Santa Claus comes around just once a year. In the meantime, there are Credit Cards.
  • The Pros And Cons Of Having Multiple Credit Cards

    We found 54 The Pros And Cons Of Having Multiple Credit Cards
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    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 Reviews

    • RBL Bank Credit Card
      "Easy to convert for EMI "
      0.5 4.0/5 "Great!"
      I got RBL card offer from BAJAJ Finance. I have been using this card past 10 months which is a life time free card. The credit limit is sufficient of 55K. EMI conversion is avail and I can convert via mobile app whenever required with nominal charge. I use this card for general purpose. Based on usage I get points but not yet redeem it.
      Was this review helpful? 56
      , chennai
      Reviewed on Mar 21, 2020
    • SBI Cards
      SBI Cards Credit Card
      "Good service"
      0.5 4.0/5 "Great!"
      SBI credit card have offers and reward points but I have not redeem them yet, this is a domestic card, the credit limit is of 50000 which I am very much satisfied as per my need. I got my statement on time. I used this card for personal purposes.The card is very user friendly.
      Was this review helpful? 60
      , hyderabad
      Reviewed on Mar 21, 2020
    • SBI Cards Credit Card
      "Ok service"
      0.5 5.0/5 "Blown Away!"
      I am using SBI credit card for more than three months, there are some reward points and offers in the card. I used this card for online shopping, fuel surcharge and groceries.The credit limit of the card is sufficient and I like the most about the card is that it is a life time free card and very good to use.
      Was this review helpful? 53
      , hyderabad
      Reviewed on Mar 21, 2020
    • IndusInd Bank Credit Card
      "Ok service"
      0.5 5.0/5 "Blown Away!"
      The bank agent suggest me to take credit card from INDUSIND and I have taken it because it doesn't have any annual fee. The offer and reward points are available in the card are good. I am satisfied with the limit of the card. I used the card for general purposes. But it will be nice, if the offers and reward points will be more.
      Was this review helpful? 41
      , jaipur
      Reviewed on Mar 21, 2020
    • IndusInd Bank Credit Card
      "Good service"
      0.5 5.0/5 "Blown Away!"
      I am using INDUSIND credit card for 3 months. The card have no offers available and also there is no rewards. The only benefit is that its a life time free card and the credit limit is only for 75000 I am not that satisfied as i expected to get around 1.5 lakh. Apart from the limit over all experience is good.
      Was this review helpful? 40
      , chennai
      Reviewed on Mar 21, 2020
    • IndusInd Bank Credit Card
      "Excellent card"
      0.5 5.0/5 "Blown Away!"
      I have got INDUSIND credit card few months ago and I have used it for two months now ,the credit limit of the card is Rs.70000 which is a life time free card. The bank have informed me every details about the reward points and offers but I have not got any time check it. I am satisfied with their card service.
      Was this review helpful? 41
      , hyderabad
      Reviewed on Mar 21, 2020
    • ICICI Bank Credit Card
      "Good service"
      0.5 5.0/5 "Blown Away!"
      Am having ICICI credit card for two years, I feel good and have not face any issues. The best part about the card is its a life time free card. I used to get my card statement on time. I used this card for shopping, groceries and for many other personal purposes.I am using the bank mobile app which function smooth and simple.
      Was this review helpful? 51
      , faridabad
      Reviewed on Mar 21, 2020
    • SBI Cards Credit Card
      "Good service"
      0.5 5.0/5 "Blown Away!"
      I have used SBI credit card for 2-3 months, but I have not got any time to check about the offers available in the card. The limit of the card is 38000 and I am satisfied because its a life time free card. I used to get my card statement on time and the net banking is also working very well.
      Was this review helpful? 58
      , faridabad
      Reviewed on Mar 21, 2020
    • IndusInd Bank Credit Card
      "Good service "
      0.5 4.0/5 "Great!"
      Since it is a life time free card offer from INDUSIND so I chosen it and applied through online. I received a call on time and they have done the verification process. Hence I received the card by 7 days, the credit limit is okay for me. Its easy to use for all purposes.
      Was this review helpful? 38
      , chennai
      Reviewed on Mar 21, 2020
    • Citibank Credit Card
      "Good "
      0.5 4.0/5 "Great!"
      CITI has provided good offers and benefits on 2 months before. So I chosen this card and applied through online. It is annual fee chargeable of 500 rupees bu there is waiver off option if I spend 30K within a year. The credit limit is 65K. There is EMI conversion avail for this card.
