The popularity of credit cards these days is at peak and every individual seeks to have at least one card to handle their expenses and transactions. However, the people who already own one card are now seeking to have more than one credit card in their wallet. Having multiple credit cards is not the newest thing as people have been carrying more than one credit card from the past many years.
Also Read: 5 Best Trademark Attorneys in the US
The practise of having multiple cards have also benefited the credit card companies/market itself as it has increased the number of demand for the credit cards, leading to great promotion and growth. Other than the credit card market or companies, the individual also gets many benefits of having multiple cards. It offers you more rewards, higher purchasing power, among so many other benefits.
How Many Credit Cards Should You Have?
Though issuing for multiple credit cards might be useful for you as well, but, how many Credit Cards you should have is the biggest question here. Today, we are going to give you the answer of the same along with many crucial details you must know before getting multiple credit cards, so let’s get started.
Also Read: How to start a Podcast in 2020?
Things To Consider Before Issuing Multiple Credit Cards
Having multiple credit cards come as advantageous for you in many ways, however, if you have already a credit card and now you are considering for issuing the new one to have multiple cards then there are certain things that you must be aware of before issuing. Here we have listed some advantages and disadvantages of having multiple credit cards so you can have great and seamless experience afterwards.
Multiple Credit Cards: Plus Points
There are many advantages to have multiple credit cards for which you can apply for more than one card. Here we have listed some of the plus points to having many credit cards:
- As your credit cards increases in numbers, your credit limit also increases at the same time. As a result, you will get some additional spending power that can be used to funding or backing your expensive purchases as well as other extra expenses.
- With multiple credit cards, you can also improve your credit score. You can easily maintain a low credit operation ratio on every card that you are having. This comes as an advantage for deciding your credit score, a low credit ratio is one of the most significant factors.
- Having multiple cards let you transfer the outstanding balance to a single one from several cards. You can then, later on, repay the amount on that card according to your suitability. The term used for such kind of service is known as the balance transfer facility.
Multiple Credit Cards: Drawbacks
Along with many advantages, there’s also come certain drawback to having multiple credit cards. Here we have listed some of the disadvantages that are like to have when you own many credit cards:
- Multiple credit cards come with more financial responsibility and many payment liabilities and once you miss out paying any of your card’s bill on time, it may directly affect your credit score and it might drop instantly.
- Every credit card will come with a billing cycle where you have to pay for each and every card that you are having in a specified period of time. The problem arises when you spend recklessly by seeing your higher credit limit that comes by combining all of your credit cards. However, in the end, you have to pay for each and every card and at that time you might get a lot of burdens and you may possibly fall into this complex debt-trap.
- As the number of your credit card increases, the number of additional fees will also increase. These additional charges your credit card carries are annual fee, joining fee, late payment fee, reward redemption fee, among many. Therefore, you will end up paying higher credit cards fees and charges.
How Many Credit Cards Should I Have?
If you want to know the perfect number of credit cards that you can have, then, there’s no such ideal number. However, having at least two credit cards is considered to be the best option but it is still not the exact recommended number of having multiple credit cards. The reason behind this is that it all depends on the individual and his/her financial situation.
As the financial responsibility also increases with having more than one credit card along with the additional charges, so the individual who can handle such conditions and responsibilities efficiently can go for any limit which they can handle.
Before applying, you must check if you really have a need to have another credit card in your name and if yes, then what are your requirements. This is going to help you out in considering the right number and type of card that will surely fulfil your desired purpose and need.
Even if you are considering applying for multiple credit cards, you must try to issue it from different networks such as Visa, Mastercard, American Express, and so on. Every card and network will offer you different kind of benefits and rewards such as cashback, rewards points, among many.
In addition to that, one must take note that high credit score is the most important factor for applying for a credit card, without which your application won’t get approved. So if you have maintained a necessary credit score constantly, then you can have multiple credit cards with ease.
Overall, having more than one credit card can be a real blessing but you must go for the numbers which you can handle efficiently without falling into tricky debt-trap. You must know that having a number of credit cards is one totally different thing and repaying the dues is totally another. Therefore, you must only consider having multiple credit cards only if you can handle or overcome our above-mentioned disadvantages of having more than one card. It is a subjective decision and it might vary person to person, so check your demands and the handling of your financial responsibility, this will let you decide the ideal number for you to have multiple credit cards.