These days, it’s not uncommon for people to have multiple credit cards. A study by Experian found 46% of the U.S. population has two credit cards or moreFootnote1. But is it good to have multiple credit cards? Here are some advantages to having more than one card, as well as important things to keep in mind before applying for multiple cards.
Having multiple credit cards has its advantages, but you want to make sure you get those cards for the right reasons and don’t fall into bad habits.
Simply having multiple credit cards won’t necessarily harm your credit score. Your credit report will actually benefit from having established credit cards that are being actively used at least every few months. To help protect your credit score, make sure you’re paying on-time and avoid using more than 50% of your available credit.
To help stay on schedule and keep track of multiple due dates, you can set up automatic payment reminders. Some credit card issuers allow you to request an email or text message with your balance, recent transactions and a friendly reminder of your due date. Take advantage of these types of services to stay on top of your payments.
Sometimes people consider applying for a new credit card as a solution to other financial problems, but that often leads to even more unmanageable debt. However, if you can pay off your balance every month, you may appreciate the benefits of having multiple credit cards.
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