How Many Credit Cards Should You Have?

Credit cards have revolutionized the way people spend and manage their money. With a wide range of rewards and benefits, it’s no surprise that many people are turning to credit cards as their preferred mode of payment. But did you know that having multiple credit cards can unlock a whole new world of benefits and advantages?

Here are some top reasons why having multiple credit cards can benefit you:

Benefits of Having Multiple Credit Cards

1. Helps you diversify rewards and benefits

A significant benefit of having multiple credit cards is that you can enjoy different types of rewards and benefits from each card, giving you more variety and options to choose from. Different credit cards offer different rewards programs, such as cashback, travel rewards, and redeemable points for merchandise or services. For instance, if you travel frequently, you may want a credit card that offers rewards and perks for travel expenses. On the other hand, if you spend more on groceries and gas, you may want a card that offers cashback or rewards for those categories. By using different credit cards for different types of purchases, you can earn more rewards points or cashback on each purchase, which can help you save money in the long run.

2. Allows you card to card balance transfer when needed

Another benefit of having multiple credit cards is the provision to transfer high-interest balances to a card with a lower interest rate. This can be useful if you have a high outstanding balance on your credit card and are struggling to pay it off. By transferring the balance to a credit card with a lower interest rate, you can save on interest and pay off your debt more quickly. Some credit card issuers even offer balance transfer promotions with a 0% interest rate for a limited time, which can be an excellent opportunity to save money on interest payments.

However, there may be balance transfer fees associated with this process. These fees range from 3% to 5% of the transferred balance. Despite the fees, a balance transfer can still be a cost-effective way to pay off your debt, as compared to carrying outstanding bills over a period of time.

3. Enables you to enjoy travel benefits

Many credit card providers offer rewards & other benefits for travel expenses. These benefits can help you save money on travel expenses and make your travel more comfortable. By choosing a credit card that offers benefits tailored to your travel habits, you can maximize your rewards and make the most of your travel experience.

For example, you may get a card that offers airline miles and another card that offers cashback on hotel bookings. If you want to get access to multiple benefits using a single card, you can use OneCard, which offers 5x rewards on spends on your top 2 categories.

4. Helps you build your credit score

Having multiple credit cards will give you a higher overall credit limit. By using these cards responsibly, you can build your credit score. Since you can divide the spending on multiple cards, you will also be able to keep your credit utilization (amount of available credit you’re using) in check, which is an important factor in determining your credit score.

However, merely having multiple cards cannot improve your credit score. In fact, having too many credit cards can also harm your credit score as it might make you overspend. Also, applying for multiple credit cards in a short period of time can harm your credit score as it will result in multiple hard inquiries on your credit report.

Also Read: CIBIL Score for Credit Card - Minimum CIBIL Score for Credit Card

5. Gives access to more credit

By applying for another credit card, you can increase your overall credit card limit, which can be especially helpful if you have a big purchase coming up or if you’re juggling multiple expenses. A higher credit limit can also give you greater financial flexibility in times of emergencies. Whether meeting unexpected medical expenses or doing urgent home repairs, having access to more credit can help you cover these costs without having to dip into your savings or take a personal loan.

ALSO READ : How to make most of your credit card

In conclusion, applying for another credit card can benefit you if you want to access more credit, diversify your rewards and benefits, transfer your balance, or build your credit score. If you are looking for a credit card that offers convenience, transparency, and savings, then OneCard can be an excellent choice for you. Want to know how? Check out OneCard, India’s best metal credit card that provides the following benefits:

Benefits of having OneCard

It’s Metal: A credit card that is exclusive and exquisitely crafted with metal. It’s a classy black metal card, so why settle for regular plastic cards?

Seamless Onboarding: The onboarding process is very easy & smooth. The process is fully digital, and you can activate your OneCard in less than 3 minutes.

5x Rewards: With OneCard, you can earn 5x rewards on your top 2 category spends. You can also get fraction points & they don’t even expire. Collect points and unlock the rewards you want with those points.

MyFamily feature: Share your credit limit with your family members, and they will also get their separate credit cards with separate offers. Keep track and control of their spending on our app and get rewards for their spending as well.

Powerful mobile app: Adjust your transaction limit, enable/disable domestic and international use, and enable/disable online and offline use with advanced controls. Additionally, you can also make contactless payments and much more.

OneCard EMI: Now you can shop in full, but pay in parts using One Credit Card EMI. You can convert your payments to EMI on the OneCard app and earn points & rewards on EMI repayments.

Swipe to pay: Now, pay at any shop or online with just a swipe on the app. It’s secure and hassle-free, so there is no need for OTP every time you buy.

Spend analysis: You can check and manage your spending patterns by categories, merchants, and time period. You can also set a budget limit, exceeding which the app will inform you through notifications and help you manage your finances easily.