Plastic Money: Should You Have More Than One Credit Card?


Credit cards, if used wisely, are useful financial products that offer you several discounts and save you money on your daily expenses for fuel, groceries, shopping and household payments. invoices. Although a single credit card can meet all your payment requirements, sometimes you may need multiple cards to meet your specific needs. Often people are hesitant to decide how many credit cards they should have. Here’s how to decide how many credit cards you should have.

When do you need just one card?

It depends on how you manage your expenses. Many people prefer to pay by credit card only, as handling cash for day-to-day expenses can be inconvenient. However, you can decide based on your needs and usage. If you are using a credit card for the first time, you may not have a credit history. This means that you may not be able to apply for exclusive or premium credit cards depending on your income and expenses.

In such cases, you should first apply for a credit card based on your income and expense needs. Use this card regularly and pay off the bill on time to establish a good credit score and eventually qualify for a higher category credit card for more benefits. If you’re still learning the ropes and rarely use a credit card, one card might be enough to start your financial journey. When financially mature, you can acquire more cards according to your needs.

Benefits of having multiple credit cards

Each credit card has its particularities and advantages. For example, suppose one credit card offers you discounts on booking travel tickets and another credit card offers you a discount on online shopping or access to several airport lounges. To benefit from these advantages, you can hold several credit cards.

Adhil Shetty, CEO of, explains, “Having multiple credit cards could get you a higher overall credit limit. If the limit of one of the credit cards is exhausted, you can use another credit card. When you use multiple credit cards, you can spread spending across your different cards and easily reduce your credit utilization rate, improving your credit score. You can get credit cards with different maturities and thus use credit cards whose statement date has just ended to benefit from a maximum credit period without interest.

Tips for Selecting Multiple Credit Cards

You can choose several credit cards depending on your financial habits and lifestyle. You can get co-branded credit cards based on your spending habits. For example, if you travel often by plane, you can get an Air Miles credit card, if you regularly stay in hotels, you can apply for a travel credit card, and if you shop online often, you can apply for cards. credit and soon. Before applying for multiple cards, you need to identify your spending habits. List your monthly expenses from top to bottom in descending order. Now identify the top three regular expenses each month. You can get credit cards that offer discounts for items at the top of your spending list.

Get multiple credit cards for your regular expenses. Avoid getting cards to cover only one-time expenses. When you get multiple cards, you can get them from different issuers like Amex, Visa, Rupay, Master Card, etc. This strategy can help you take advantage of several offers and discounts.

Ideal number of credit cards you should have?

Back to the most important question. How many credit cards should you have? The number of cards should depend on factors such as your spending habits, lifestyle, efficiency in managing multiple cards, etc. If you have a lifetime free credit card offer that can help you earn more benefits when you spend money, you can apply for this. You must have 2 or 3 credit cards, depending on your usage. Having too many credit cards can be financially difficult for some people. You can forget their due date and end up messing up your credit score. Therefore, you should only carry as many credit cards as you can comfortably and financially handle.

Tips for credit card users

“It’s generally a good idea to follow strict financial discipline while handling multiple credit cards to avoid financial difficulties later. Set up an automatic debit facility in your bank account for credit card bill payment. This can help you avoid missing the bill payment, suggests Shetty.

Keep your credit cards in a safe place. These days, most credit card companies allow the facility to enable and disable card usage through their apps. You can reduce the use of your card when you don’t use it regularly. Also set the daily usage limit for credit cards you plan to use regularly to prevent abuse. Finally, depending on your needs, you can also activate or deactivate the international use of your credit cards. Following these simple tips can be beneficial and help you get the most benefits from your credit cards.

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