How Many Credit Cards Can I Have in India?

People possessing several credit cards isn't unheard of given the credit card industry's rising popularity. I had a friend who owned at least 7 credit cards. In actuality, the increase in the share of consumers using several cards is inversely correlated with the expansion of the credit card industry. You gain advantages from having several credit cards, such as a low credit utilisation ratio, more rewards, greater spending power, etc. However, if you already have a credit card and are thinking about applying for another, there are a few things you should know, especially the answer to the question “how many credit cards can I have in India”. I am going to help you understand that ahead.

Advantages of Having Multiple Credit Cards

The primary advantages of owning multiple credit cards are as follows:

• A greater ability to spend: Your credit limit rises together with the number of your credit cards. As a result, you have some cash to burn, which you might use to pay for expensive products and other expenses.

• If you have over one card, you can use the balance transfer feature to move all of your outstanding balances to just one card, which you can then use to pay off the debt whenever it's most convenient for you. The credit card facility is what is used for this.

• Increasing your credit score: You have a good chance of maintaining a low credit utilisation ratio on any credit card you use if you use several of them. And one of the key elements that determine your credit score is a low credit ratio.

Disadvantages of Having Multiple Credit Cards

A few potential disadvantages of having multiple credit cards are listed below.

• A possible debt trap: Since using many credit cards gives you access to a bigger credit limit, you could have a tendency to use them carelessly and make impulse purchases. As a result, you risk falling into this hard debt trap and experiencing difficulty finding the right financial balance.

• Your credit score could decline: Having numerous cards also means having many payment obligations, so you can occasionally forget to pay your bills, which would lower your credit score. You must therefore be prepared to take on the additional financial burden once you decide to apply for many credit cards.

• You are likely already aware of the many charges and fees that your credit card incurs. Membership fees, annual fees, late payment fees, cash advance fees, reward redemption fees, etc. are a few of them. Therefore, the fees and charges are higher the more cards there are.

How many credit cards should I have?

Whenever it comes to credit cards, there is no such thing as an optimal number that can be suggested to everybody. Even if possessing a few cards can be a tremendous blessing, having too many of them can cause problems in more ways than one. You must exercise discretion to choose the right answer because this is a personal choice.

I hope now you have the answer to your question “how many credit cards can I have in India?”.