Pros and Cons to Having Several Credit Cards

A1 CreditBlogPros and Cons to Having Several Credit Cards

Pros and Cons to Having Several Credit Cards

Pros and Cons to Having Several Credit Cards

Multiple Credit Cards Pros and Cons

Many people tend to have more than one active credit card, but at what point is it too many credit cards? Or, on the other hand, how do you know if you have enough credit cards? The number of active credit cards that one has can totally depend on their own financial situation. There are several pros and cons to having more than one credit card, which we have rounded up below. Check out some of the benefits and risks of having several credit cards:

Pros:

  • Increases the amount of credit you have. If you have more than one credit card that is active, you will ultimately have a larger amount of credit to spend. As your overall credit score increases and as long as you are paying your bills on time, you can expect that your overall credit line for each card will increase, allowing you to charge more.
  • Allows you to get access to more rewards. Many credit cards have unbelievable rewards associated with them – the more you spend, the more rewards you get access to! By having multiple cards, you are gaining more rewards, whether that is cash back, travel miles, or rewards to specific stores that you love shopping at.

Cons

  • You run the risk of overspending. If you are the type to rack up your credit card balances, you may want to steer clear of having multiple cards. With multiple lines of credit, and the more available that you have to charge, you do run the risk of overspending, which can lead you to drowning in interest and debt.
  • You may have multiple credit card fees, which could add up. Some credit cards that have great rewards and other benefits require annual fees. If you have multiple credit cards that offer these rewards and benefits, you will have a significant amount of annual fees per year, which can become an unnecessary expense.
  • It can be hard to keep track of balances and when payments are due. The more credit cards you have, the more you have to keep track of. We are all living busy lifestyles, so keeping track of your balances, how much you owe per month, and when the bill is due to pay for each card may become overwhelming.