Nowadays the prevalence of credit card is increasing. Banks also try to give credit cards to more and more people. Often at shopping malls you are bumped into a bank agent offering a credit card, online you are given many offers. Many people have started keeping more than one credit card now, but have you ever thought that its benefits are more or disadvantages.
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Today we will tell you what are the advantages and disadvantages of having more than one credit card.
Profit
- Balance transfer facility: One advantage of having more than one credit card is that you can use the balance transfer facility when you are unable to pay the credit card bill due to cash crunch. Under this facility, you can pay one credit card bill with another credit card. However, for this you also have to pay some interest.
- More buying options: In the online shopping era, different shopping websites offer discounts or cashback on different credit cards. If you have more than one credit card, then you will have more options to choose from and you will be able to shop from the website where the lowest discount is available.
- Higher limit is available: It is very difficult for a person doing a job to get a credit limit of more than 10 lakh on a credit card, but you can take 10 cards with a limit of one lakh from different banks.
- Credit score is good: One big advantage of having multiple credit cards is that if you keep paying all your cards on time, then the credit score becomes very good.
Loss
- You can get caught in the trap of EMI because you will shop more by having more credit cards. While making EMI, it seems that it can be repaid easily but it does not happen. By having more credit cards, more EMI can also be made on you.
- If you have more credit cards, then you will do more shopping and the debt will increase on you. Spending on credit cards is also a kind of debt.
- If there is an annual fee on your credit card, then you have to pay a big amount every year.
If you want to have more credit cards then do this work-
- Do not keep more than 2-3 cards
- Choose a lifetime free credit card. Cards that do not have to be paid annually
- Use credit cards carefully. Think well before shopping
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