      Was this review helpful? 37
      , coimbatore
      Reviewed on Mar 21, 2020
    • HDFC Bank Credit Card
      "very good"
      0.5 5.0/5 "Blown Away!"
      I have used credit card from HDFC bank for 1 year which is very good and also very comfortable, its a life time free card and lots of offers are available in the card. This card was suggested to me by my colleague. Mobile banking also functions very smooth.
      Was this review helpful? 64
      , bangalore
      Reviewed on Mar 21, 2020
    • IndusInd Bank Credit Card
      "Average service"
      0.5 4.0/5 "Great!"
      INDUSIND bank credit card have an credit limit of of Rs.75000, there is no offers available in the card and it also have a charges of 3000 along with GST. I hardly receive any remainder messages for my bill payment due to that some time I could not pay my bill on time. I would advise them send my bill on time before the due date.
      Was this review helpful? 40
      , bangalore
      Reviewed on Mar 21, 2020
    • ICICI Bank Credit Card
      "Need to increase the credit limit "
      0.5 5.0/5 "Blown Away!"
      I have been using ICICI card for more than one year. They have provided an annual fee chargeable card and waiver off option is applicable. The credit limit is okay of 50K. Since I need to do purchase about 45K on some of the month so this limit is not sufficient. I swipe the card for travel, shopping and fuel purposes. I have not opted for EMI conversion.
      Was this review helpful? 41
      , kolkata
      Reviewed on Mar 21, 2020
    • Axis Bank Credit Card
      "Good card"
      0.5 4.0/5 "Great!"
      I have been using AXIS bank credit card for 3 years, Its a life time free card so I applied the card through bank. The agent have informed me everything about the card. I used to get offers of 10% on petrol bunk and shopping.The limit of the card is Rs.45000 and I used to pay my bill directly through bank.I am also using their net banking which is very good.
      Was this review helpful? 54
      , kolkata
      Reviewed on Mar 21, 2020
    • IndusInd Bank Credit Card
      "Good service"
      0.5 4.0/5 "Great!"
      I got INDUSIND credit card from few months ago.The card have an EMI conversion. I used the card for multi purposes like shopping, online payment, ticket booking. This is annually chargeable card, I am not satisfied with the credit limit of Rs.75000 as I am expecting more than than 1 lakh.
      Was this review helpful? 43
      , kolkata
      Reviewed on Mar 21, 2020
    • IndusInd Bank Credit Card
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      I got a life time free card offer from INDUSIND bank hence applied through online on three months back. I received the call on time and the process was done on smooth. I got the card on exact time frame. The credit limit is sufficient and they provided good offers and benefit as well.I use this card for shopping and travel purpose.
      Was this review helpful? 30
      , kolkata
      Reviewed on Mar 21, 2020
    • RBL Bank Credit Card
      "Average service"
      0.5 1.0/5 "Really Bad"
      RBL credit card is a chargeable card, I always have to go to Bajaj Finance to pay my credit card bill. I am not satisfied with the customer service which has to be improved. I used this card when ever needed for shopping, fuel surcharge and bill payment.The limit of the card is fine.
      Was this review helpful? 66
      , ranchi
      Reviewed on Mar 21, 2020
    • HDFC Bank Credit Card
      "Good service"
      0.5 5.0/5 "Blown Away!"
      HDFC credit card is very convenience to use, I have been using the card for 4.5 months for Shopping, groceries, fuel surcharge and electricity bill payment also. I pay my credit card bill through ATM. I always get my bill on time, this card was suggested to me by the bank agent.
      Was this review helpful? 52
      , ranchi
      Reviewed on Mar 21, 2020
    • RBL Bank Credit Card
      "Okay service "
      0.5 3.0/5 "Satisfactory"
      I used RBL card for twice only. I get message or call for EMI conversion from banker. It is a life time free card. Once all the process done I received the card by 15 days. I am holding this card past 6 months. The credit limit is sufficient of 30K. Once I tried to convert for EMI of 3 months it was done on time without any problem. It is Bajaj card.
      Was this review helpful? 38
      , chennai
      Reviewed on Mar 21, 2020
    • SBI Cards Credit Card
      "Good card"
      0.5 5.0/5 "Blown Away!"
      I have been using SBI credit card for the last two months, the credit limit of the card was satisfied it was Rs.9,80,000. The bank agent came and collect my document he have informed me every detail about the card. The card have a charges of Rs.2299 in a year. I used to pay my credit card bill through bank. Am getting my card statement in softcopy but I wish the bank can send me a hard copy statement also.
      Was this review helpful? 70
      , gurgaon
      Reviewed on Mar 21, 2020
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