There are some people that have several credit cards, some that have just one and others that have none at all. If you are considering whether you should be getting another credit card it is a good idea to think about the pros and cons of doing so and then you can make the decision based on this. Below are a few ideas to start you off.
Advantages of Having Several Credit Cards
- It can be really handy have several cards as it means that you will have access to more money. This means that you will be able to buy more things before the cards get maxed out. So, if you need to buy lots of things or expensive things, then having several cards will allow you to do that.
- If a shop does not take one of your cards, then you will have another one that you can try instead. This can be handy if perhaps your cards are different – perhaps one Visa and one American Express. Not all shops take American Express so you can use your Visa when you are in those shops.
- If you lose one of your cards, then you will have the other one that you can use instead of it.
Disadvantages of Having Several Credit Cards
- If you have access to lots of money, then you may spend more than you can afford to repay because it is more difficult to keep track of your spending.
- You might find that you will end up spending far more money than normal because you have the opportunity to do this with the cards. Some people see their credit limit as their money that they can spend. So, they use it to treat themselves to all sorts of things. Then they cannot afford to repay it when the statement comes and end up having to pay interest on it. This will mean that they will have to pay a lot of money for the privilege of being able to spend the money and that can be expensive for them.
- Having double the cards means double the chance of fraud on your credit card.
These are just a few of the advantages and disadvantages. It is important to think about how you will keep track of your spending with two credit cards because you will need to make sure that you keep your spending under control. It is always best to repay the whole of your credit card before you get any interest added to the account and in order to be able to do this you will need to make sure that you do not spend more than you can afford. Therefore, you will need to keep a note by writing down what you are spending or by checking the balance online, which could be more of a hassle if you are doing it for two credit cards, rather than one. It could be easier to see whether you can increase the credit limit on the one card that you have than take out a second one. It is also worth thinking about whether you will find that you do overspend once you have the temptation of this extra money available for you to use. This could end up being really expensive for you and you may then struggle to get back in control of your money as a result. It can be fun spending the money, but the fun soon fades when you have to pay the interest on it and find the money to repay it all.