A Choice of Credit Cards
Abhishek had started earning well in his early twenties and decided to acquire 2 or 3 credit cards for his varied needs! He was discouraged by a lot of people because keeping more than one card was considered suicidal due to the additional charges associated with credit cards. However, not everyone realised the fact that keeping multiple credit cards could even prove to be a boon for some people in the long term.
Abhishek was able to prove everyone else wrong when he started using all the credit cards successfully. He not only made a plan to use each card to its merit, but also kept a check on the rising charges so that the debt remained under control. Another good thing that he did here was to improve his credit score over a period of time so that he could remain in the good books of the credit card companies. This is exactly what multiple credit cards could do for you if use them properly. However, if you cannot religiously keep a tab on your spending or monitor each card prudently, then multiple credit cards can become an hindrance rather than an aid to money management, so tread with caution depending on the kind of spending habits you have!
Banks in India haven’t set any restrictions on the number of cards you can carry. You can easily find customers using five credit cards in India and the ones that don’t even have a single card. Due to the fact that credit card usage has a huge impact on your CIBIL’s credit score, you need to understand how keeping many credit cards can be good for you. According to the rule of the thumb, you must have two active credit cards based on the interest rates, credit limit and the rewards being offered by the respective bank. In actuality, you must keep the number of credit cards which you can afford. Avoid using more than one card if you don’t have a big monthly income.
When you have a high amount of outstanding balance to be paid, your lenders will see you as a high risk candidate. Lenders usually feel that such individuals are likely to miss their payments in the near future. So, to be on the safer side, you need to keep your outstanding balance about 10% to 30% of the overall credit limit. By doing this, you’ll get some breathing space and will also able to borrow more funds, if the need arises. There are various other things that are to be noted down by a credit card user for a superior usage experience.
Have a closer look at the special credit card deals being offered by the top 5 banks in India.
| Bank | Exclusive Features |
| Axis Bank | Fuel surcharge refund, plus point rewards, global acceptance |
| Kotak Mahindra | Interest Free Cash Withdrawals, Zero Charge EMI and free for life |
| ICICI | Complimentary access to airport lounge and cash rewards |
| SBI | AVIS car rental deals, domestic hotel discounts and go indigo air ticket discounts |
| HDFC Bank | Firstcry.com discounts, Café coffee day discounts and myntra.com discounts |
As on 6th April, 2014
Older is Always Superior
One of the deciding factors that affect your credit history and score is the account’s age. The age of your oldest credit card will come into play while the banks decide to open a new account under your name. This is one case where older is always superior because you can earn more points for keeping a long-established relation with the bank. The credit history of your old card is always better; and for taking loans, you could use your old credit card. You could keep an extra card for several other references and shopping online. You should never close down your good old credit cards, even if you’re not using them frequently because they will surely work towards building a solid credit history for you.
The Right Kind of Credit Cards to Opt for
The Indian credit card market is flooded with special offers and deals that are quite alluring for the customers. All responsible card users can acquire several credit cards simultaneously according to their needs. If you’re a frequent traveler, then you could go for a travel credit card being offered by popular banks like HDFC and SBI. Petro cards and special cards for getting discounts on restaurant bills are also highly popular in India. All those who are looking to go for multiple cards can consider buying these kinds of credit cards for a better experience.
Always remember that using credit cards smartly is the most significant thing that you’ll be required to do irrespective of the number of cards you have. So, check out the best credit cards on https://www.bankbazaar.com/credit-card.html.