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Whether you’ve got one rewards card or an overstuffed, George Costanza-style wallet with cards in every slot, it’s worth taking time at least once a year to reevaluate which credit cards are worth keeping. Doing so helps ensure your wallet aligns with your spending habits, travel goals, and your ability to actually use the perks and benefits that come with the cards you carry.
In this guide, we’ll highlight a handful of factors to consider to make evaluating and rebalancing your wallet a piece of cake.
Take Inventory of Your Credit Cards and Benefits
Your first step is to take inventory of your cards. Empty out your wallet — and your sock drawer if you’re someone who keeps seldom-used cards tucked away.
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.
From there, start by making sure your cards’ 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’t have a card that offers bonus rewards in that category, that’s an easy problem to identify and solve.
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 credit? Do you still care about earning Medallion Qualifying Dollars through credit card spending now that you’ve moved from a Delta hub to a United one? And what about those credit card free night certificates you never got around to redeeming last year?
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.
It’s also a helpful way to remind yourself of the benefits you still value but may have forgotten about.
What Type of Points or Miles Do You Earn?
In addition to benefits, the cards you use for purchases determine the type of points or miles you'll earn. If you aren't familiar with all the options, we highly recommend you read our guide to the different types of reward points.
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’s loyalty program. That’s why we generally consider transferable points to be the most valuable.
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.
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’s currency. These cards can make it much easier to rack up free flights and hotel nights.
- Best Hotel Rewards Credit Cards
- Hotel Credit Cards With Free Nights
- Best Airline Credit Cards With Annual Fees Under $100
- Comparison of Premium Airline Credit Cards
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’s real value in earning cash rewards, since you can use them however you choose.
- Our Favorite Cash Back Credit Cards With Welcome Bonuses
- Comparing American Express Cash Back Cards
- Earn Up to 3.5% Cash Back on All Purchases With No Annual Fee
There’s no one-size-fits-all answer when it comes to choosing the right type of card. In most cases, you’re better off diversifying your rewards. That said, it’s helpful to have a plan for how you want to use your rewards before applying for a new card.
Related: How to Plan a Long-Term Credit Card Strategy
Maximizing Card Benefits
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.
It’s important to identify which perks you actually value and which you can live without. There’s no sense in carrying a card if you’re not taking advantage of what it offers.
That said, there’s a caveat. Some benefits are valuable even if you don’t use them often, or ever. Things like free roadside assistance, travel protections, and extended warranties fall into this category. You may not need them regularly, but they can be incredibly useful when you do.
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 but never use the lounge access perks through Capital One Lounges or Landings — or are generally unable use the entirety of its $300 travel credit. 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.
- Best Credit Cards for Airport Lounge Access
- Earn a Hotel Free Night Award With These Credit Cards
- Comparison of Premium Travel Rewards Credit Cards
Take a close look at the benefits you’re paying for and whether you use them enough to justify the cost. And if there’s a perk you want but don’t currently have, that’s a good sign it might be worth adding another card to your wallet.
Managing Annual Fees
Unless you’ve built a portfolio entirely of cards with $0 annual fees, you’ll also want to consider the cost of maintaining your wallet each year. Depending on which cards you hold, those fees can add up quickly.
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’s an easy case for keeping it.
The American Express Platinum Card® 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.), which easily outweighs the $895 annual fee (Rates & Fees).
But if you’re not using all or most of what the Platinum Card® offers, it’s worth asking what you’re really paying that $895 annual fee for.
The bottom line is that you’ll want to build a credit card portfolio that works for you at a price you’re comfortable paying. If you can’t make the math work, it’s worth reevaluating a card’s place in your wallet.
This is also a good reminder not to overlook no-annual-fee cards. Some $0 annual fee options can meaningfully boost your earning power when paired with a card that carries an annual fee.
For example, if you pair a specific trio of Citi cards together, 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 you’ll rack up, you can book a lot of award travel or cash out for a sizable check.
