Multiple Credit Cards and You: a Match Made in Heaven?

By BankBazaar | June 21, 2015

Debit cum Credit Card

Lots of Skittles, Snickers, Temptations and Eclairs laid out especially for you may make you fall in love with candy all over again. But too much candy can just as easily give you a stomach ache and loads of cavities. We’re sure you disagree (it’s okay, everybody loves chocolate).
Multiple Credit Cards can seem just as attractive as candy. Here are some advantages and disadvantages of owning multiple credit cards.

Advantages 

Differing benefits: Different types of cards offer different benefits to the card holder. One card might get you reversal of fuel surcharge, while other cards might get you air miles. In some cases, you might get more reward points on certain amounts compared to other cards that offer a lower points system.

Co-branded cards can give you higher reward points on spending at listed partner outlets. Some cards even offer dining discounts. Thus, holding on to one card can deprive you of the opportunity to get all the different benefits associated with different cards.

Managing payments in times of urgency: Sometimes, certain types of cards are not accepted in certain outlets as the retailer may not have partnered with that particular card issuer.

In some other cases, your card may be rejected at the Point of Sale because of technical issues. In such instances, the very purpose of holding a card is defeated and you may have to arrange for cash to make the payment. Holding multiple cards can help in overcoming this problem.

High credit limit: Another advantage of holding multiple cards is that you get an overall high credit limit. Sometimes, individual cards do not offer a high limit and their limit is easily exhausted.

When you have multiple cards, you can divide your expenditure among different cards, and thus enhancing your overall spending capability.

Disadvantages 

Annual charges and fees: The first disadvantage of holding multiple cards is to paying the annual charges and other fees on each of these cards. This increases the total amount you spend on maintaining all the cards. When you have a single card, you can definitely reduce your expenses on this account.

Managing different payment due dates: Multiple cards means different payment due dates and the effort required to track all these different dates. It is very likely that you may miss a payment due date although you may not intend to skip the payment. This leads to poor management of payments and will ultimately affect your credit score.

Managing credit health: When you hold several cards in your wallet, you will be tempted to spend even if you don’t have the necessity to do so. The ability to spend is greatly enhanced when you have so many cards. This may result in unnecessary expenses just because you are able to pay using plastic money. However, when the payments are due, you may be unable to honour the commitments. Being responsible and disciplined is very important when you hold more than one card.

While holding multiple cards can give you multiple benefits, they also require the effort and time to manage them. It’s good to use more than one card if you’re sure you’re not going to end up with a stomach ache and an empty bank account. Éclair?

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