Why should I carry more than one credit card?

See, it is not compulsory to hold multiple credit cards. In fact, if you don’t wish; you don’t even have to own a single credit card. You’ve got a choice; at least in this aspect. However, if you are to apply for a loan or you live in a country where the concept of using credit cards is still new; you might need multiple credit cards.

Here’s why?

• Vendors you regularly visit might have tie-ups with different card provider. For instance, your local milk shop might not accept payment through VISA or Mastercard credit card, but the Indian RuPay card is accepted. There having a RuPay credit card might provide beneficial.
• Secondly, some credit cards work only in India and at limited places. If you are into frequent traveling, having multiple cards including Master and VISA card is beneficial since both are internationally accepted payment gateways.
• Lastly, if you are planning to take a loan in the near future you would need a good credit score. Now, credit score improves only if you have multiple credit accounts in your name. Even CIBIL suggests having multiple credit accounts one one’s name to get better scores. The cheapest way to do that is by having multiple credit cards.

Carrying more than one credit card can actually be useful if you manage them properly. First, different cards give different rewards. One card may give cashback on groceries, while another gives better rewards on travel or fuel. Second, it can help improve your credit score by increasing your total credit limit and lowering your credit utilization. It’s also helpful as a backup in case one card is not accepted or has an issue. But it’s important to manage them carefully and avoid overspending or missing payments.