a chance to pivot and make sure you\u2019re earning rewards in the most effective way possible. Or, if annual fees start eating too much into your disposable income, you can address the issue before it becomes a bigger problem.<\/p>\n It\u2019s also worth considering how quickly the credit card and travel landscapes evolve. Changes and new developments roll out frequently, from new cards hitting the market to record-high welcome offers or major devaluations in loyalty programs.<\/p>\n And as things change, your approach should change with them. Staying up to date<\/a> can help you reward your spending more effectively and get the most value from your points, miles, or cash back.<\/p>\n You may also benefit from better tools to track your rewards. We may be biased, but AwardWallet is a great tool for this. Having a clear, centralized view of your points and miles can help you avoid expiration and make sure you\u2019re using the rewards and credits you\u2019ve earned. There\u2019s a lot more to AwardWallet than just the blog.<\/p>\n Don't have an AwardWallet account yet?<\/strong> Sign up for free<\/a> and track unlimited rewards programs and travel plans.<\/p>\n Related: What Perks Does AwardWallet Plus Provide?<\/a><\/strong><\/p>\n One of the best things you can do from time to time is evaluate what\u2019s in your wallet. With that in mind, consider your financial situation, travel goals, and where you spend your money. Having a clear understanding of each will help you manage your wallet more efficiently and effectively.<\/p>\n Page Contents<\/p> Whether you’ve got one credit card or a wallet with cards in every slot, it’s important to take the time at least once a year to revaluate which credit cards are worth keeping. Your spending habits, travel goals, and ability to utilize credit card perks will change over time\u2014and so will the benefits that come with your cards. Here’s our guide to managing the cards in your wallet like a pro.<\/p>\n","protected":false},"author":80,"featured_media":132046,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":"","_wpscppro_dont_share_socialmedia":null,"_wpscppro_custom_social_share_image":0,"_facebook_share_type":"default","_twitter_share_type":"default","_linkedin_share_type":"default","_pinterest_share_type":"default","_linkedin_share_type_page":"","_instagram_share_type":"default","_medium_share_type":"default","_threads_share_type":"default","_google_business_share_type":"default","_selected_social_profile":[],"_wpsp_enable_custom_social_template":false,"_wpsp_social_scheduling":{"enabled":false,"datetime":null,"platforms":[],"status":"template_only","dateOption":"today","timeOption":"now","customDays":"","customHours":"","customDate":"","customTime":"","schedulingType":"absolute"},"_wpsp_active_default_template":true},"categories":[12055],"tags":[12519,12655],"coauthors":[36432,36391],"class_list":["post-41789","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-credit-cards","tag-application-strategy","tag-beginners"],"acf":[],"_links":{"self":[{"href":"https:\/\/awardwallet.com\/blog\/wp-json\/wp\/v2\/posts\/41789","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/awardwallet.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/awardwallet.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/awardwallet.com\/blog\/wp-json\/wp\/v2\/users\/80"}],"replies":[{"embeddable":true,"href":"https:\/\/awardwallet.com\/blog\/wp-json\/wp\/v2\/comments?post=41789"}],"version-history":[{"count":35,"href":"https:\/\/awardwallet.com\/blog\/wp-json\/wp\/v2\/posts\/41789\/revisions"}],"predecessor-version":[{"id":258904,"href":"https:\/\/awardwallet.com\/blog\/wp-json\/wp\/v2\/posts\/41789\/revisions\/258904"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/awardwallet.com\/blog\/wp-json\/wp\/v2\/media\/132046"}],"wp:attachment":[{"href":"https:\/\/awardwallet.com\/blog\/wp-json\/wp\/v2\/media?parent=41789"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/awardwallet.com\/blog\/wp-json\/wp\/v2\/categories?post=41789"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/awardwallet.com\/blog\/wp-json\/wp\/v2\/tags?post=41789"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/awardwallet.com\/blog\/wp-json\/wp\/v2\/coauthors?post=41789"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"a](\"https:\/\/awardwallet.com\/blog\/wp-content\/uploads\/2024\/01\/Ivan-Samkov-Pexels-man-with-credit-card-featured.png\")
What Type of Points or Miles Do You Earn?<\/span><\/h2>\n
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![\"2](\"https:\/\/awardwallet.com\/blog\/wp-content\/uploads\/2024\/01\/Hassan-Nizam-Unsplash-family-by-resort-pool-featured.png\")
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Maximizing Card Benefits<\/span><\/h2>\n
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![\"Bar\/menu](\"https:\/\/awardwallet.com\/blog\/wp-content\/uploads\/2026\/02\/Capital-One-Lounge-JFK-featured.png\")
Managing Annual Fees<\/span><\/h2>\n
![\"a](\"https:\/\/awardwallet.com\/blog\/wp-content\/uploads\/2023\/01\/Woman-holding-credit-card-laptop-pexels-andrea-piacquadio-3784391.jpg\")
Deciding When to Add or Remove Cards<\/span><\/h2>\n
When to add a card to your wallet<\/span><\/h3>\n
![\"a](\"https:\/\/awardwallet.com\/blog\/wp-content\/uploads\/2023\/08\/Andrea-Piacquadio-Pexels-credit-card-family-featured.png\")
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When to remove a card from your wallet<\/span><\/h3>\n
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![\"a](\"https:\/\/awardwallet.com\/blog\/wp-content\/uploads\/2020\/11\/pexels-andrea-piacquadio-3791614.jpg\")
Maintaining and Reviewing Your Portfolio<\/span><\/h2>\n
![\"Man](\"https:\/\/awardwallet.com\/blog\/wp-content\/uploads\/2024\/09\/Credit-Card-Laptop-Featured-Sora-Shimazaki-Pexels.jpg\")
The credit card and travel landscape changes often<\/span><\/h3>\n
Final Thoughts<\/span><\/h2>\n