Having multiple credit cards has its own set of advantages and disadvantages. While managing several credit cards can be quite a challenge for an individual, if used smartly, having more than one card can also be a boon. People are often tempted to apply for many credit cards because different credit cards come with different features and exclusive benefits. For example a travel credit card is suitable only for travel related expenditure and will give maximum rewards only if used for travel purposes. This is why many people tend to have different credit cards for different type of spending.
Is It Okay To Apply For Multiple Credit Cards At Once?
There is no harm in applying for several credit cards at the same time because each application is reviewed and considered separately. On the other hand, it is also wise to be a little cautions because managing a number of credit cards can get challenging.
Many banks approve multiple credit cards if the applicant has a good track record.
Each type of credit card comes with its own set of unique benefits and hence some individuals need more than one card.
Those with a very good credit score can apply for additional credit cards.
Can You Have Too Many Credit Cards?
This depends entirely on the type of credit card that the applicant holds. For example, if an individual holds a diverse range of credit cards that are very different from each other in terms of usage and benefits, then it is okay. Let's say, one is a travel credit used for travel-related expenditure and the other is a rewards card used for regular purchases. The travel credit card is not ideal for regular purchases made in supermarkets, etc, while a regular credit card is not ideal for travel expenditure. Hence, it makes sense because you cannot get maximum rewards points and travel related perks on a regular credit card.
Ideally, having 2 or 3 credit cards, each with exclusive features: 1 for travel, 1 for regular use and 1 for online shopping is not bad
However, having more than 3 credit cards is generally not recommended.
Those who are able to manage with one credit card should stick to one.
As long as the individual is making payments regularly on all credit card bills, it will not affect or have an impact on access to other forms of credit.
For those who own their own business, it makes sense to have 1 credit card for personal use and another only for business.
Advantages Of Having Multiple Credit Cards
Helps keep credit utilization ratio low: If you have one single card and use 90% of the credit limit, it will naturally bring down the credit utilization score. However, if you have more than one card and use just 50% of the credit limit, it will help maintain a good utilization ratio that is ideal.
Helps build credit score: Those who have several credit cards and still make all payments on time, will build a very good credit score. This will increase the credit worthiness of the individual and give him or her access to more credit opportunities.
Increases credit limit: Having many credit cards gives the cardholder access to a higher credit limit. However, this should be used responsibly.
More rewards and cashbacks: Multiple credit cards give customers access to more card-related perks and benefits, which may be in the form of cashbacks and rewards.
Disadvantages Of Having Multiple Credit Cards
Difficult to manage: Having more than one card means keeping track of each billing cycle, credit limit and payment due date. This can get overwhelming and missing even a single payment due date can have an affect on credit scores.
Can lead to unnecessary debt: Having access to more credit can often be tempting. This can lead to overspending and this will inturn add to debt. If cardholders are not cautions enough it can easily lead to overspending.
Credit Score And Multiple Credit Cards
Those who have several credit cards and manage their payments in a systematic and disciplined manner, tend to have higher credit scores than those who have a single card and max out their credit limit.
Several credit cards give a customer the privilege of a higher credit limit and hence in such cases the credit utilization ratio of the individual fits into the ideal level.
If credit card holders default payments on multiple cards, it can have a significant negative impact on the credit score.
The Bottom Line
According to research, most people have around 3 to 4 credit cards. While there is no ideal number, what is important is not how many credit cards a person holds but how well all credit card accounts are being managed. If well managed, this can open doors to more perks, benefits, cashbacks and rewards.
How to Reap The Benefits of Having Multiple Credit Cards
Many credit cardholders wonder if it is beneficial to hold multiple credit cards. Having multiple credit cards have both pros and cons. Though having more than one credit card and not paying your dues on time can affect your credit score negatively. But, if used wisely, having multiple credit cards can be beneficials. There is no ideal number of credit cards you can own. You can own as many credit cards as you want as long as you are eligible for it. However, having multiple line of credit can make you look like a desperate borrower and increases the overall available credit. If you do not maintain the right credit utilisation rate, your credit score may be reduced.
Also, in future, when you apply for a loan, the number of credit cards you own may affect your overall repayment capacity. However, you can reap the benefits of holding multiple credit cards in the following ways:
You can choose one of your credit cards that offers great rewards on utility bill payments. This way, every month when you are paying your utility bills, you can save.
If you are unable to pay one of your credit card bills, you can transfer funds from your other credit card and avoid paying interest or late fee. This is only beneficial if the due dates on your credit cards are not the same and you get ample time to arrange funds and pay your credit card bill.
With multiple cards that provide you rewards, deals, and discounts in segments of your choice, you can increase your overall gains by transacting through each of them.
Multiple credit cards used together provide you with an enhanced spending limit.
Used with responsibility, multiple credit cards can provide you tremendous spending power, enhanced lifestyle, and the chance to improve your credit history.
