What Are The Pros and Cons of Having Multiple Credit Cards?

Nowadays, there is a trend going on of having multiple credit cards, owning multiple credit cards has lots of pros and cons. If one can use it smartly then it can add a huge advantage for its users but in the case of mismanagement, it can become a dangerous weapon for destroying financial health.   

Advantages of having multiple credit cards:

Low Credit Limit Utilization:

Using multiple credit cards can help to keep the credit utilization ratio low, but if someone owns a single credit card then there is a possibility to use maximum credit limit, which is very bad for achieving the good credit score.

Helps To Build Good Credit Score & Offers:

If someone has more than one credit card and use 30% of the credit limit, it will help to maintain a good utilization ratio which will indeed help to bring the credit score higher.

Along with this, those who own multiple credit cards and make the payment on time will get a very good credit score and worthiness of individual also increase with passing time, which allow them to access more credit limit as well as benefits.

Increases credit limit:

If someone can maintain the above-mentioned rules then the credit limit will increase which will allow them to spend more yet keeping the utilization score lower.

Disadvantages of having multiple credit cards:

Credit Card Trap:

People normally tends to keep several credit cards to opt different offers, though data shows that many people choose multiple credit cards to pay one cards minimum billed amount from the another card which is a very costly matter and in most of the cases they fall in the credit card trap.

Difficult To Manage:

Every card has its own billing cycle, credit limit and payment due date, which is very tough to manage and if someone misses one single payment it will not only attract the huge interest as penalty also the credit score will decrease drastically.

Debt Trap:

By owing multiple credit cards normally people lead to overspending which in turn add to bad debt.   

How to get the benefit of having multiple credit cards:


To reap the benefit of having multiple credit cards use not more than 3-4 cards as these many cards will surely cover most or all of your needs. One you can choose for shopping as well as utility bill payment, the second one for cashback and rewards, the third one is for special access to premium places and the last one is for refueling purposes.  

Also, try to repay the full billed amount within the due date and try not to use more than 30% credit limit.

If possible try to make due dates separate as it will give you ample amounts of time to arrange funds to pay the credit card bill.  

After reading this article hopefully, you get all the answers regarding the advantages and disadvantages of having multiple credit cards.

Still, if you have any question/s, do let us know in the comment box and we will try to resolve as soon as possible.

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