Credit cards are instrumental in emergencies, easy to carry around, accepted almost everywhere, and come with cashback and rewards. But as we all know, everything good comes with a price, and so do credit cards.
If you have more than one credit card, it can become a nightmare if you’re not very financially savvy. However, having more than one credit card can be a blessing if you can manage to make it work.
By the end of this reading this article, you will be able to quickly decide if having multiple credit cards is a good idea or not. We will be looking at the following;
- Is it possible to carry around a couple of credit cards?
- How many credit cards can you apply for?
- Who needs more than one credit card
- Benefits of having multiple credit cards
- Drawbacks of having more than one credit card.
Is it even possible to carry around a couple of credit cards?
Yes, it is possible to carry around more than one credit card. You can keep them in your wallet. After all, credit cards are small and thin which can fit into any wallet, even the smallest ones.
It’s also 100% legal to have more than one credit card. No law says you can’t have several credit cards as long as you pay off your balances every month and don’t abuse the benefits of having a credit card.
How many credit cards can you apply for?
There is no limit to the number of credit cards you can apply for. Just make sure that you’re not applying for numerous credit cards at once (like a dozen). This is because applying for multiple credit cards at once will be a red flag for the creditor, and your application will most likely be declined.
Also, make sure to track your credit score. Applying for multiple credit cards is a sign that you’re having financial difficulties, which could lower your credit score.
Who needs more than one credit card?
The answer to this question is straightforward. Everyone can benefit from having multiple credit cards!
Now, how are you going to benefit from having more than one? If the options below suit you, you definitely need more than one credit card.
1. You look for convenience:
If you often need cash but don’t want to carry cash around, it will be better to have a credit card with you. Most often, there is a limit to how much you can spend with a particle credit card.
Let say you have maxed out your daily limit with one credit card. You find yourself in a situation where you can’t resist an offer, which has a time limit. If you have a second credit card, you can easily benefit from the convenience of benefiting from this irresistible offer.
2. You like rewards:
Everybody likes getting free stuff! If you enjoy earning rewards every time you use your card, it will be better to have more than one card. But take note that you should only get a credit card to earn rewards if you can pay off the balance every month. Otherwise, the interest you’ll end up paying might become costlier than whatever freebies or other perks that come with your rewards!
Different credit cards come with different rewards. So if you have multiple credit cards, you stand the chance of enjoying numerous rewards.
3. You like to get cashback bonuses:
If you’re a big spender and can afford to pay off your balance every month, it will be better to have three or four cashback cards that you can use at different times. Doing this will allow you to earn as much as 2% to 5% of your total spending as cashback rewards.
If you only have one credit card, you will be limiting the bonuses you could have benefited from multiple credit cards.
4. You travel a lot:
If you travel a lot and would like to use your credit card as your ATM, it will be better to have more than one credit card. This can save you from all the hassle that comes with declines due to maxed-out limits or technical issues.
You wouldn’t want to find yourself in a situation where you need to call back home for money. There is no worse experience than getting stranded without cash in a foreign city or country.
5. You are good at handling your finances:
Some may think that having more than one credit card is a gamble. But if you know how to manage your money well, then the idea of having multiple cards will be advantageous for you.
The benefits of having multiple credit cards:
There are quite a few benefits to having more than one credit card. All you have to do is make sure that you’re fully aware of your responsibilities and how much these cards can cost you if abused.
Here are five benefits of having more than one credit card:
1. You don’t need to carry cash anymore:
We’ve already mentioned this benefit in detail above, but we’ll talk about it again. The convenience of having a credit card becomes most useful when you need cash and don’t want to carry any with you. It’s better than having to carry cash!
Cash is often riskier to carry due to the increasing insecurities from buglers and thieves. So you have access to a substantial amount of money without the need to carry cash.
2. It can improve your credit score faster:
If you have just one credit card, that card will only be used to monitor your spending. However, if you get more than one, then each of these cards can be used on its own to monitor your spending. Having different types of transactions monitored by different cards means a better credit score for you!
Read More On >>> How credit cards could increase your credit score
3. You can take advantage of cashback offers:
If you often use your credit card to pay for bills and other expenses, you can get more cashback rewards by having multiple cards. This is because different cards offer different cashback percentages, which means that you’ll be able to earn a lot of extra cash every month!
4. Increases credit limits:
Multiple credit cards can help you get increased limits on your current cards. This will be beneficial for you because not only will your credit limits increase, you’ll also be able to earn more rewards even faster!
5. Increases your financial flexibility:
If you get a credit card to pay for an emergency and it doesn’t give you enough time to make ends meet, then having multiple credit cards can be helpful. You can use different cards to take care of your obligations and satisfy your needs.
The Drawbacks of Having Multiple Credit Cards:
Although there are benefits of having multiple credit cards, there are also some drawbacks you have to be aware of. Here are three potential disadvantages that you should consider before applying for multiple credit cards:
1. You can get into debt very easily:
Multiple credit cards mean more bills to pay every month. While having numerous credit cards might increase your ability to spend, it will also increase your liability as a borrower. You have to make sure that you’re able to keep up with your payments before you even think of applying for a new card.
2. Multiple credit cards are difficult to manage:
While having multiple credit cards can help you earn more money, it can also hurt your ability to spend wisely when used irresponsibly. It will be very important for you to manage your spending to reap more benefits from your multiple credit card accounts.
With multiple credit cards, you are responsible for monitoring all the transactions you make to easily track your spending. If you miss out on some information or fail to review some transactions, then you can find yourself in a lot of trouble.
3. It can harm your credit history if the bills are not paid on time:
Having multiple credit cards means more bills for you to pay every month. You have to make sure that these bills are paid on time, or else your credit score will be at risk.
While having more than one credit card can be advantageous for some people, it can also be detrimental to the financial welfare of others. You need to keep your credit score in mind when applying for more than one card. Also, make sure that you pay all your bills on time every month!