Advantages and Disadvantages of Owning Multiple Credit Cards

If you are also troubled by the fact that whether we should use multiple credit cards, then today in this article we are going to tell you in detail that Is it Good or Bad to have Multiple Credit Cards? Today everyone wants to use the credit card but before using it you must know about the Pros and Cons of Credit Cards

Is it Good or Bad to have Multiple Credit Cards

Many times such a situation arises that we need multiple credit cards, but many times people get more than one credit card issued for themselves even if it is not needed as a result of which they have to face many problems later on.

Therefore, in this article, we are also going to tell you under which circumstances you should get more than one credit card issued for yourself and under which circumstances you can operate with a single credit card and there are some situations where you don’t even need a credit card. In such a situation, if you do not apply for a credit card for yourself, then it is good for you. We are going to explain all these in depth in this article today.

Is it Good or Bad to have Multiple Credit Cards?

If you are a settled and smart person and you know how to make money out of money, then you can keep multiple credit cards and use all those credit cards in such a way that you can earn Reward Points from them. . With this, you should use as many credit cards as you can repay the entire bill on time. But if you do not have much knowledge about credit cards and your work can be done with only one credit card, then do not get issued with more than one credit card because it can drown you in credit card debts.

Advantages and Disadvantages of Multiple Credit Cards

If you have many credit cards, then what are their advantages and disadvantages, now we will see step by step about them –

Advantage of Multiple Credit Cards

  1. More Purchasing Power
  2. Lower Credit Utilisation Ratio
  3. Better Cibil Rating
  4. Multiple Rewards And Benefits
  5. Fraud And Theft Backup 
  6. Isolate Your Personal And Corporate Expenses

More Purchasing Power

If you want to have many credit cards, they have different credit limits, so that you can make a big purchase by adding all those credit limits. More than one credit card can come in handy when you make a major purchase where a credit card is not enough.

Now it is known to all of us that our credit card limit is based on our salary. That’s why if you are a low salary employer then you can increase your purchasing power by getting multiple Credit Cards Issued.

Lower Credit Utilisation Ratio

There is a Credit Utilization Ratio in our credit cards. Suppose if you have got a credit card with a limit of Rs 1 lakh and out of that you spend ₹ 90000 on an average every month, then in this situation your credit utilization is 90% on an average.

But this is not a good number because the more your credit utilization, the more your CIBIL Score i.e. Credit Score Weak. Your Credit Utilization Ratio is a very important ingredient in CIBIL Score. The more you use your credit utilization, the more negative your credit score will be affected.

  So if you have a lot of credit cards, then you can do this purchase of ₹ 90000 with two or three credit cards, which will reduce the Credit Utilization Ratio of each of your credit cards.

Better CIBIL Rating

When you diligently make full payment of your credit card for the whole month, then your credit score improves and the more credit card bills you pay in full on time, the better it will be because the credit score keeps a record that you have multiple loans going on.

Now Credit Card is just a loan in one way and you are paying all those loans in full on time in Discipline Way.

But for this you have to pay 100% of your every credit card payment on time. Credit card companies do a big trick with you that they tell you to pay the minimum amount of your bill, but if you pay only the minimum amount of your bill, then you will pay a lot of interest on the remaining bill.

Multiple Rewards and Benefits 

The more you have credit cards, the more cashback and points you will be able to earn. This is the strongest reason why you must have multiple credit cards. The best utilization of credit card is that the purchases that you have to make, you can do through the credit card and earn reward points.

It is important for you to know that each credit card has its own unique features. Many credit cards are for specific brands like – Amazon Pay ICICI Card using which you can earn cashback on Amazon, apart from this Flights and Airlines have their own credit cards.

Amazon Pay ICICI And Axis Bank Vistara credit Card

So if you have a lot of credit cards, you can use them effectively. Especially when big e-commerce sales are live such as Amazon’s Great Indian Sale and Flipkart’s Big Billion Days Sale, you get a lot of cashback on these credit cards. So whenever you think of getting more than one credit card, make sure that their Reward Program is not Overlapping because if you get the same discounts on all credit cards, then what is the use of having more than one credit card.

Fraud And Theft Backup 

If ever one of your credit cards is stolen or lost, you can immediately get it blocked and keep your purchases continuous with the help of other credit cards. This is another big advantage of having multiple credit cards.

Isolate Your Personal And Corporate Expenses 

If you are a corporate owner or run your own business, having multiple credit cards will help you keep your personal and corporate expenses separate. You can use your personal credit card for your personal expenses and you can use your other credit card for your business expenses.

