Reasons to Have More than One Credit Card
Monday, January 21st, 2008There are some people out there who only have one credit card. Although they could qualify for additional credit cards, they feel that one is enough. This type of credit card user normally keeps spending under control and pays off balances as soon as they are do. This is great, but keeping only one card could actually be doing them a disservice. If you are the kind of person who only has one credit card, you might want to think about the benefits of getting a few additional cards in your name.
The most important benefit of having additional credit cards is that you have more choices. You can choose the right card to use at any given time based on the interest rate, the available balance and the rewards that are offered on that card. For example, some credit cards offer rewards when you travel while others offer rewards for daily spending. Having a card of each kind maximizes the rewards that you’ll get back. And if you get the same rewards with either card, you can always select the one with a better interest rate to make paying back the debt easier.
Another benefit of having more than one credit card is that you have access to more credit. Sure, you probably don’t need hundreds of thousands of dollars of credit. But what if you find yourself in an emergency and do need to do some serious spending? Having only one card can limit the amount of money that you can access, especially if that card doesn’t have full cash advance opportunities. Having two or three cards will allow you to be more secure in the knowledge that there is money there if you do need it.
Another way that you get access to more money when you need it is by establishing good credit. Although it’s great that you’ve set up good credit with one lender, it’s important to create a credit history which shows that you can pay off balances to more than just one place. By using more than one card for purchases and then paying each card off regularly, you can establish good credit more easily and more quickly than if you’re trying to do it with just one card.
Finally, you might find that can make payments somewhere with one type of card but not with another. For example, it used to be common for American Express cardholders to be told that they couldn’t use that card at many locations. Even if you think that you have a common card, you might find that you don’t. For example, my gas company only takes Visa so if what I had was a MasterCard, I’d be in trouble. Having more than one card increases the flexibility of your spending and makes life easier for you.
