Whether or not you carry more than one credit card is a personal decision. While some people like the thought of doing so, others don’t see a point in cluttering their wallet (or purse) with more plastic.
Below, we’re going to examine some of the benefits of having multiple cards:
• You can have a separate credit card for emergencies, online shopping, or any other type of activity that you want to more easily track.
• You always have a backup. If one credit card is stolen or lost, you can always pull out another to ensure that your financial system remains on track.
• You can make buying decisions based on the benefits of each card. For example, if you know you’re going to carry a balance, you can opt for the card with the lowest rate. Or maybe you’re making a big purchase. In this case, choose the one with the best rewards program.
While those are some of the benefits, it’s now time to review a couple potential pitfalls:
• More cards means more opportunity to make a mistake, such as spending more than you can afford.
• It takes more time to manage multiple credit cards. From tracking statements to paying bills, you need to manage each one with success. If you don’t, it could harm you in the long run.
As you can see, there is no right or wrong answer as to whether you need more than one credit card. If you’re comfortable with one, stick with this approach. If adding another card could do you good, it’s an idea to consider.
What do you think about this? How many credit cards do you have? Share your thoughts in the comment section.