Deciding When to Add or Remove Cards
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’s focus on the first two.
This is also a good time to check your credit report to make sure you haven’t 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.
When to add a card to your wallet
The decision to add a card to your wallet shouldn’t be made without some forethought. Yes, earning a sign-up bonus is always nice, but it’s worth having a plan before you apply.
Beyond the bonus, a new card should fill a specific need. Whether that’s a perk you’re after, like airport lounge access or a complimentary checked bag on your airline of choice, you should be able to clearly answer the “why” before opening a new credit card.
Another factor to consider is whether you can realistically get approved. Banks have application rules and restrictions you’ll need to navigate, which can make it harder to get a new card, especially if you’re applying too frequently.
Another piece of the puzzle is the cost of an additional annual fee, assuming you’re not applying for a no-annual-fee card. For example, if you already have the Platinum Card® and then apply for The Business Platinum Card® from American Express, you’re suddenly looking at $1,790 in annual fees. If your income can’t comfortably support that, it can sting. At that point, the risks start to outweigh the rewards, both literally and figuratively.
It’s also worth noting that timing matters. Taking advantage of limited-time offers is one of the best ways to earn a large stash of points, miles, or cash back. Here’s a look at the offer history for four major issuers:
- American Express Cards: Best-Ever Offers and When You Should Apply
- Capital One Credit Cards: Best-Ever Offers and When You Should Apply
- Citi Credit Cards: Best-Ever Offers and When You Should Apply
- Chase Credit Cards: Best-Ever Offers and When You Should Apply
When to remove a card from your wallet
Just because a card makes sense today, or did a few years ago, doesn’t mean it will continue to align with your wallet or goals down the road. And that’s okay. There’s nothing wrong with moving on from a card.
That said, when and how you do it matters. You’ll want to stay on good terms with the issuer and avoid forfeiting any rewards you’ve earned. Here are three things to consider before canceling a card:
- Have you held the card for at least a year? If not, issuers may claw back your sign-up bonus or restrict you from opening cards in the future.
- Can you downgrade your card to a no- or low-annual-fee version? This can reduce your costs while keeping the account open, preserving your credit history and relationship with the issuer.
- Have you asked for a retention offer? Some issuers will offer incentives to keep your card open for another year, which can change the math on whether the annual fee is worth paying.
In other words, don’t be afraid to move on from a card if it no longer works for you. Just make sure you’re doing it the right way. Otherwise, you risk damaging your relationship with issuers, and that can cause problems down the line.
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.
Maintaining and Reviewing Your Portfolio
Evaluating your credit card portfolio and overall financial picture is something you should do at least once a year. That said, you’ll likely benefit from reviewing it more frequently, possibly on a quarterly basis. Doing so helps ensure you’re on track to meet or exceed your travel and financial goals.
Plus, it’s a good opportunity to confirm that you’re keeping your accounts active.
As your situation changes, your strategy should, too. Maybe you land a job that requires frequent travel. That’s a chance to pivot and make sure you’re 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.
The credit card and travel landscape changes often
It’s 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.
And as things change, your approach should change with them. Staying up to date can help you reward your spending more effectively and get the most value from your points, miles, or cash back.
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’re using the rewards and credits you’ve earned. There’s a lot more to AwardWallet than just the blog.
Don't have an AwardWallet account yet? Sign up for free and track unlimited rewards programs and travel plans.
Related: What Perks Does AwardWallet Plus Provide?
Final Thoughts
One of the best things you can do from time to time is evaluate what’s 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.
For rates and fees of the cards mentioned in this post, please visit the following links: American Express Platinum Card® (Rates & Fees)
I pay over $4000 in annual fees every year. I have lots of coupon cards: AMEX Platinum, Platinum Business, Hilton Aspire, Hilton Business, Venture X, CSP, CSR, CSR Business, Hyatt, Marriott, IHG, Citi Strata Premier, AA, Alaska Business. I needed to get a handle on it, so I wrote a very complex spreadsheet which is excellent for keeping track of everything from cell phone, Lyft, Uber, dining, Hilton credits, FNCs, etc. It also has a sheet called Card Totals which brings in all my monthly entries and gives me a recommendation to keep or cancel. It’s pretty sweet, and I rarely let any credit expires any more (save for the ones I really don’t care about).
