15 Things You Should Know About Multiple Credit Cards

If you thinking about getting multiple credit cards but before that in your mind there are questions bubbling. Is it good to have multiple credit cards?

The answer to your question is – “Having more than one credit card can actually help your credit score by making it lots easier to keep your debt utilization ratio low”.

In this article, we gathered some of the important tips that you must know before applying for multiple credit cards.

Advantages of Multiple Credit Cards

Having multiple credit cards is common nowadays because there are several advantages of having multiple credit cards. Such as it will increase your credit score and much more.  The fact, America’s average is 2.3 cards per person.

1 # Credit Cards Can Actually Keep Your Debt Utilization Ratio Low

If you’ve more than one credit card or multiple credit cards which mean your credit score is high compared to other people’s. There is one more benefit of carrying multiple credit cards, If you have long-term debt then in this case having multiple credit cards can actually keep your debt utilization ratio low.

2 # Use Different Credit Cards For Online Shopping

If you own multiple cards you can easily make an online payment for what you shop for. According to my knowledge at each payment with the credit card you 10 % percent of discount. Imagine if you buy cat food online and also want to purchase dog collars then to get the discount on both purchases you can make payments from different cards to save money.  To know more about budgeting read out our article Budgeting Tips.

3 # Save Money on Interest Charges by Transferring Credit Card Balance

Yes, you can save money from a credit card. Its most common method most of the finance expert advise saving money.  As you also know new credit cards have lower APR or promotional rates. The balance transfer credit card can be handy for transferring credit cards to maintain a strong credit score.

4 # Multiple Cards Can Save You When You Traveling

Lots of credit cards don’t active in different countries. So when you travelling from one country to another country with multiple cards, You can use another card in case if your main card not acceptable at the Airport.

In simple words, when you’re travelling abroad.  Having multiple credit cards allows you to have one credit card as a backup. It’s helpful when the primary credit card is block or unacceptable.

5 # Get Rewards on Credit Cards Purchasing 

The benefit of using multiple credit cards is that you can advantage of a reward program. Mostly credit card is eligible to get reward offers. In simple words when you make the purchase from the credit card you will get some reward that will be cashback or some percentage of discount on the item price.

6 # Financial Safty Is Major Factor Of Using Multiple Cards

This is one of the major factors for which lots of people carry multiple credit cards. Example – If someone steals your credit card and makes a fraudulent purchase with it. You can easily contact the credit card company inform them that your card is stolen.

7 # Staggered Your Bill Payments Through Different Cards

You can stagger your bill payments. If you still have one credit card and you’re addicted to shopping then your all payments will proceed through the same credit that may become a problem for you. If you’ve multiple credit cards, you can make payments throughout the month.

8 # How Many Credit Cards Should I Have To Improve My Credit Score

If you’ve questions like how to increase credit card score immediately? or should I have more than one credit card to build credit? Then keep reading to know how many credit cards you should have.

Yes, it’s good to have multiple credit cards to improve credit score and some other benefits. But the number of cards is also important. According to the FICO Score – “The Total Number of Credit Cards You Have Doesn’t Greatly Affect Your Credit Score”.

Usually having almost 4 credit cards are enough to maintain the credit score. However, you’ve to follow tips to increase your credit score.

Disadvantages of Multiple Credit Cards

There are also some of the disadvantages of using multiple credit cards. That you must know before owning the second credit card.

9 #  Multiple Credit Cards Are Difficult To Manage

It’s totally true if you’ve multiple credit cards it’s hard to manage them. I generally use one of mine credit card for online shopping. Second card for bill payments and debts. Missing due dates or paying the wrong amount to the wrong card can result in late fees.

10 # Multiple Missed Payments Can Increase Interest Rates

If you’ve more than one credit card and once a week you make missed payment then this can lead to an increase in interest rates of your credit card or else it will hurt your credit score. So when you make payments for online shopping or somethings else double-check your credit card information or are using the right credit card.

11 # Applying to Multiple Credit Cards In Short Time Will Affect Your Credit Score

According to the FICO@ company report, if you applied to multiple credit cards in a short time period such as in a month. It will negatively affect your credit score.

So before applying for a second credit card do some research on the credit card company.  Such as check credit card policies and some other important factors.  The best tip to manage multiple credit cards – Try to don’t use your complete credit at once it will affect your credit score. Try to use no more than 30 percent.

12 # Make Sure You Use Cards The Way You Planned

Many times when you’ve multiple cards it easier to run up debt faster. However, you must use cards the way you planned. Which if you have a new card with a lower APR you can consolidate debt at a lower interest rate. Don’t ever use the extra credit to pay the debt.

 13 # More Cards Offer Fraud Protection To The User

Having one credit card that you used to every time leaves you more vulnerable to fraud. The more you use your single credit card the more chances it to get hacked.  If you’ve more credit cards it will secure you from online fraud or credit card fraud.

14 #  Credit Cards Are Dangerous For People Who Have Less Self-Control

Basically, if you have less self-control on shopping or the things you want to purchase. Then in this case, the credit cards are dangerous for you because it allows you to wrack up debt. Multiple credit cards can easily be stuck into a debt trap.

15 # Credit Cards Makes Easily To Spend And Hard To Save

If you already owning a credit card then you know what I’m talking about. When you’ve credit cards it makes it easier to spend money but it’s hard to save money through credit cards except for reward programs.

The Bottom Line Of The Article:

I know this article will not help to know What is a credit card balance?  or something else. But this article guide you to know some of the important factors of multiple credit cards. This article tells you some of the pros and cons of using multiple credit cards.

Share your thoughts about having more than one credit card with our readers.  Tell your personal experience about multiple credit cards with us through the comment box.