Rummage through anyone’s wallet and chances are that you will find more than one credit card in there. Nearly everyone you know use multiple cards. Is this a good or bad thing?
The decision to get multiple credit cards must be taken cautiously and responsibly. You must do it for the right reasons. Here are some of the advantages of getting multiple credit cards:
If you get multiple cards, make use of automatic payment reminders so that you do not miss any payments on any of your cards. You could also get your bank to send you reminders via email or text messages with information regarding your recent transactions, reminders of due date and balance.If you decide to get multiple credit cards for the right reasons and you are careful with how you manage them, getting more than one card could actually be beneficial in the long run.
The decision to get multiple credit cards must be taken cautiously and responsibly. You must do it for the right reasons. Here are some of the advantages of getting multiple credit cards:
- Getting a separate credit card just for your online shopping can be very helpful. Not only will you be able to keep track of your online expenditure, but you will also be able to look out for identity theft or fraud.
- Most banks will require a few days to get you a replacement if you lose your credit card. Thus it is a good idea to keep an extra one you can use in emergencies. This is particularly useful if you are travelling and need constant supply of money.
- People get a second card to save money. How? You might come across a credit card with a lower annual percentage rate (APR) or promotional rate. You can transfer your balance from your initial card onto this card with better rates.
- While travelling there are many mishaps that can happen. One of them being your primary card being unaccepted in the country you have travelled to. To be on the safe side you should have more than one credit card on you. If your card is fortified with smart chip technology, it will be even better because it ensures greater acceptance in more countries as well as added security abroad.
- Different cards offer different rewards. You can choose one card which gives you best benefits while shopping like a cash back card or a card that gives better product warranties. There are many cards that offer great deals if you are constantly on the road, by presenting you with miles.
- More cards equal more responsibility. You will have to remember more payment dates and manage more cards. Also missing more due dates mean more money out of your pocket and increased interest rates. Most importantly, if you miss multiple payments it will affect your credit score adversely.
- Having many cards increases your chances of going deeper into debt. Make it a point to use your new card in the way you intended. For instance, if you got a new card because it has a lower APR resulting in your debt reducing, make sure you don’t use this extra credit that you saved and get into further debt.
- There will be negative impact on your credit score if you apply for many cards in a short time. So always make sure that you do your research before you apply for a second card and pick one that best suits your needs.
If you get multiple cards, make use of automatic payment reminders so that you do not miss any payments on any of your cards. You could also get your bank to send you reminders via email or text messages with information regarding your recent transactions, reminders of due date and balance.If you decide to get multiple credit cards for the right reasons and you are careful with how you manage them, getting more than one card could actually be beneficial in the long run.