The question that most credit card users have is: how many credit cards is convenient to have? In this post we will clarify your doubt so that you can make the best decision.
The variety of credit cards is very wide and each one adapts to different needs. Therefore, many users prefer to have different cards to cover each of their expenses, but sometimes if we do not know how to use them responsibly they can become a big headache because of the indebtedness they cause.
Before having more than one credit card you should consider the pros and cons this entails so as not to have any problems with your credit history in the future.
Advantages of having additional credit cards
Even if you do not think having more than one credit card has advantages, find out what they are:
Major credit line
The banking institutions offer you a larger line of credit if you have additional credit cards: as long as you maintain an exemplary credit history. With this advantage you can have access to larger purchases without having to affect your pocket.
Generate an exemplary credit history
By using more than one credit card with responsibility and payment fulfillment, the bank will confirm that you are a reliable user. Therefore, your credit score will be better and you will have the opportunity to access higher credits.
All credit cards have different insurance that benefits the user. If you have more than one plastic you can use each one at any time you want.
You will have an extra backup
In case you lose or are the victim of a theft of your credit card, you can count on a backup in the replenishment process. They may also be useful in your trips abroad to have acceptance at ATMs with any of them.
Disadvantages of having additional credit cards
It is important that you also consider the disadvantages of having more than one credit card. Next we tell you what they are:
Accumulation of debts
If you intend to have more than one credit card you should be aware of the cut-off date of each, otherwise the debts can accumulate and affect your credit history.
Investigate the annual fees and conditions of all your credit cards to avoid accumulating debts that become a headache.
You can count on several credit cards and not use them all, but the banking institutions continue to make an annual and even monthly discount that can harm you.
Before having more than one plastic consult the conditions to avoid having to pay for a plastic that you are not taking advantage of.
What measures should I take when having additional credit cards?
If the advantages of having more than one credit card have convinced you, you should take into account the necessary measures to be able to enjoy the benefits that this entails.
Do not use all available credit
It is possible that having more than one credit card makes it easy for you to consume more than you should and exceed the available limit. I recommend that you do not do it or at the moment of liquidating your monthly fee it will be impossible to settle all your debt.
Remember that the most important thing to use a credit card is to pay your purchases on time or otherwise the debts increase.
Do not buy impulsively
Probably having several credit cards you will feel that you have more capacity to buy and in reality it is not like that. Think if you can really pay what you want to consume so as not to suffer at the moment of liquidating your monthly payments.
Consider your expenses and think if you really need to make that purchase so you do not regret later.
Have an emergency fund
Having an emergency fund for unforeseen expenses that arise will put you at an advantage and you will not have to use your credit card in those situations. You will also learn how to better manage your money in this way.
Pay on time
The best thing you can do to have more than one credit card is to keep track of the cut dates and settle them in a timely manner. This way you will avoid extra charges that could harm your pocket.
I recommend that you establish reminders to settle each of your credit cards. This way you will not be able to forget it and your credit history will remain impeccable.
Apply for low interest credit cards
How do you know, you must pay the monthly fee for each of your credit cards and to not affect your economy, I recommend that you select the ones that best suit your possibilities and that the interests of them are not so high. In this way you can take advantage of them better for what you want and not suffer at the end of the month.
Do not apply for new credit cards to settle previous debts
This is the most common error of the users and obviously the worst. It will be useless to apply for a new credit card to settle previous debts because as a result you will end up more indebted than at the beginning.
In case you feel stuck with your debts, ask for advice in your banking institution to find a more feasible solution that does not affect you in the future.
Keep an administration with your expenses
If you plan your basic expenses every month, using your credit cards responsibly will not be a problem. Do not complicate your life and learn to administer.