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Benefits of Having 2 Credit Cards: The Advantage of Multiple Cards

RBL Bank Jun 16, 2025

Credit cards offer instant access to funds, helping you manage both expected and unexpected expenses, which makes them a modern financial necessity. It's increasingly common for cardholders to carry more than one credit card.

While there's a common misconception that multiple credit cards can lead to poor financial habits or even a debt trap, the truth is different. When managed responsibly, having more than one credit card can offer several advantages.

Understanding both the benefits and potential risks of using multiple credit cards is key to making informed financial decisions.

Comes in handy when you need substantial funds

Every card comes with a certain limit beyond which you can’t borrow. When you have multiple credit cards, you get a large credit limit that comes in handy when you need a substantial amount of funds, particularly during the festive and wedding season.

With multiple cards, you don’t have to worry about the paucity of funds and dip into your savings. Multiple cards are also useful while addressing an emergency.

Make the Most of the Interest-Free Period

Having multiple credit cards can be beneficial if you know how to make the most of the interest-free period. Most credit cards offer a grace period, typically ranging from 20 to 50 days, during which you can pay your balance in full without incurring interest charges. By using multiple credit cards strategically, you can extend this interest-free period and save money on interest payments.

For example, if you have two credit cards with different payment due dates, you can use one card for purchases and pay the balance in full before the due date, while using the other card for subsequent purchases. This way, you can enjoy an extended interest-free period and avoid interest charges.

However, it’s essential to keep track of your payment due dates and balances to avoid overspending and accumulating debt. Make sure to pay your balances in full each month to maximise the benefits of the interest-free period.

Improves Credit Utilisation Ratio and Credit Score

Having multiple credit cards can improve your credit utilisation ratio and credit score if managed responsibly. Credit utilisation ratio is the percentage of your available credit limit that you’re using, and it’s a significant factor in determining your credit score.

By having multiple credit cards, you can spread your purchases across different cards, keeping your credit utilisation ratio low. This can help improve your credit score over time. Additionally, making timely payments on multiple credit cards can demonstrate your creditworthiness and responsibility, further boosting your credit score.

However, it’s crucial to keep your credit utilisation ratio below 30 % for each card and overall. High credit utilisation can negatively impact your credit score, so make sure to monitor your balances and adjust your spending habits accordingly.

Proves beneficial in case a card isn't detected

There can be occasions when the point-of-sale (POS) terminal fails to read the magnetic stripe of your card. In such a situation, having multiple cards can prove to be beneficial as you can use your second card at the terminal and carry out the required transaction. However, relying solely on one credit card can impose limitations on larger purchases if the credit limit is reached.

Thus, having multiple credit cards offers a range of benefits. To make the most of your cards, ensure you use them judiciously and pay back the outstanding amount in full within the interest-free period.

Click here to learn more about the RBL Bank Add-on Credit Card program.

Types of Credit Cards to Consider

When considering multiple credit cards, it’s essential to choose cards that align with your financial goals and spending habits. Here are some types of credit cards to consider:

  • Rewards credit cards: These cards offer rewards points, cashback, or travel miles for specific purchases or categories.
  • Cashback credit cards: These cards offer a percentage of your purchase amount back as a reward.
  • Travel credit cards: These cards offer travel-related perks, such as airport lounge access, travel insurance, or points redeemable for flights and hotels.
  • Secured credit cards: These cards require a security deposit and are ideal for building credit or rebuilding credit.
  • Balance transfer credit cards: These cards offer low or 0 % interest rates for balance transfers, helping you pay off debt.

When choosing multiple credit cards, consider your spending habits, financial goals, and credit score. Make sure to read the terms and conditions, including interest rates, fees, and rewards structures, to ensure you’re getting the best cards for your needs.

Managing Multiple Credit Cards

Managing multiple credit cards requires discipline and organisation. Here are some tips to help you manage your credit cards effectively:

  • Keep track of your payment due dates and balances.
  • Set up automatic payments to ensure timely payments.
  • Monitor your credit utilisation ratio and adjust your spending habits accordingly.
  • Use a credit card tracker or spreadsheet to keep track of your cards, balances, and rewards.
  • Avoid overspending and accumulating debt.
  • Consider consolidating your credit cards if you have too many or if you’re struggling to manage them.

By following these tips, you can effectively manage your multiple credit cards and make the most of their benefits.

Application Frequency

When applying for multiple credit cards, it’s essential to consider the application frequency. Applying for too many credit cards in a short period can negatively impact your credit score, as it may indicate to lenders that you’re taking on too much debt.

As a rule, it’s recommended to apply for no more than one or two credit cards every 6 to 12 months. This allows you to space out your applications and avoid negatively impacting your credit score.

Additionally, consider the following:

  • Only apply for credit cards that you need and can manage responsibly.
  • Make sure you meet the credit card issuer’s eligibility criteria.
  • Avoid applying for multiple credit cards from the same issuer in a short period.
  • Consider the credit card’s terms and conditions, including interest rates, fees, and rewards structures, before applying.
Disclaimer:
Articles published on the website are merely indicative and suggestive in nature and do not amount to solicitation. The contents do not guarantee the desired returns and/or results. Reader is advised to exercise discretion and consult independent advisors for achieving desired result.

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