In today’s time, credit cards have not just a source of payment, but have become a part of smart money management.
Should there be more than one credit card?
Backup card for emergency
More card = more rewards and cashback
Credit limit increases the credit score improves?
More offers, more savings
Profit from different billing bicycles, risk also
More cards = more management
Control on spending habit is important
What do experts say?
Tips for smart users
Should there be more than one credit card?
Nowadays every bank is offering credit cards filled with rewards and offers. But should you keep a card or more? Let’s understand the advantages and disadvantages.
Backup card for emergency
If a card does not work for any reason,
So the second card can be useful immediately.
This backup is very helpful in emergency.
More card = more rewards and cashback
Every card has its own specialty – someone offers on petrol, and some on travel.
Many cards can be beneficial for getting more rewards at different expenses.
Credit limit increases the credit score improves?
Having many cards increases the total credit limit.
This keeps your credit utilization ratio low
And the CIBIL score is better.
More offers, more savings
On cards of different banks
EMI, cashback and discounts are available.
Being limited to a card you can miss many offers.
Profit from different billing bicycles, risk also
The bill date of each card is different,
Due to which payment planning becomes easier.
But forgetting the date, late fees and interest may be shocked.
More cards = more management
Du date of each card, interest rate,
It can be difficult to track late fees.
Mistake may be expensive.
Control on spending habit is important
Many times due to having more cards
People start spending more than the limit.
The borrowing increases, also interest.
Result – Financial stress.
What do experts say?
If financial advisors believe:
2 to 3 cards are enough.
Take the card according to the need and the ability to repay.