Why Does It Matter What Credit Cards You Have? (Hint: Your Wallet Might Be Slacking Off)

Why Does It Matter What Credit Cards You Have? (Hint: Your Wallet Might Be Slacking Off)

TL;DR: The right credit card can earn you hundreds (or even thousands) of dollars a year in rewards, travel perks, and benefits. The wrong one?  Could be costing you money—and opportunity.

Most people choose credit cards the way they pick a Netflix show: impulsively, based on a commercial or because someone at checkout offered them a tote bag. But credit cards aren’t just plastic—they’re tools. And when you use them right, they can unlock serious value.

We’ll show you how to choose the best credit card for your spending habits so you can start turning your everyday purchases into real rewards.

Learn how to choose credit cards that work for you.

Category Bonuses: Where the Real Money Is

Most top rewards credit cards offer bonus points or cashback in specific categories. These “category multipliers” are where you can rack up serious value.

Common bonus categories can look something like this:

  • Dining: 2-4%
  • Groceries: 4–5%
  • Gas: 3–5%
  • Travel: 2–5%
  • Streaming: 1–2%

Example: Lisa’s Monthly Spending Breakdown

Total Annual Rewards: $780

If Lisa just used a 1% flat-rate card? Only $300.

That’s a $480 difference—enough for a round-trip flight, fancy dinner, or a year of Disney+.

Takeaway: Think about where you spend your money and narrow it down accordingly. 

Match Your Card to Your Lifestyle

Every card is good at something. Match it up with your lifestyle.  

You can earn travel points through several simple methods and we’ll show you how. 

Some Real-Life Examples: 

Alex the Adventurer

Why: Earns 3x on travel and dining—plus transfer partners for huge value

Tina the Takeout Queen

Why: Up to 4x points on food-related spending = $1,200+ in annual travel value.

Brian the Boring Buyer

Why: Flat 2% back—no categories, no fuss.

Points, Miles, and Free Trips—No Catch

You’ve heard the stories—free flights to Europe, business class to Japan. They’re real and anyone can do it.

Example: Emma’s Paris Redemption

  • Signs up for the Chase Sapphire Preferred
  • Hits $4,000 spend in 3 months → 75,000-point bonus
  • Transfers points to United → Books $1,000 flight to Paris for free
  • Result: Free vacation using everyday spending

You can also check out our “Beginner’s Guide to Saving on Travel Points” to learn the basics of how to leverage points to travel like a pro for those amazing trips you see all over Instagram!  

Don’t Ignore Perks and Protections

Beyond rewards, credit cards can offer all kinds of extra value.  These can really add up if you use them right so look out for the other benefits cards have to offer to help you get the most out of your cards.  Here are some examples you might not have thought about:

Are Annual Fees Worth It?

This is one of the hottest topics in the credit card world right now. 

Chase just increased the annual fee on their Sapphire Reserve card by almost 50% to a whopping $795 per year.  The Amex Platinum card is currently $695 per year….these might seem outrageous to a normal person, but when you dig into the benefits the math can actually work out in your favor.  Just because a card comes with an annual fee doesn’t necessarily mean that the fee isn’t worth it.

But only if the benefits outweigh the cost.

Example: Amex Gold Card

  • Annual fee: $250
  • Value of rewards (with $800 groceries + $500 dining): ~$384/year
  • Uber & dining credits: $240/year
  • Net gain: ~$374

Pro tip: Do some quick math. If you’re taking advantage of the benefits, annual fees can easily pay for themselves (and then some).

Credit Cards and Your Credit Score: What to Know

Smart card usage can actually boost your credit score over time.  Having a history of responsibly using credit can show lenders that you’re a smart borrower.  And while it might sound counterintuitive, having more available credit can work in your favor.  

Your utilization ratio looks at how much available credit you have versus how much you actually use.  If you keep this ratio low, it shows lenders that you’re a responsible borrower.  That’s why you hear about people who have 10+ credit cards open with a FICO score above 800.  They’re essentially just spreading their available credit across different cards while keeping their balances low or at zero.

Key Credit Score Factors Affected by Cards

Utilization Ratio: Keep it under 30% (ideally 10%)
Age of credit: Keep older cards open
New inquiries: Spread out new applications to avoid any blips
Total available credit: More available credit = healthier utilization

Pro tip: Having multiple cards with low balances is better than maxing out one card. 


    Final Thoughts: Stop Letting Your Wallet Slack Off

    Choosing the right credit cards isn’t just about chasing sign-up bonuses or collecting shiny plastic. It’s about making your money work harder for you.

    Spend money wisely and earn all kinds of rewards

    OR

    Spend it blindly and leave money on the table

    So, is your wallet warning its keep?  Or just taking up space?

    Kiwii, Inc. is part of an affiliate sales network and receives compensation for sending traffic to partner sites, such as MileValue.com. This compensation may impact how and where links appear on this site. This site does not include all financial companies or all available financial offers.
    For Capital One products listed on this page, some of the above benefits are provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply.

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