The best credit card for rewards will depend on your preferences and spending habits.

But a few popular options include the Chase Sapphire Preferred® Card, Blue Cash Preferred® Card From American Express, and Capital One Venture Rewards Credit Card.

There is no one-size-fits-all solution for the number of credit cards you must have.

Generally, having two to three credit cards at a time for different purposes can be beneficial, offering flexibility and maximum rewards – one with flat-rate rewards and the other with bonus categories.

Ultimately, the number of cards you can own would depend on your financial situation, credit score, and ability to manage multiple accounts.

To maximize your credit card rewards, make sure the card’s rewards structure complements your spending habits, aim to achieve the welcome bonus, and leverage the bonus categories and other perks like travel insurance & airport lounge access.

Also, make sure to redeem your earned rewards strategically for maximum value and always pay off your credit card bill in full each month.

Credit cards work by offering you a line of credit from the card issuer, which is used by cardholders to make purchases, balance transfers, etc.

You can only borrow this money with an agreement to repay the loan amount in the future and interest if not paid in full by the due date.

Generally, your credit card rewards are not taxable.

The IRS considers these rewards as a form of discounts or rebates on purchases made with credit cards instead of your income.