How Many Credit Cards Should I Have?
Is it good to carry multiple credit cards but it is important to know how many credit cards should I have? and how to use it?
It depends upon the user’s financial responsibility and how could they manage the credit card transactions and timely repayment of it.
The answer should not be the same for every person that how many credit cards should I have? To carry a credit card is easy but managing the usage of these cards are quite difficult.
Things To Remember That How Many Credit Cards Should I Have And What Are The Before Applying To Multiple Credit Cards:
Keep your first credit card inactive status by making payments before the due date. It will built-up your credit score stronger and it will not affect your CIBIL score.
Your credit history will be a good sign for applying to multiple credit cards. Some credit card comes with yearly fees that you have to pay as per the process otherwise you have to pay the interest on that fees.
Individual needs and requirements are well enough to decide how many credit cards should I have? The percentage of multiple credit card owners are rising day by day.
Having You can collect reward points by using your credit card at shopping centres and even at petrol pumps.
Related article: Credit Cards with best reward programs
How Many Credit Cards Should I Have And How To Manage Them?
Proper utilisation of credit cards will help to improve your CIBIL score so managing a credit card will not impact your bank accounts directly.
It is a type of loan amount offered by a bank without any interest up to the bill due date from using the credit card. You can make a repayment of your credit cards within the due date to avoid extra charges.
Below are some essential tips to manage my multiple credit cards:
1. Timely Repayment:
Internet banking is the most convenient option for managing multiple credit cards. You can set up auto-debit reminders on or before the due date of multiple credit cards.
So try to use these cards very carefully because you have to pay the utilised credit amount into the credit card again within the given timeline.
2. Use Upto 40% Of the Credit Limit:
Try to use up to 40% of the credit limit of your credit cards to keep the remaining credit limit for backup in case of any emergencies.
3. Remember Your Credit Cards Billing Cycle:
The best answer for how should I manage my multiple credit cards is to know the billing cycle and due date of each credit card and how to manage the repayments of all the cards.
How Many Credit Cards Should I Have? – Advantages:
1. A convenient way to purchase something bigger than expected is by using the instalment facility.
2. You can earn a lot of reward points and cash backs on your credit card shopping and these credit points are equally calculated as money at the time of shopping.
3. It is an opportunity to build your credit score. A good credit score helps you to apply for loans or for applying for multiple credit cards.
4. You can manage the utilisation of money on other expenses because you will get a grace period for the repayment of the credit card.
5. No documentation is needed for converting the payment into EMI’s. Whereas in paper finance, documentation is a must and sometimes it would be a complicated process.
How Many Credit Cards Should I Have?- Disadvantages:
1. Carrying a balance over to the next few days or up to the next month can affect your pocket very badly. It charges the highest rate of interest on your unpaid amount.
2. Using your total credit limit is again a dangerous sign for managing your repayment. So try to utilise your credit card amount up to 40% and avoid extra interest rates.
3. Missing your credit card payment is one of the major factors that affect your credit as well as your CIBIL score. You have to activate auto-debit services through Internet banking to make the repayments before the due date.
4. Misusage of credit cards is again a disadvantage of carrying a single or multiple credit card. After all, you are the only responsible person for all the repayments.
Carrying single or multiple credit cardhos could impact your pocket if you are not aware of its advantages and disadvantages.