22 Jan, 2014
Savvy Tips

Diversifying Your Credit Card Portfolio

There’s an age old saying, “don’t put all your eggs in one basket”. Well, the saying is very true for credit cards as well. It is important for each one of you to have a few correct cards in your portfolio to maximize the rewards and protect yourself. Consider having a separate card for each of these categories:

Shopping Online

Many of us choose to shop online since it is sometimes cheaper and definitely more convenient. However, with increases in online fraud and identity theft, one has to take all measures to protect him/her self. To avoid damaging your credit history and financial losses, we recommend having a smaller limit card, for example $1,500, for shopping online. This way, in case your account or cards get comprised, you have nothing to worry about. The limit is low and credit card companies will be happy to fully reimburse in case the purchases were not made by you. It is much tougher to do if your limit is $20,000.

Tip: Consider obtaining a small no fee card to help you with these small item purchases and help protect yourself online from identity theft and fraud.



A great travel card in your portfolio can extend maximum coverage for you and those traveling with you (your depended children and spouse). You always want to know you have full coverage for emergency medical, trip cancellations, flight delays and much more. Imagine you book your trip on another card that does not offer all this protection – a waste indeed. You either travel without all these great insurances or purchasing third party insurances that can cost hundreds of dollars. Use a preferred travel credit card for all your travel needs and make your trips even more memorable.

Tip: Obtain the travel card that offers the best coverage for your needs. Wallet Savvy will help you select a card that optimizes your coverage and bottom line.


Day-to-Day Purchases: Rewards

For your day-to-day purchases, maximize on your rewards with your card of choice. You will be able to collect tons of points and redeem for different trips and or dream gifts. Your credit card can also maximize additional benefits such as extended warranty and price protection, for example. Many cards offer accelerated rewards on daily purchases such as gas, groceries and restaurants. Do not forget to add your reoccurring bill payments to the card to collect even more points faster. As we’ve mentioned before, redeem your points smartly to maximize your bottom line even more.

Tip: Select a rewards program that gives you the best return for your spending. Wallet Savvy will help you choose the right card for your needs.


Carrying a balance

Although we do not recommend carrying balances on your credit cards, it is a good idea to have a low interest card in your portfolio for those emergency days where you might have to carry a relatively low balance for a few days or weeks. The card may not give any perks but will save you money on interest and fees.

Tip: In this case choose the card that has the lowest interest possible. You do not need to worry about extended warranties and the like; you can cover one of your other credit cards with balance transfer.

In Summary

As you can see, it makes perfect sense to diversify your credit card portfolio to maximize your bottom line and keep yourself protected. Each card type offers a unique benefit that adds to your bottom line; it pays to be a Wallet Savvy consumer!

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