Five great advantages of holding a second credit card
The offers for new credit cards are tempting. But should you opt for a new credit card if you have one already?
Yes, because holding an additional credit card has several benefits.
One: Option for emergency credit
If one of your credit cards is stolen or damaged and you need to make some purchases urgently, your second card will function as back-up. Hence you can keep your second credit card in a separate wallet or at home. While travelling, you can lock your second credit card in your hotel room’s safe deposit box.
Two: Lower fraud risks
In this era of sophisticated technologies and phishing scams, card details can be skimmed and accounts can be hacked. If you hold a separate card exclusively for online transactions, and you notice suspicious activity on that card, you can immediately block your card. Your second credit card remains uncompromised and safe to use.
Three: Variety of benefits
Your bank offers a range of credit cards, some of which provides benefits on specific uses, such as discounts on dining, zero-fuel surcharge, or cash back on air tickets. Additionally, card-related loyalty programmes offer several complimentary products and services when you redeem your points. With multiple credit cards, you have access to a wider spread of benefits and rewards.
Four: Staggered payments
Each credit card has its own billing cycle and due date. If you use more than one card, you don’t need to pay a large amount at one time, instead you can stagger your payments as per each card’s billing cycle. This puts less pressure on your financials.
Five: Boost to credit score
Credit rating agencies look at how much of your card’s credit limit you use while evaluating your credit score. If you are maxing out on your card, you are likely to lower your score. With two cards, you can spread your spends and stay within reasonable limits on each. It is also easier to manage repayments with two cards since you don’t have to pay them both at the same time. If you use your two cards prudently, it will boost your credit score, and make future loans cheaper and easier to get.
FAQs
Multiple credit cards help you afford your everyday purchases but also your emergency expenses. You can rely on credit when you run into an unexpected expense, but with two cards you can prevent that large expense from hurting your credit score.
Will getting a second credit card help my credit? ›
Although adding extra credit cards to your profile won't directly help your score, it could provide an indirect lift by reducing your credit utilization ratio. Utilization is simply the amount you owe on your cards divided by your available credit.
When should you get a second credit card? ›
It all depends on your unique needs and circ*mstances. You might consider a second credit card if your credit score has recently improved, you want to maximize rewards potential or you have high-interest debt you want to transfer to another issuer.
What are 2 pros and 2 cons of having a credit card? ›
With careful use, credit cards can help you build your credit and accumulate valuable benefits and rewards. Plus, you'll enjoy protection against unauthorized charges. However, interest rates are high, and if you don't pay on time and in full you can accumulate debt and even hurt your credit score.
Will 2 credit cards build credit faster than 1? ›
Yes, assuming you use your cards responsibly. If you do, then having additional cards will generate consistent spending information for the credit bureaus each month, increasing your total credit limit and keeping your credit utilization rate low.
Does getting a 2nd credit card hurt credit score? ›
Credit scores factor in the average length of time you've had credit — not the age of your oldest account. Therefore, every new credit card you open decreases the average length of your credit history. While new card accounts often lower your credit score about five points, it typically rebounds in a few months.
How to get 800 credit score? ›
Making on-time payments to creditors, keeping your credit utilization low, having a long credit history, maintaining a good mix of credit types, and occasionally applying for new credit lines are the factors that can get you into the 800 credit score club.
What is the credit limit for credit one up to $2000? ›
Credit One Platinum's maximum credit limit is around $2,000, according to customer reviews. Some people report being approved for this amount right away, while others have worked up to it over years of responsible card use. The minimum credit limit for Credit One Platinum is just $300.
Can I have 2 Capital One credit cards? ›
How many Capital One cards can I have? Cardholders can have up to five open personal credit card accounts, but this may vary based on the specific cards held and the cardholder's account standing.
How soon is too soon to get a second credit card? ›
If it's been a while since your last approval
A good rule of thumb is to wait at least six months between applications.
Yes, you can have two Capital One Platinum cards. Applicants can have as many Capital One credit cards as their credit situation allows. This is the case both for different Capital One cards and two or more of the same credit card, as well.
What are the three C's of credit scores? ›
Character, capital (or collateral), and capacity make up the three C's of credit. Credit history, sufficient finances for repayment, and collateral are all factors in establishing credit. A person's character is based on their ability to pay their bills on time, which includes their past payments.
What is a good credit score? ›
Although ranges vary depending on the credit scoring model, generally credit scores from 580 to 669 are considered fair; 670 to 739 are considered good; 740 to 799 are considered very good; and 800 and up are considered excellent.
Is it better to close a credit card or leave it open with a zero balance? ›
If you pay off all your credit card accounts (not just the one you're canceling) to $0 before canceling your card, you can avoid a decrease in your credit score. Typically, leaving your credit card accounts open is the best option, even if you're not using them.
Does canceling a credit card hurt your credit? ›
Closing a credit card could lower your credit score. That's because it could lead to a higher credit utilization ratio, reduce the average age of your accounts and hurt your credit mix. Before closing a credit card, it's wise to consider these factors and the potential impact on your credit score.
How many credit cards should I have at 23? ›
The average adult has around 5 credit cards, including store credit cards, but there's no golden rule for how many credit cards you should have - or how many credit cards is too many.
How many credit cards should I have to get an 850? ›
You should aim for 9+ years to score "Excellent." Total accounts: You need 21+ accounts to score "Excellent." If you have 20 cards and low utilization, you're seen as more responsible to the credit agencies.
