5 Reasons Why You Should Have More Than One Credit Card.

We often read about both the helpful and harmful effects of using a credit card. Fake news regarding the usage of credit cards is quite common and one of the reasons why people are scared to use one. But, you can always read the myths and facts about credit cards over here. It is a potent financial tool that must be handled with responsibility. 


But did you know the perks of having multiple credit cards? Well, let me help you! Here is an article listing out five reasons why you should have more than one credit card to let you know the real truth, benefits, and importance of credit cards. The more, the merrier!

1. Credit Score

Indeed, we don’t know the secret behind the calculation of credit score. We cannot use Veritaserum in cards. However, we see the credit utilization ratio is equal to the best balance across all credit cards divided by the total credit limit. So for a reasonable utilization rate, a higher credit limit and a lower balance are necessary. 


And we also know, to get a higher credit score, we should have a lower credit utilization ratio. The credit line utilization ratio per card will be lower than the recommended 30% by spreading charges. This percentage value indicates that you are only using less than 30 percent of the total cost credit available to you. 


Hence your credit score will be much higher with multiple credit cards in your hands. Don’t forget you don’t have to risk your credit scores due to significant expenses by using a single card!

2. Deals and Offers

Trust me. This is my most favorite reason to possess multiple credit cards in my pocket! It is quite evident that all credit card issuers have connections and collaborations with retailers, service providers, merchants, and many more. There are myriads of opportunities to avail rewards when a credit card belongs to you. But, generally, the cards with deals in groceries may not have such offers for traveling.


Similarly, cards offering rewards for traveling may not offer so many deals for fuels. Well, of course, you can survive with one credit card if you are ready to miss out on all these offers and deals! You cannot enjoy all the benefits of credit cards with a single credit card. Therefore the more tickets you have, the more chance you will get to celebrate all the deals and offers available!

3. Payments 

We all know some cards are not approved or used for certain payments or purchases. I don’t have to explain such scenarios, especially if you are a person who travels or shops a lot! So what will we do if we don’t have an alternate payment option with us? Give up on the purchase? 


Believe it is your fate that you are destined not to have the purchase and then move on with life? No!!! Therefore it is highly recommended to have multiple credit cards in your possession to meet any alternative payment requirements. 

4. Backup 

More the number of cards means you have a backup plan. Why do you need a backup plan? What if you lose your only credit card, but you meet with an emergency? Or worse, what if your credit card is stolen, it is that time of the month to pay your bills. 


Even worse, what if you are on a date, your card doesn’t swipe, but you promised to split the bill? Terrified? Embarrassed? Don’t let that happen to you. So, make sure you have access to a backup plan. After all, what is life without a backup plan?!

5. Interest

No, I’m not talking about your interests or obsession with large numbers. I am talking about the importance which we must be familiar with when we own a card and handle finance. Well, it is something which we must have a clear idea of since it is not just managing your money but your life as well. Yet, we fail to understand the concepts of interest. But, it is evident that with multiple credit cards, you will obtain a more extended interest-free period! 


If you are smart enough, you can easily manage your credit cards by juggling your expenses and maximizing and making use of the interest-free period. You can increase your savings by transferring credit card balances to a new card that has a lower promotional rate. 


Also, to avoid interest after the rollover, we can stop using the card with an unpaid balance and, instead, use your other credit card for your expenses. Also, high interest on new purchases is out of the question if you have another card! Saviour in distress!


Credit cards are like a two-edged sword. People often say credit cards sing us the lyrics of Taylor Swift’s song, “Darling, I’m a nightmare dressed like a daydream.” But believe it or not, you are entirely safe if you know how to tame this so-called angry bull. 


Make sure you are responsible and pay on time. If anything, the number of pros are remarkably outweighing the number of cons in having multiple credit cards. So make sure you don’t let this opportunity slide away. Go ahead and live your life! Remember, you only live once. So live it safely and happily.

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