Credit card Nowadays a common financial instrument has become. Many people have more than one credit card. It is true that credit cards give us the facility to shop with the money which we do not have immediately. But we should also remember that next month we have to pay that money spent. Sometimes excessive use of credit cards implicates people in debt trap, where not paying time can cost up to 24% interest and fine. Today we will talk about this topic as to what are the advantages and disadvantages of keeping more than one credit card.
Benefits of keeping more than one credit card
- Usually a credit card has an interest-free credit cycle of about 45 days. When you have more than one credit cards, you can extend this period further. You can increase the credit bicycle for about 45 days further by paying a credit card bill with another credit card. This is called a credit rollover.
- Keeping credit cards of different banks gives you a chance to avail different types of reward points, cashbacks and special offers. With this you can save on your shopping.
- Some credit cards offer special types of offers or discounts that last long. For example, some card movies give constant good discounts on tickets or hotel booking. If you travel frequently or watch cinema, such cards can prove to be very beneficial for you.
Loss of more than one credit card
- When you keep more than one credit card, you may have to pay annual fee (annual charge) for all those cards. Therefore, it is important that you calculate whether the benefits from the cards are not less than their annual charges.
- Keeping more credit cards increases the financial liability burden on you. Also, having more cards also increases your total credit limit, which also increases the chances of getting stuck in the debt trap.
- When you have more than one credit cards, you have to take care of different payment dates and credit cycles. If you have three or more credit cards, the possibility increases that you forget to pay a bill. Many times, it is better to keep things simple and organized.
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