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Pros And Cons Of Having Multiple Credit Cards
If you are an existing cardholder, it is implied that the fear of stepping into an unmanageable debt trap would not let you buy another credit card. However, this fear does not act as a barrier to having multiple credit cards for the ones who are financially disciplined. For more information refer to this article: https://increaseyourcredit.blogspot.com/2022/11/pros-and-cons-of-having-multiple-credit-card.html
Pros:
1. Multiple Rewards:
One obvious benefit of carrying multiple credit cards is that you can take advantage of various reward schemes. You can use the card that gives the best grocery rewards at the grocery store and use the travel rewards card to buy airline tickets.
2. Improves credit score:
The only key to having a good credit score is to use your credit card effectively. Proper usage and timely payments of your credit card bills can help improve your credit score to a great extent, let alone maintain it. Having multiple credit cards will directly multiply the benefits and effective use of each will improve your credit score to a great number.
Cons:
1. 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 effect on credit scores.
2. There is an increased debt risk:
While having multiple credit cards provides you access to a greater credit limit, it also increases your debt risk. You may end up spending more than you should. If you don’t use your credit cards wisely, you may even fall into a debt trap.