Can Multiple Credit Cards Affect Your Credit Score?

Having multiple credit cards is convenient. But can owning too many cards affect your credit score? Yes! Let’s find out how using multiple cards affects your credit score and how many cards are too many. Scroll down

Can You Have Multiple Credit Cards?

Yes, there is no harm in owning multiple credit cards, and it totally depends on how you use them. What matters is how you maintain the balance between a lower credit balance and payment of credit card bills on or before the due date.

Owning multiple credit cards does not negatively impact your credit score unless you have missed credit card bill payments or applied for new credit cards within a shorter period. When you apply for too many credit cards in a shorter period, too many hard inquiries are generated in a short span, which can lower your credit score temporarily.

Advantages of Having Multiple Credit Cards

Here are some advantages of having multiple credit cards:

1. Keeps Credit Utilisation Ratio Low

Having multiple credit cards helps you keep your credit utilisation ratio low. For instance, if you have only one credit card and use 90% of your credit limit, your credit utilisation score will naturally increase. However, if you have multiple credit cards and use just 30% of your credit limit, it will help you keep your credit utilisation low.

2. Helps in Building Credit Score

If you have multiple credit cards and you make all your credit payments on time, that will help you build a good credit score. This increases your chances of getting more credit opportunities in the future.

3. Cashback and Rewards

Using credit cards while purchasing helps you earn reward points and other benefits. So, when you have multiple credit cards, it unlocks access to perks provided by those cards.

Also Read - What is the Minimum CIBIL Score Required for a Credit Card?

Disadvantages of Having Multiple Credit Cards

Let us look at the disadvantages of using multiple credit cards:

1. Difficult to Manage

Managing multiple credit cards with different payment cycles can be challenging. Remembering all the payments and due dates can be a tough task. If you miss a payment, the EMI amount and the interest will surge.

2. Increases Debt Risk

Having multiple credit cards helps you increase your credit score, but it also increases your chances of getting into debt. Hence, it is essential to use your credit card wisely to prevent yourself from falling into a debt trap.

Impact of Multiple Credit Cards on Your CIBIL Score

Having multiple credit cards allows you to have a larger credit limit and enjoy the benefit of a longer interest-free credit period. If you use your credit card more responsibly, you can boost your credit score and get favourable terms when applying for any credit. On the other hand, if you are not able to manage your credit card wisely, it can negatively affect your credit score.

Also Read - How Can I Get a 900 CIBIL Score?

To Conclude

There are several benefits of using multiple credit cards, but only if you use them wisely. Make sure that having multiple credit cards helps you manage your expenses responsibly rather than working against you. Being aware of the benefits each of your credit cards offers, the credit limit, and the payment due date will make you a responsible borrower.

Frequently Asked Questions

1. Is it possible to have multiple credit cards from the same financial institution?

Yes, you can have multiple credit cards from the same financial institution.

2. How to apply for a credit card from Poonawalla Fincorp?

You can apply for Poonawalla Fincorp’s credit card in two ways:

• By visiting the Poonawalla Fincorp IndusInd Bank eLITE RuPay Credit Card webpage and clicking on ‘Apply Now’.
• By visiting the IndusInd Bank website.

3. What are the benefits of the Poonawalla Fincorp elite credit card?

With the Poonawalla Fincorp elite credit card, you can enjoy benefits, such as zero joining fees or annual fees, reward points, milestone benefits, movie offers and more.

Disclaimer

We take utmost care to provide information based on internal data and reliable sources. However, this article and associated web pages provide generic information for reference purposes only. Readers must make an informed decision by reviewing the products offered and the terms and conditions. Loan disbursal is at the sole discretion of Poonawalla Fincorp.
*Terms and Conditions apply