Let's begin by looking at How Many Credit Cards Should I Have? If having more than one credit card and looking for more than one credit card. You have to know what are the pros and cons of having multiple credit cards
Pros
1. You Can Boost Your Credit Score
Your credit report will be more diverse with the more credit cards that you have. If you don't make any late payments on your bills, you can be proud of your credit score and it will likely help you when you apply for a loan.
Numerous cards can greatly improve your credit history. However, don't let them ruin your financial well-being by causing unsettled debts and high credit utilization (meaning that you often exceed your credit limit).
2. You can have different cards for different purposes
For large purchases, such as electronics and groceries, a credit card that's used for grocery shopping might not be the best. This is because your bank will not offer cashback on purchases. You don't want your credit to run out before the month ends for a single item or worse if you don't have enough cash in an emergency situation, it is best not to.
A healthy financial plan can include two to three credit cards that are used for different purposes. You can, for example, assign one card to your everyday needs (petrol, food, and grocery) and another for major expenses (medical bills, insurance, holidays).
A basic credit card can offer you some benefits, but a second credit card may have additional benefits that are tailored to your spending habits and lifestyle. This will allow you to better manage your finances and give you more opportunities to enjoy your life.
It's not all fun and games to have more than one credit card. When you have multiple cards, there are important points to remember.
Cons
1. Taking out multiple credit cards counts as a hard inquiry
It is not a good idea to apply for multiple cards at once. This is because once all your lenders pull your credit score, they will record them as hard inquiries.
Simply put, it means the creditor sees a high credit score as a sign that you are at risk. Your credit report will be negatively affected by this.
2. It is more difficult to manage
Multiple credit cards can make it difficult to have a solid financial plan. You are more likely to miss a payment on a particular account and end up in debt that you don't know where it came from.
You might also find that you spend less when you can swipe multiple cards to make large purchases. You might find it difficult to resist the urge to shop, knowing you can get the items you want without paying first.
What number of credit cards should you have?
Being consistent and on time is the key to maintaining a good credit score.
A healthy spending limit and payments. A single credit card is not enough to ensure financial stability. However, it's possible to have multiple credit cards depending on your spending habits.
You should consider multiple credit cards. They can improve your credit score, and offer great rewards and promotions. Check out our credit card comparison page for more information about the perks you will get with a new card.