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The Pros And Cons Of Having Multiple Credit Cards
I had applied INDUSIND BANK PLATINUM AURA EDGE CREDIT CARD. I have got very low credit limit, I was promised more than one lakh but given only 50 thousand. I received the card and the PIN on time. It is a lifetime free credit card. There is reward points and offers.
After i applied the Indusind bank credit card i got a transfer from Bangalore to Kolkata hence i contacted them to provide the card to my cousin who is staying in my house but they said that they cannot processed the same and there is no follow up from bank after that. For the converting the EMI option, i have opted for this card.
I am having State Bank Of India credit card which was directly taken through Bank .I am using this credit card for more than 2 years ,I have got all the details about the card process.The credit limit was good and it was upto 565,000, I have not faced any difficulties on submitting the documents ..I am totally satisfied on using this card.
I am having Axis Bank credit card which was directly taken through Bank .I am using this credit card for more than 2 years ,I have got all the details about the card process.The credit limit was good and it was upto 54,000,This was a paperless approval.I am really satisfied with service of this card.
I came to know about Bank bazaar through Advertisement only.Checking credit score is really good and useful but if the information is provided on date wise then it will be comfortable that is my suggestion App is also good to use and also quite user friendly .I am Satisfied with the service.
I have applied for Indusind Bank credit card through Online .I have not used the card since not got the pin number .I have tried through App but unable to use getting an update need to open a bank account then can access .While submitting the documents there was no issues .I have not yet used the card since not having pin number .
I have come to know about Bankbazaar from an advertisement on Instagram. I had downloaded the mobile application and applied for credit card. I had a very good experience with Bankbazaar. I started using Bankbazaar's service one month back.
I have received my PLATINUM AURA EDGE MASTER CARD from Indusind Bank. My credit limit is one lakh and I am ok with it. I received the card on time and there is no annual fee. I am using this card to withdraw cash, metro rail ticket, online shopping and petrol.
I am holding the Regalia credit card from HDFC and i am not much using the credit card. I'm much satisfied with the HDFC card limit. I need to pay some annual fee of Rs. 1500 and it won't get waived off even though if i use certain limit. I hold this card for 2 months and i received the first month bill which is not that much clear to understand. There are various option to do the payment.
I just wanted to have a credit card from Indusind Bank Ltd hence taken. I have been looking for a better credit limit. I am using the card for more than a month and the payment mode is easier. I am using the mobile application and there was no issues. The documentation process was simple.
Bankbazaar service is good and nice. They will take care of the documentation process. I come to know about bankbazaar through online advertisement and the customer support is really nice. This is the first time i have visited the bankbazaar website and its good.
No particular reason for selecting the credit card from Indusind bank. I haven't use the card because i haven't get the limit what i expected. For past 2 month ago, i have started using the credit card and there is a annual fee which i have no idea about it. I haven't speak with the customer care till now and the documentation process is really good. If they provide a appropriate limit to the customer based on the salary, it would be fine.
I am using ICICI BANK credit card recently and its good. The credit limit is very very less only and it would be appreciable if they can increase my limit so that I can use this card frequently. The annual fee is not applicable. There is no hidden charges and the payment mode is easier.
I like Bankbazaar's service very much. Their customer service is very good, I was given clear information. I have downloaded their mobile application and it is very user friendly. I have come to know about Bankbazaar from promotion email.
I had applied INDUSIND BANK PLATINUM AURA EDGE CREDIT CARD onlnie. Their mobile application is very slow, I am not able to do transaction through this application. They have given very less credit limit. I was expecting more than two lakhs but given only 75 thousand.
The main thing is followups are good, If I place any request for a financial products and they are just taking 7 to 8days and getting the card. I am very much happy with the service and response. I am having mobile application and there was no difficulty to access.
For fuel, Indusind Bank is charging more surcharges. If I spend for Rs.100 and they were charging 11rupees extra when compared with other banks. I got a life time free card. I am expecting more limit but it was very lesser for me even my credit score is good. There is no offers as of now.
No particular reason for choosing the indusind bank. I have not received the card on time and they have delayed almost for 3 weeks. I'm satisfied with the credit limit provided to me. They need to communicate with the customer regarding the additional information about the credit card details. I did not received the welcome call and my credit card has been blocked and when i contact the customer care, they said i need to submit some more documents.
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Reviewed on Sep 16, 2019
I am impressed with quick response of Bankbazaar.com. I have been using the website for frequently and recently have purchased the policy. Its easy to compare and enquiry. The website is good and user friendly. The response was very prompt from the customer support.
Indusind Bank credit card is good and also the charges are standard like other banks. They have provided the credit limit according to the eligibility. There is no annual fee. There is no much reason for getting the card just wanted to have a card from Indusind Bank Ltd.