Wow! So with that many cards I’d imagine you’re signed up with loyalty/membership programs to just about every airline/hotel/rental car company you can think of, right? How do you ever use them enough to gain enough to redeem? Or does that all go back to how you’ve mentioned partners and transfers?
I used to think of credit cards as a necessary evil, and I avoided using them at all costs. At the same time, I knew I wanted to travel, especially with my kids (which can be expensive), and never understood how people managed to travel with their families and make it look so easy. I totally understand now, thanks to a lot of the tips in this blog. My points/miles balances have skyrocketed since I started using my cards on nothing more than normal spend as opposed to putting everything on my debit card. One question though: how many cards is too many cards to feasibly juggle? Or do you collect the cards and their signup bonuses, and then enter them into a rotation? What’s the best way to maximize the benefits of your portfolio?
Hi Lauren, it’s hard to answer with how many cards is too many. I’d recommend building up gradually and trying to find cards that give you long-term value that is greater than the annual fee. I currently “juggle” around 15 open cards, but I got to that point over a period of around 12 years. We’ll try to put together more content on this. Thanks for the question.
Superficially, cards with annual fees don’t seem to be worthwhile but our family has gotten so much value out of these cards over the years that it would be short-sighted not to have them. That being said, I have at least one card that I probably should cancel
I personally find it easy to look at the fees first and compare it with my spending habits. It also helps to have cards that complement each other, with some having better travel benefits while others can be used to make purchases in certain categories.
Identifying the areas where you spend the most is a must for everybody, one useful article.
Any recommendations on apps to track your credit card and points?
Could you elaborate on it?
I love this concept of a credit card portfolio, which, I hadn’t considered before. I’m definitely one of those people that looks mainly at fees (aiming for none) and then try to get the bonus sign up points and then. I never really made a plan or viewed my credit cards as I would my investment portfolio, but realize I really should. Thanks for all the great info on how to do this!
great article. love how you breakdown the card into 3 categories, makes it easy to differentiate.
New to the points and miles game so this is useful in helping me plan my applications. Thanks!
Excelente info!
Great info! Thanks!
Great summary, I’ve previously only been interested in cashback schemes on credit cards but having finally used a lounge pass offer via my AMEX i can totally see the value in them. Well worth considering before choosing a new card.
Good point on evaluating changes in requirements on any CC. I was using a Sam’s Club card for gas purchases because of the 5% cash back annually, and I didn’t have to keep paying for Club membership (100 miles away, so not convenient to use). But then they changed the rules to require renewing the Sam’s Club membership, after a full year of purchases that earned almost $200. It is no longer attractive so I’ll be cancelling that card ASAP.
That rewards credit thou, especially Amex gold….I wish it was easier.
I hope this is not the year of major AF increases across the board. Not a good start with the CSR increase.
My process is a bit simpler. For regular spend, I try to maximize my cashback. Whenever I am getting a bit low on miles, I apply for a card with a good miles bonus, meet the minimum spend, then go back to maximizing cashback
Great timing with the CSR change. haha
Great write up. I always review my charge card “portfolio” at the beginning of the year. So timely for me!
I’ve finished reading the whole article and right now I want to go to the Maldives xD, btw nice overview thank you!
There are just so many variables to assess. This article does a good job of breaking down each component.
Just in the nick of time to assess renewing my Amex Platinum
Great article.
I hope credit card companies will introduce more categories for bonus miles, such as department stores, gyms, online shopping, etc.
Thank you. I don’t review often enough. I tended to primarily use my AMEX SPG card as my everyday card because it transferred points to airlines with a 25% bonus when transferring 20,000. I am less excited by the Marriott card so considering others. Do you value Chase or AMEX points as highly as Marriott for transferring to airlines? if so I may change.
