How many credit or debit cards do you have? Were you advised to keep only one credit cards? What the advantages that you can enjoy when you have multiple credit or debit cards? To find the answers, Credit Health Care has written about the most important points to remember about buying more that one credit card.
Now, let us talk about credit cards and its advantages and the reason to have more than one. There are many important benefits that the cardholders must know about. They are enjoying multiple options, having more chances of acceptance, making better credit history, acquiring more emergency funds, taking maximum rewards, using transferable points programs, improving credit utilization ratio, helping to manage disputed charges, ensuring maximum protection from fraud and also that it is ideal for small business owners. However, it should be noted that, most people are known to have around three to four credit cards. You can have as many as you want. so long as you can manage them in a proper manner. Also, do note that, if well managed, this can open doors to more perks, benefits, cashback’s and rewards.
What are the major mistakes that cardholders make while having multiple credit cards? What are the key benefits of having multiple Credit Cards ? I have been a credit card holder for long but now, I am thinking of getting another one for the benefit of my finances and spending needs, so can you suggest me of the steps that I should follow in order to fulfill my needs? To find more solutions about keeping more that one credit card, keep reading the blog.
Can enjoy Multiple Options
If you have more that one credit card, then you can enjoy multiple options of spending and also managing their credit. The people with high credit limit are considered safe and reliable by banks, which makes it easy for them to get loans.
In addition to that, their increased credit limit acts as a proof to banks that they can be trusted with money. Moreover, you should know that, while negotiating for a loan, credit cardholders can use their high credit limit as a reason to get a good deal.
More Chances of Acceptance
There are many online and offline stores that do not accept a particular credit card. However, having multiple types of credit cards will also increase your chances of your car getting accepted and you can make the necessary purchase.
However, when you are applying for second credit card, it is wise to narrow down your choices early and apply for your most desirable card first. If you already own one, there are more chances of getting approved for another.
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Make better Credit History
Do understand that, having better credit history is always very important. You should note that, by utilizing multiple credit cards, you will be able to boost your credit score to a great extent.
However, this is especially true if you have balances on all of the accounts and you always make your payment on time. When credit bureaus calculate your credit score, they will take notice of the different accounts that you have in your name. The on-time payments have the ability to significantly boost your credit score over time.
Have more Emergency Funds
It is very important to keep emergency fund and this is possible by keeping multiple credit cards. A high credit limit on credit cards can help cardholders in situations where they are in urgent need funds.
Moreover, if they have a high limit, they do not have to borrow money from another individual or opt for a loan. Also, if they wish to take a loan, their limit will make it easy for them to get loans from their bank at a good interest rate.
Do take Maximum Rewards
The next in line is that, most credit cards to they offer some type of a reward for making regular purchases with them. Do remember that, you can then use these rewards to buy a variety of different things that you might want.
However, do note that, when you use multiple credit cards, you will be able to plan your purchases so that you can take advantage of the rewards that you really want. You might be able to use these points to purchase airline tickets, hotel accommodations, meals, clothing, and many other items that you need. You may also like read our post regarding top travel reward credit cards to know.
Use transferable Points Programs
If you have multiple credit cards in transferable points programs, then you can easily transfer those points to twelve different airline, hotel and also other kinds of partners. This is the main reason why transferable point currencies are so valuable.
However, do remember that, when you transfer points to a partner program, your redemption value could grow. Moreover, the value of points or miles in loyalty programs may vary depending on how you redeem them.
Improve Credit utilization ratio
When cardholder chooses to increase credit limit to be a bigger amount, but continue to use only less the amount, then the cardholder will be using less than half of the credit limit. Moreover, by increasing their credit card limit, cardholders can lower their card usage.
Do remember that, in this way, the cardholders’ credit utilization has been reduced. Here, the expenses of the person has not reduced, but cardholder will be considered as a responsible user by financial institutions.
Help Manage disputed Charges
It sometimes become very beneficial for having multiple credit cards. There can be a situation, when you find some discrepancies in your credit card, which needs to be sorted and you can dispute incorrect charges on your credit card statement.
However, for obvious reason, the disputed credit card can be blocked and during that period, you can start using you other credit card for your monetary expenses and other financial activities.
Maximum Protection from Fraud
If you have multiple accounts and handle them properly, this is going to boost your score. However, remember that, you can simply call your credit card company and tell them that someone has compromised your card. At that point, the credit card company will turn off the credit card and you will not be liable for any purchases made with it.
Moreover, another major benefit of using multiple credit cards is that you will be able to take advantage of financial safety. By making purchases with multiple credit cards, you will be able to add a layer of safety to each purchase.
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For Small business Owners
Lastly, we will be discussing about the advantages of having multiple credit cards for small business owners. In most cases, the small businesses need to deal with transactions on a daily basis.
For that reason, keeping more that one credit card is the need of the hour. Moreover, you can take professional help from credit card experts in order to mange your multiple credit cards and also learn about the ways to deal with them for small firms.
Things to Remember:
So, we have helped you understand about the many advantages of getting more than one credit card for yourself. Many people choose to utilize multiple credit cards because of the many benefits that they provide. Although credit cards can get you in trouble, if you know how to handle them, they can be helpful as well. Here are a few of the benefits of having multiple credit cards. While managing several credit cards can be quite a challenge for an individual, if used smartly, having more than one card can also be a boon. People are often tempted to apply for many credit cards because different credit cards come with different features and exclusive benefits and so card holders tend to have different credit cards for different type of spending. Thus, the time for the readers to start using credit cards and you can have more than one. However, remember to be very careful in handling them, otherwise, you will end up in financial trouble!
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— CreditHealth Care (@Credithealth24) August 20, 2018