People frequently have many credit cards due to the rapidly expanding popularity of credit cards. In actuality, the rise in the proportion of people with several cards also reflects the expansion of the credit card industry. Many people apply for credit cards, but do you know how many are permitted in India? Information on the benefits and drawbacks of owning multiple credit cards should also be provided.
Advantages of having many credit cards
Being able to spend more. Your credit limit rises along with the amount of credit cards you have. As a result, you have some additional money to spend, which you might use to pay for luxury items and other expenses. If you have more than one card, you can transfer the balances from all of them to just one card, which you can then use as you see fit to make payments. Balance transfer facility is the term for this. With ICICI Prudential, Smartkid Boosting Your Credit Score with Smartlife: A low credit ratio is one of the most crucial variables that determine your credit score, therefore using many provides you a realistic chance to keep one on each of them.
The drawbacks of having several credit cards
Having several offers you access to huge credit limits, allowing you to spend irresponsibly and make unnecessary purchases. So you might find yourself in a debt trap. The score could decrease: Having many cards also means having multiple payment obligations. If you occasionally forget to pay your bills, your score could suffer. Therefore, you should be ready to assume extra financial responsibility if you intend to use more than one.
You are likely already aware of the different charges made to your credit card.
Penalties for using it, yearly fees, late payments, cash advances, and incentive redemptions, among others. The difficulty of paying their fees will therefore increase with the number of cards. There is no such restriction on it in India. Any person can keep however many they need. If consumers do maintain multiple, they should only do so after weighing the benefits and drawbacks.
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