The Pros and Cons of Having Multiple Credit Cards in Your Wallet

Carrying many credit cards in your wallet has grown widespread in today’s age of financial flexibility. Convenience, incentives, and the chance to establish a strong credit history are the factors driving this trend. The use of many credit cards does, however, come with pros and cons, each with a different impact on your financial situation. In this article, let’s discover the benefits and drawbacks of having several credit cards, illuminating the variables to consider when determining how many are the ideal number. Whether you keep one credit card in your wallet or multiple, check CIBIL score and stay updated with your financial impression.

Pros of Having Multiple Credit Cards

There are benefits and setbacks to having several credit cards. Having many credit cards may be advantageous if used wisely, but maintaining them can be quite a headache.

Keeps the Credit Utilisation Ratio Low

If you just have one card and spend 90% of the available credit, your credit utilisation ratio will inevitably increase. However, having many cards and just using half of each one’s credit limit can help you have a decent utilisation ratio, which is ideal.

Helps Build the Credit Score

Those who use many credit cards and complete all their payments on time will significantly increase their credit score. The person’s creditworthiness will rise, increasing their access to credit options.

Increases Credit Limit

The cardholder can access a bigger credit limit with several credit cards. However, this needs to be applied sensibly. Check CIBIL score to negotiate properly and get better terms on loans.

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More Rewards and Offers

If individuals have multiple credit cards, they can quickly get access to various benefits and offers. It will facilitate getting some extra discounts. Lenders will provide you with low interest if the CIBIL score is high, so always check CIBIL score on the CIBIL score app or website.

Backup Payment Option

A backup credit card can be handy in case of any emergency that arises. You can pay the bill with the help of a different card if one of the cards declines or causes any issue in payment.

Cons of Having Multiple Credit Cards

You may have to face the following cons with multiple credit cards.

Annual Fees

There are yearly fees for certain credit cards. The annual cost of these fees ranges from a few rupees to hundreds. It’s crucial to pick credit cards with advantages that outweigh the yearly costs. There are CIBIL score app services or websites which will help you in getting information on the annual fees that the card is charging.

High-Interest Charges

If you do not pay the entire credit card balance every month, interest will be charged on the outstanding amount due. It is critical to avoid carrying a balance since the interest rates on credit card debts can be high.

Late Payment Fees

The cardholders have to pay late payment fees if they do not pay the money on time. Set up automated prices to ensure that you always remember to make a payment.

Difficult to Manage

Multiple credit cards necessitate reading through numerous terms and conditions, keeping track of numerous billing cycles, and paying innumerable invoices. While having many credit cards may appear advantageous at first, managing them may be challenging. Therefore, it is crucial to keep track of each card you have independently to avoid financial life issues.

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Increased Debt Risk

A higher spending cap can be an advantage of having more credit cards. This habit might be valuable when an emergency is required, but it may be inconvenient for repaying the due debt. One should utilise each credit card to purchase what is needed. Having many credit cards shouldn’t justify spending more money than you can repay. Check CIBIL score regularly to get a better understanding of your credit cards.


Using numerous credit cards is not a decision that should be taken lightly. While it has several advantages, like increased incentives and the opportunities to improve credit scores and financial freedom, it also has concerns, including the possibility of overspending, administrative hassles, and debt building. Consider these advantages and disadvantages carefully before embracing the world of several credit cards. You should also evaluate your ability to manage your money and maintain discipline. Always use caution and recognise that each swipe influences your financial future, so it is necessary to check CIBIL score.

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