Merits and demerits of availing multiple credit cards

The credit consumption increased in India, primarily due to several credit card benefits available with these payment tools. Moreover, individuals are also opting for more than one credit card to maximize the benefits.
Following are some of the pros of availing multiple credit cards at a time.

While a single credit card comes with a specific reward scheme, it increases with multiple credit cards.
Individuals can use different credit cards for different purposes and make the most of them.

Using multiple credit cards, individuals can keep their credit utilisation ratio below 30% as they can distribute the expenditure across multiple cards. Eventually, it helps in improving the user’s credit score.

Multiple credit cards can prove to be great for financial backups. Especially during foreign travel, not all credit cards are accepted. In that case, they can use another card, if one gets rejected.

Similarly, if one credit card with a high credit limit is stolen or compromised, the corpus of financial loss will be minimal. Moreover, they can use another card until a replacement arrives.

However, selected credit cards like the Bajaj Finserv RBL Bank SuperCard combine all the benefits of this payment card into a single product that individuals can consider instead of availing multiple cards.

Nevertheless, some cons of availing multiple cards include –

Managing multiple credit cards gives rise to complications and confusion and increases the chances of delayed or missed payments.
Such delays can lead to severe debt traps if not regulated in time.
With multiple credit cards, the additional charges also increase, which accumulate to a hefty financial burden
These are some vital factors that individuals need to know before applying for multiple credit cards


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