Advantages and disadvantages of having more than one credit card.

There are both advantages and disadvantages of having multiple credit cards. Despite having multiple credit cards, you may face financial difficulties.  If  card holders do not keep a constant eye on the credit card transactions, they will surely fall into the debt trap. Experts say that if there are many cards, then it is important to use them wisely.

Get the right card and use it properly: One should not hold too many credit cards.A person should have  right credit card and he should  use it sensibly. Choose a card that offers more reward points or offers.

Use less credit card: It is better if credit card is less used, it is important to maintain its usage ratio. A user should not use more than 30-40 percent of the credit limit at a time. A user can have 5 different cards, but if they are used 20-30 percent then it is good. If the usage of the card is 80 percent to 90 percent, then it shows that the user will get into debt. So, what matters is not the number of cards, but how to use it.

Timely Payment Important: If someone has many cards, then it is fine, but if the payment of these cards is not made at the right time  it will affect the credit score. Late fees on credit cards can be avoided by keeping monthly reminders on each card due date or on the phone to pay bills. If users plan their expenses and repayments, then the number of cards does not matter. The user should be able to repay the amount spent using it.

Keep old cards with you: Users should keep their oldest card with them, as they have a very long credit history.



4th Professional Medical Student. Karachi Medical and Dental College.

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