Should you have more than one credit card?

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There is no limit in the law that can stipulate how many credit cards an individual should apply. Many analysts suggest that you should keep at least two credit cards. This again would depend on your needs and the tailor made options that credit cards provide.

Should you have more than one credit card?
For example, if one card offers more points on travel, you might also want one credit card that offers good number of points on groceries. You may not be able to get all benefits from just one credit card. You might want to take a credit card that has no or low annual maintenance charges.

Most important is to service these credit cards

If you have taken two credit cards and are not able to service them and make payment on time, chances are bright that your Cibil score would take a hit.

What is also important to note that if you have exhausted your credit limit entirely on one of your credit cards it could damage your credit score. The ideal way is to use the credit cards in such a way that you keep some balance on both cards. So a wise way would be to use both the cards together rather than use one and finish the credit limit there.
Also remember that each time you pay the full amount on your credit card it goes to improve your creditworthiness.

Should you close other credit cards?

If you have more than two credit cards it would not be wise to surrender the older cards. This would be especially true if you have regularly paid amounts on those credit cards and these have help to build a good credit score with Cibil.


It's good to keep two credit cards and ensure that you use them in a prudent way without exhausting limit on one and keeping full limits on the other. Use them simultaneously. Make sure you pay the amounts outstanding. As mentioned earlier, do not surrender cards that are old and have help you to build credibility over a period of time.

Read more about: credit cards
Story first published: Saturday, December 20, 2014, 7:21 [IST]
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