Advantages And Disadvantages Of Having Multiple Credit Cards

Nowadays when people are offered a wide assortment of credit cards, it can be really difficult to decide what plastic will meet your needs and expectations. It goes without saying that people are searching for the best credit card deals. However, can you say what type of credit cards is the best? The fact is that for some people the best plastics are instant credit cards, for others – plastics with best credit card rates. So, everyone decides for himself/herself what type of credit cards will suit his/her lifestyle in the best way. Very often, people have several credit cards that can be useful in certain situations.

Many credit card users are afraid of having multiple plastics. Some people are sure that having too many cards can negatively affect their credit history. For others, it is rather difficult to manage many plastics, to track all the bills and be on time with their credit card payments.

As a rule, it is recommended to have from one to three plastics, depending on your financial habits. And there are cases when customers benefit from having multiple credit cards. According to the research 51% of American credit card users have two or more plastics.

The fact is that holding multiple credit cards can be rather profitable. There are several reasons for holding multiple plastics. And one of them is safety. Having only one credit card you can face certain problems. We can’t deny the fact that credit cards can be stolen or lost. That’s why keeping one emergency plastic in a safe place will be a wise thing. In this situation you can rest and be sure that you have got a lifesaver in case of emergency.

One more popular reason for having multiple credit cards is different credit card rewards. Since today credit card companies offer a wide range of plastics with various rewards programs, it won’t be difficult to enjoy different perks that rewards credit cards can give you.

However, these rewards credit cards have some disadvantages. Most rewards plastics usually come with higher APR, so you can accrue a credit card debt instead of rewards. That is why, it’s better to pay off your balance in full each month to avoid debt problems.

Some people are sure that carrying too many plastics can negatively affect their credit score. It can seem impossible, but multiple credit cards can improve your credit score. The fact is that when your creditors estimate your creditworthiness, they pay special attention to your debt-credit ratio. If you have many plastics, you have lots of available credit and so, you don’t have problems with your credit score.

However, not everyone has excellent money management skills. And carrying multiple credit cards can be a really difficult task for those people who are going to establish credit and who have little experience.

Of course, it’s up to you to decide how many credit cards you will carry. However, be very careful. Otherwise you can face serious financial troubles.