In today’s world, what’s the one thing that you will find in the wallets of your friends and colleagues? Plastic money. For a generation that’s always online, Debit and Credit Cards are essential financial tools.
You can have a savings accounts and a corresponding Debit Card. It’s quite common for people to hold multiple Debit Cards. But when it comes to Credit Cards, you may be slightly apprehensive of holding multiple Credit accounts. In truth, having more than one Credit Card can be a good credit management strategy. Having multiple Credit Cards can improve your credit score. So, if you’re thinking of adding another Credit Card to your wallet, you may be headed in the right direction.
Here’s why you need to get another credit card:
1. Better credit management:
You can divide your expenses between two or more Credit Cards. That way, none of your cards will be maxed out. You can also pay the bill of one Credit Card with another, to manage your Cards better.
2. Business Credit Card:
If you run a business, you can easily keep track of personal & business expenses by using separate Credit Cards for each. That will make bookkeeping easier for your business.
3. More rewards:
We all know that Credit Cards come with rewards. Different Credit Cards come with different benefits. While some Cards give you rewards on shopping, others offer rewards on fuel or entertainment. Travel Cards have special offers on travel and accommodation expenses. A combination of Credit Cards could help you reap the most benefit out of these rewards.
4. Improve your credit score:
That’s right. Your credit utilisation ratio is likely to improve if you hold multiple Credit Cards. It’s simple math. Your credit utilisation ratio is a ratio of the sum of all your debts to the sum of credit limits of all your accounts. With each new Credit Card, your credit limit increases and the overall ratio decreases. A decrease in your credit utilisation ratio gives your credit score a boost.
5. It’s good to have a backup:
Have an emergency but your credit card has hit its limit? Need your card immediately but it is stolen or lost? In such scenarios, getting a new Credit Card issued from your Bank could take a few days or even weeks. It’s a good idea to have a backup Credit Card for times like these.
6. Share benefits with a loved one:
Many banks offer an add-on Card along with a Credit Card. This supplementary card comes at no extra cost, and can be used by your family members. You can share the benefits of your Card with the add-on Card holder, and have a single, combined credit limit. Click here to get an add-on RBL Bank Credit Card.
In the era of cashless banking, holding multiple Credit Cards can be very useful. That said, it’s important that you keep your debt at bay. Don’t overindulge: use your Cards responsibly. Keep track of your CIBIL score reports, and don’t miss payment due dates. Pay your bills on time and reap the benefits of your multiple Credit Cards.