Multiple Credit Cards – The advantages and disadvantages.

Credit cards have become an everday convenience for most of us. Should we have only one credit card or multiple cards. We have listed some of the advantages and disadvantages for having one or more credit cards.

Among the many advantages, probably the most important is having a backup card when something goes wrong. Whether your card has been lost or stolen, or your account has been suspended, it is a great convenience to have a second credit card to fallback on.

Another big advantage of having more than one credit card is for online transactions. Whilst online shopping is now commonplace, it still has some risk of fraudulant activity. Having one card dedicated to online purchases can minimise the risk of online identity theft.

Separating expenses easily is another benefit of having multiple cards. You may have a personal credit card and a separate credit card for business expenses.

The main disadvantage of having more than one credit card is that you have multiple bills and payments to make each month. Many people also find that more credit, means more temptation to spend.

Another disadvantage is that if you need a pin number attached to your credit cards, you have more to remember (or forget).

Finally, creditors see all available credit as a higher risk of going into debt. This can affect your ability to borrow money.

As you can see, there are good reasons for having more than one credit card. The average consumer has two or more credit cards. But there is no one answer to how many is right for you. This is an individual choice and should be based on your requirements.