Advantages Of A Second Credit Card

By BankBazaar | April 27, 2016

Advantages Of A Second Credit Card

Confused about whether to get that second Credit Card or not? Well, it’s only natural to be confused about such an important decision. How do you know whether multiple Credit Cards are good or bad? The answer is that having multiple Credit Cards is actually good for you! How, you ask? It’s simple, really. You can enjoy multiple rewards, deal with emergencies and even improve your Credit Score. It’s true! Keep reading and things will start to make sense.

The Backup Plan

This may have happened to you. You’re on holiday abroad and suddenly, for no reason you can think of, your Credit Card is declined. So, here’s the thing; sometimes Credit Card companies block cards when they notice unusual activity (such as expenditure in a foreign country) on it . Sure, this is a move that’s meant to protect the card owner from fraudulent activities. But, waiting for the card to be re-activated may take time and you could be stranded if all you had was that one card. Not a pleasant thought, right? This is where a second Credit Card can play the hero, saving the day and helping you deal with emergencies. Don’t you agree?

If you still think a second Credit Card isn’t for you, make sure you have other backup payment options. But hey, there are more benefits to having a second Credit Card than just being a backup for the first, so keep reading!

Multiple Rewards

Each Credit Card offers different types of benefits. Flying is more fun with Airline Credit Cards. Shopping is enjoyable with Shopping & Cashback Credit Cards. You might be a traveller who enjoys shopping. In this case, you can opt for an Airline Credit Card and a Shopping & Cashback Credit Card. If you love going on long drives and enjoy luxury, you can benefit from Fuel Credit Cards and Premium Credit Cards. If you have multiple Credit Cards, you get to enjoy multiple benefits and rewards. It’s as simple as that!

Give Your Credit Score A Boost

If you split your expenses between two cards, your credit limit increases and your credit usage decreases. This can positively affect your Credit Score. Want to know more? Well, as your credit limit increases, your debt usage decreases, as it is distributed between multiple cards. Thus, your debt utilization ratio lowers too and this in turn positively impacts your Credit Score. Got it?

Emergencies Come Unannounced

We’re sure your will agree that emergencies always come unannounced and many times, liquid funds can be a problem. What do you do in such a situation? You can always swipe your Credit Card in an emergency and given that every Credit Card comes with a credit limit, it will only work to your advantage to have more than one card at your disposal. You can clear you Credit Card debts as soon as you have liquidated your funds. In fact, you should make it a point to do so.

Simple tips to manage multiple Credit Cards perfectly

  1. Keep track of the due dates. Space out the payment due dates to avoid missing payments. This makes for easy tracking too.
  2. Do not apply for too many Credit Cards at once as this can negatively affect your Credit Score. Get comfortable managing one card before applying for the next!
  3. When spending, make sure you use the right card based on the rewards offered.
  4. Don’t swipe your cards just to earn rewards. Be a smart and wise Credit Card user.

Additional Reading: Credit Cards with Zero Annual Fees in 2016!

So, now that you know the multiple benefits of multiple Credit Cards, why don’t you go ahead and explore our amazing offers?

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