How Many Credit Cards Should You Have?
If you are already using a credit card, you might be tempted to go for more lured by the offers being given by credit card companies. But how many cards do you actually need?
Credit limit: If you feel that the credit limit on your existing credit card is not sufficient, then you may apply for one more card. But if you have a good payment history, credit card companies usually reward you by enhancing your credit limit periodically.
Convenience: Sometimes merchants don’t accept all cards, like some may accept only Visa and others only MasterCard. So if you have only one kind of card, you may not be able to make that payment using your credit card. Also, sometimes your card may get rejected for technical reasons. In such cases, a backup may be useful.
Benefits: Some cards offer privileges/good deals for specific purposes like petrol purchases, dining, air miles etc. If you want to take advantage of these offers, you make opt for a second card.
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While credit cards offer convenience, multiple credit cards come with drawbacks too.
Credit history: It is difficult keeping track of payment dates of multiple cards. Non-payment of dues can affect you in multiple ways. For one, you will have to pay interest to the credit card company. Second, it can also affect your credit score and ability to get loans in the future.
Impulsive buyer: If you are an impulsive buyer, having multiple credit cards can make you spend without thinking about your repayment capability.
Multiple credit cards require you to be responsible and hence experts don’t recommend having more than two or three credit cards.
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