Credit Cards: Credit cards have become a necessity in today’s times. Many people have more than one credit card. The important question here is whether having more than one credit card is an advantage or does it cause harm. Today we will give you the answer of this question.
First of all let’s talk about the benefits of having more than one credit card-
- Balance Transfer Facility: There is also an advantage of having more than one credit card that you can use the facility of balance transfer when you are unable to pay the credit card bill due to financial constraints. Under this facility, you can pay the bill of one credit card with another credit card. However, for this you also have to pay some interest.
- More Buying Options: In the era of online shopping, different shopping websites offer discounts or cashback on different credit cards. If you have more than one credit card, then you will have more options to choose from and you will be able to shop from the website which is getting the highest discount.
- Get more limit: It is very difficult for a working person to get a credit limit of more than 10 lakhs on a credit card, but you can take 10 cards with a limit of one lakh each from different banks.
- Good credit score: One of the major advantages of having multiple credit cards is that if you keep paying all your cards on time, then the credit score becomes very good.
- You can fall into the trap of EMI because having more credit cards will make you shop more, it is certain. While making EMI, it seems that it can be easily repaid but it does not happen. Having more credit cards can also result in higher EMI on you.
- If you have more credit cards then you will shop more and your debt will increase. Spending on credit cards is also a kind of debt.
- If there is an annual fee on your credit card, then you will have to pay a huge amount every year.
How to use multiple credit cards?
- If you want to avoid debt, then use credit cards wisely.
- It is better that you keep 2-3 cards but do not keep more than this.
- Try to get a lifetime free credit card as there are no annual fees.