An individual can hold a varied range of credit cards in India with respect to features and usage terms and conditions.
It is also easy to apply online for credit cards. Before juggling with multiple credit cards, you must determine how many cards you ideally require. Following are few pros and cons of having multiple credit cards in India:
Advantages of having multiple credit cards:
- Helps in keeping credit utilization ratio low: When you have more than one card and utilize 50% of the limit, it will help keep a good utilization ratio.
- Build credit score: People with several credit cards making all payments on time will lead to a perfect credit score. This will affect the creditworthiness of the individual.
- Increased rewards: Multiple credit cards give card-holders access to more perks and benefits, in the form of rewards.
Disadvantages of having multiple credit cards:
- Difficulty managing credit: Having more than one card can make it cumbersome to keep track of each billing cycle, credit limit and payment due date. This can sometimes result in missing a payment date and affect the credit scores.
- Lead to unnecessary piling of debt: Having access to more credit can lead to overspending and will, in turn, pile up the debt. If cardholders are not wise enough while swiping the card, it can lead to overspending.
- Risk of low credit score: With multiple credit cards, you may be involved in excessive spending, which could increase your debt payments and lower your credit score.
Conclusion
There are pros and cons of having multiple credit cards. Having more number of credit cards, each with different features is not risky, provided you can use them judiciously. Most of you will agree that having multiple credit cards can either help or hamper your credit score, depending on your credit management.
Must Read:- Top Things to Consider While Selecting Your Credit Card
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