Now after reading the Advantages of Multiple Credit cards, it must be coming in your mind that you can issue as many credit cards as you want, but there are some Disadvantages about which we will know now-

Disadvantage of Multiple Credit Cards

  1. Hard To Keep A Track of Multiple Cards
  2. Risk Of Overspending
  3. Credit Card Fraud OR Theft
  4. Falling In Credit Card Debt Trap

 Hard To Keep A Track of Multiple Cards

If you have multiple credit cards, it becomes difficult to track their payments. If any extra fee has been added to your credit card by mistake, tracking it or tracking your accounting can come in front of you many such problems.

But businesses like CRED have solved this problem. When you fill your details by visiting CRED, it automatically fetches how many credit cards you have and from there you can easily track and manage all your credit cards.

Risk of Overspending

Your risk of overspending increases when you have multiple credit cards. Suppose you have three credit cards with one lakh limit each, then at that time you get confused that you have RS 300,000 and you start buying things which are not necessary for you.

Never look at a credit card from the point of view of a loan, rather look at it like a debit card, the only difference is that in a debit card money is deducted instantly from your bank account and in the credit card, you pay that money after 30 or 45 days, but you have to pay the money in full.

Spend as much money from your credit card as you have now or as much money is going to come to you after a month so that whenever your statement is generated, you pay the entire bill till its due date.

If you do not have the will power, then having multiple credit cards can prove to be quite harmful for you especially for youngsters.

Credit Card Fraud OR Theft

If you keep all your credit cards in one wallet and sometimes your wallet gets stolen or lost, then you may have to face a big problem again. Therefore, keep the credit card that you need the most with you, and take the rest of the credit cards with you only when you need them.

Due to this, even if your wallet is stolen, all your credit cards will not be lost at once.

Falling In Credit Card Debt Trap

This point is closely related to our second point. If you spend more money than your credit cards, then you will not be able to make full payment of all your credit cards on time, due to which you will get trapped in credit card debt.

Even if you continue to pay the Basic Minimum Due amount of your credit card every month, even then your overdue amount will go out of control one day, so never do this.

What Is The Best Strategy To Manage Multiple Credit Cards?

Here are some strategies to manage multiple credit cards effectively-

Keep track of your spending: Maintain a record of all your purchases and payments to avoid overspending.

Pay off your balances in full: Try to pay off the full balance on all your credit cards every month to avoid interest charges and improve your credit utilization.

Assign a Purpose for Each Card: Use different cards for different spending categories to maximize rewards and keep track of your expenses.

Monitor your credit score: Check your credit score regularly to ensure that your credit card usage is not negatively affecting it.

Make payments on time: Late payments can result interest charges, and can also hurt your credit score. Set up reminders to make Payments on time.

Avoid overusing credit: Try to limit your credit card usage to maintain a healthy credit utilization ratio.

By following these strategies, you can manage multiple credit cards effectively.

Does Multiple Credit Card Affect CIBIL Score?

Using multiple credit cards does not directly affect your CIBIL score, but if you do not pay your credit card bills on time, your CIBIL score may get affected. With this, if you divide your expenses by having multiple credit cards, then the Credit Utilization Ratio of your every single credit card will be low, which will increase your CIBIL score.

Can We Have Two Credit Cards From The Same Bank?

You can get two credit card issues done from Same Bank. Banks offer you a variety of credit cards based on the rewards and benefits. After how many days you can apply for your second credit card depends on the policy of your bank and your credit profile. But generally the waiting period for applying for a second credit card is set at 90 days and if you apply both the credit cards in a short span of time, then it can affect your credit score.

How Many Credit Cards Should A Person Have?

The number of credit cards an individual should have depends on their individual financial situation and spending habits. Generally, having one to two credit cards is enough for most people. It is important to consider your spending habits, financial goals, and ability to manage multiple cards before deciding on the number of credit cards you should have.

Final Words:

Hope after reading this article, you must have come to know that Is it Good or Bad to have Multiple Credit Cards? Before using any credit card, we must be aware of the disadvantages and advantages of credit cards and youngsters get caught in this trap very quickly.

So if you are a smart user and you have good knowledge about it, then you can get multiple credit cards issued according to your needs. If you have any question or suggestion related to this topic, then definitely tell us. Your feedback is helpful for us.


ALL articles on this website are written for informational purposes only, it does not have the intention of defaming any company or service. The information presented has been shared on the basis of its knowledge and experience. That's why before having full faith in the information, do research at your level.

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