Reasons for having at least 2 Credit Cards at all points of time

If the thought of having more than one credit card has spawned inside your head, don’t worry, you are not the only one. A lot of people get around with at least two credit cards and there are good reasons behind the same. Unlike the most common theme that having a credit card is not good for your finances, here are some of the reasons why holding at least 2 credit cards at all points of time can be beneficial.

• Back Up

Picture this, you are out on a holiday either within the country or abroad and your card just won’t work due to technical glitches, or if the worst happens and you lose your card. It can be a tough situation to be in an unknown place. It might take some time for your credit card company to fix the issue or before you are able to proceed with any payments. A second credit card in such a situation can be an unsung hero; allowing you to get over the difficult situation in unknown circumstances.

• Tracking of funds

Quite a few of us find it difficult to regulate or even keep a tab on our expenses. We just don’t remember where we used the card and the billing cycle does its best to surprise us. Having separate cards for separate needs can be beneficial. Let’s assume you are someone who travels and lot and shops equally online. You can keep one card only for your travel expenses and other only for online purchases.

• Rewards Program

Depending on your needs and usage you can get the best of two or more worlds. Credit card companies have cards specific to certain types of usage. Thus, getting the ones that are most relevant to you adds a lot of value. For an instance, if you are a frequent flyer and like to dine out a lot, getting two cards to cater each need and better rewards program will be apt. This way, you can enjoy your flights and meals without compromising on the rewards given by different card types.

• Credit Score

Individuals having low credit scores can benefit from having at least two credit cards. Regular purchases and on-time payment would enable you to acquire better credit score. When the credit regulators look at your account and see multiple cards being handled properly, it will surely boost up your credit score. But it is critical to pay all the dues on time otherwise it will impact your credit score negatively.

• Emergency

In case of an emergency getting access to liquid funds is one of the most difficult tasks. If you have a credit card, for sure you can swipe the same to get out of the tight situation. But a credit card has its own limit. A second credit card in such a situation will enhance your spending limits so that you can tackle the emergency without any fuss.

• Payment Cycle

Having more than one credit card gives you the ability to stagger your bill payment. Having more than one credit card will have their own billing cycle and you can plan your expenses accordingly. It also ensures you are not hit by a big bill all at once, but that it is split over two different due dates.

More than one credit card will also help you with offers and promotions, where you have the option to pick and choose only the best offers. Irrespective of the number of credit cards, it is extremely important to pay the entire amount or due amount at regular intervals. To ensure you do not end up paying any fines or interest amount on the same.