Here’s Why I Open New Credit Cards Every Year

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Credit cards offer lots of great features. Find out how one personal finance writer benefits by opening new credit cards every year. 

Opening lots of credit cards generally isn’t recommended. It gives you more to manage, and there’s the risk of credit card debt. Most Americans follow that advice to keep it simple, with the majority having one or two credit cards, according to a study by The Motley Fool Ascent. Only 13% of Americans said they carry four or more credit cards.

I’m firmly in that 13%. I have well over a dozen credit cards, and I apply for new cards every year, because it saves me money.

This isn’t something I’d recommend to most people. If you have any trouble managing credit or paying off your cards in full every month, then adding more cards to the mix isn’t going to help. But if you’re comfortable managing multiple cards, and you always pay off the full balance, then there are some key advantages to occasionally opening more.

More credit cards, more sign-up bonuses

The No. 1 reason I regularly open new credit cards is because I want to maximize rewards. The fastest way I’ve found to do that is with sign-up bonuses.

If you’ve shopped around for credit cards before, you’ve probably seen these kinds of welcome offers: Spend $4,000 on purchases in three months to earn 60,000 points, spend $500 to earn $200 cash back, etc.

I’ve always figured that if I’m going to spend that much money anyways, why not get a sign-up bonus out of it? Here’s the key — make sure you can meet the spending requirement with your regular bills. If a sign-up bonus requires spending $4,000 in three months, but you only spend $500 per month, it’s not a good idea to get that card.

I love travel credit cards, and I normally save at least $1,000 per year on travel just from sign-up bonuses I’ve earned. But there are also plenty of valuable sign-up bonuses on cash back cards, too.

RELATED: Best Credit Card Sign-Up Bonuses

It also means more benefits

There are all kinds of credit card features out there. By opening cards regularly, I get more card perks that can save me money or improve my travel experience.

For example, I started out by getting a card with airport lounge access and that covered my Global Entry/TSA PreCheck membership. Not only do I get through airport security faster thanks to my credit card, I can wait for my flight in airport lounges with free food and drinks.

Later on, I opened a couple of good hotel credit cards. Those have gotten me free night certificates and complimentary Diamond status with Hilton, which has helped me get free upgrades and free breakfast.

If you prefer cash back cards, you can still benefit by having more than one. Maybe you start with a card that earns bonus cash back on gas and groceries. After a few months, you decide to add one of the dining credit cards that earns more back at restaurants. With more cards, you can earn bonus rewards across more spending categories.

An advanced way to save

To reiterate, having multiple credit cards can make your finances more complicated. You need to stay on top of your payments for all of them. You also may need to occasionally close or downgrade cards with annual fees if you aren’t getting your money’s worth anymore.

Even though it’s more work, I’ve also seen the benefits firsthand. Being willing to open new cards helped unlock amazing travel opportunities for me. Don’t rush into anything by getting several new cards at once. But if you think you can manage it, consider adding the occasional new card to your wallet.

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The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Lyle Daly has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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