7 Reasons: Why You Need More Than One Credit Card

Credit Card plays an important role in millennials lifestyle. Whether you shop, dine or do online bill payment, it makes your purchases easy and convenient.

Nowadays, credit cards are tailor-made which is used for a specific needs and due to which some people own one credit card while others may have multiple credit cards. In fact, the credit advisory firm Credit Sudhaar says, on average, a credit card user in India has 2.2 credit cards.

However, the question is how many credit cards are idle for one person? Should you have more than one Credit Card?

Many discussions are ongoing that you can check online, but it totally depends on your expectation from credit cards.

In general, there is no set rule as to how many credit cards are ideal for a person. It is purely dependent on the millennials ability, considering his own spending behaviour, current income and financial position. Even if someone is not a very high spender or never exceed the limit on their credit card, they still need 2-3 credit cards. There could be several reasons for this. Let’s check out some of them. 

1. Maximum Transactional Rewards

Credit cards are tailor-made for specific needs, and banks & financial institutions design them according to a spending category such as travel, shopping, dining, etc. When you own multiple credit cards, you can make the most of the rewards that different cards offer for purchases around these categories.

2. Deals & Discount

Many merchants have tie-ups with certain banks, payment gateways, and credit cards. On several occasions, there could be great ongoing deals & discounts that you may miss out on if you hold just one card.

3. Balance transfer

In case, you are facing a cash crunch in any particular month then you can transfer the required balance from one to another credit card. Some credit cards don’t charge heavy fees on balance transfers in comparison to the interest rate associated with non-payment or the minimum payment.

4. Better Financial Management

You can space out the dates of the monthly cycle to maximize the interest-free period offered on a card. To do so, use your first credit card till the last day before the cycle and then switch to another card. This will help you in managing your financial position better as you extend your credit line.

5. Backup During Card failure

There might be a situation when your one credit card is not working due to any technical glitch, then your second card can act as a standby.

6. Improved Credit Score

Your credit utilization ratio and credit score are correlated. So, when you use more than 20% of all your card’s limit every month, it helps you in building a good credit profile. Though the percent of debt you carry on each credit card matters as well, that’s why having 2-3 credit cards can help you.

7. Minimize Revolved Credit Charges

If you have revolving credit on one of your credit cards, then stop using it, otherwise, the interest will be charged on the new purchases. Instead, you can use your other credit cards.


Owning more than one credit card can only add more values if you manage them correctly otherwise, it can lead to debt traps, defaults, and a poor credit score. Today, credit cards are tailor-made to cater to the specific needs of users, which encourages you to sign up for more than one credit card. So, If you are planning to own multiple credit cards then make sure it doesn’t go against you. Ensure the benefits of each card that offers. Your selection should be purely based on your lifestyle and spending patterns. Though, it is equally important to be aware of the credit limit, payment due dates and etc.

The TeamBTP staff byline is mostly used for collaborative articles and other posts covering technology news, features, leaks, informative lists, comparisons, how-tos, and more.
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