We value all four of the bank transferable currencies (Membership Rewards, Ultimate Rewards, ThankYou Rewards, and Capital One Miles) higher than Marriott points unless you intend to transfer to an airline that only Marriott supports.
We’re using free Hilton nights at Boca Raton Beach Club for my birthday this year. Connecting them two free nights with our Hyatt cards at the Confidante in Miami Beach will give us another area of the country to explore in very nice hotels.
They may not be the most valuable nights, but they are very nice. When connected with free airfare, I think it’s a great way to celebrate my birthday in sun and sand!!
I’m sure you all are working on a post about this, but sadly the time has come to reevaluate the Sapphire Reserve card.
Very helpful as I have accumulated a number a cards now in this game and am trying to get a handle on which card provides the optimum benefit at any given situation – while tying it all in with the long range goals.
Do you have any good card offers that can be switched with my current cards, rather than applying? I would like to beat my 9.9% VISA which offers a cash bonus. High $25k credit limit or greater would be nice so as to calculate less credit score impact. Please show a worthwhile offer that I can use rather than CC offers for startup households.
Your Visa returns 9.9% cash back?
Yes, 1-2- or 3%. I get hundreds back.
My priority definitely changed over the years. As cards are getting harder to churned, my priority slowly shifted toward flexible points or even just cash back.
Definitely a good idea to reevaluate my cards as well.
This is a good post. It reminds us all to not be lazy and just let cards rollover year to year. It is also sometimes worthwhile to keep a not great fee card to upgrade and/or start a young student’s credit history.
Thanks for the helpful reminder. Useful article!
Good advice but the points game is getting harder everyday
This would allow for a greater ability to organize points and get the most out of the points accumulated. I could use a better system like what this scheme provides.
Would you like to share what system you have in mind?
Very informative. Thanks for summarizing it!
I determine the value of the benefits in relation to the annual fees.
great overview, thank you.
Good to know! Thanks!!
Thank you for presenting the thought exercise to show us how to analyze / quantify the benefits.
Something that should be thought of all year too. I am sure some are like me and have paid an annual fee already but will downgrade. I don’t think that we always think about downgrading. I am glad to be reminded of that as an option.
I’m pretty picky about signing up for cards that I don’t think I would cancel any. I only get cards that I think will help me in the long run. I am sure some day I will narrow it down to fewer and fewer cards as my age advances. Will you all keep so many cards in your wallet as you get older or will get fewer to keep it easier?
Very interesting article thanks. I’ll be reviewing my options.
Great overview. I need to relook at the variable redemption benefits of my cards
Very useful guide. Thanks…
Good point. It’s time to review some costs and benefits.
Thanks for reminding me to do that sear upgrade now.
Very informative article. I always reevaluate each of my credit cards when the annual fees post. I said goodbye to my CITI Thankyou Premier last year and replaced it with a Chase UA Explorer credit card.
I think all my cards are keepers. Of course it helps that the fees of most were waived due to my deployment. Always good to reassess every once in a while.
I’m glad you can get the fees waived.
And, thanks for your service.
Nice summary. Thanks!
You may also want to consider what impact keeping or getting rid of a particular card will have on your FICO score.
100%, it’s one of the reasons we recommend downgrading cards where possible rather than canceling outright.
How do I update my email to my new email address?
Your AwardWallet address? Or one of your rewards accounts?
Lot of good aspects to review yearly! Thank you for the reminders ?
Good advice. I definitely need to do this w/r/t my premium cards given all the changes.
Some cards make it difficult to get the rewards credit
Always trying to optimize, and with a limited travel plan for 202, the CSR card might not make it beyond this year’s renewal date.
That restaurant at the Conrad Maldives looks amazing!
Good to know, thanks!
Very well written article. Thanks!
Good overview – we focus on fees as a starting point, and don’t see a reason to change in 2020