We all know about the benefits of holding a credit card. But is it sensible to have more than one credit card? Yes, it is useful and convenient when you have more than one credit card. But you need to learn to manage them and keep track of their usage to avoid any kind of problems.
Here are some reasons to apply for a second credit card:
Option for Use in Emergencies:
Credit cards are highly useful for making all kinds of purchases whether for shopping or booking tickets. But what happens if your credit card gets stolen or damaged and you cannot use it? How to manage your expenses or some emergency purchases that you must do? This is where the need for a second credit card is felt.
Having two or more best credit cards ensures that you are not left in a lurch if you are not in a position to use one of them.
Use Different Cards for Different Purposes:
Credit cards come with a lot of benefits especially in the form of special offers or discounts on purchases from specific outlets. Having more than one credit card allows you to use different cards for different purposes.
Say a card offering air miles as reward points or access to the airport and railway lounges is incredibly useful for people who travel a lot. Similarly, a card with one for one free offer on movie ticket bookings is very useful for you if you are a movie buff.
Having two different credit cards with different billing cycles helps you to manage your finances well. You can plan your expenses or purchases in such a way that you can use the interest-free short-term credit available on the two cards to your advantage. This helps you to manage your finances well.
Save on annual fees:
If you are holding a card and paying annual fees for using it, you should look for additional credit cards with no annual fee as the second option. It is more beneficial when you get a lifetime free credit card. This will help you enhance your credit limit while reducing the overall cost of using it.
Boost Your Credit Score:
Your credit score depends on your credit utilization ratio which is calculated based on how much credit you are using. Holding two or more cards allows you to spread your spending while remaining within the reasonable limit on each card.
You can easily manage the payment of the due amount on both cards as the due dates are different. Proper management of the dues on both cards can improve your credit score thereby boosting the chances of your getting future credit cards or loans at attractive interest rates.
Do not apply for a second credit card by getting lured by the attractive offers. Instead, read the fine print and check the terms and conditions associated with using the card and the benefits available. Once you are satisfied that the card being offered will help you manage your finances better, apply for it.