A credit card has become one of the most popular financial tools of the modern era. Once you start making good use of it, the next question is whether you should get an additional credit card or not. Your lifestyle might have changed with time or some attractive benefits might have caught your eye. You may also get an additional credit card for building your CIBIL Score. Whatever is may be the reason, here we have listed all the possible reasons and benefits stating that why should should you consider owning an additional credit card. Have a look at some of its benefits below so that you can make an informed decision.
Here are the advantages of obtaining a further credit card:
• Rewards and benefits: Having multiple cards will let you make the most of the rewards or benefits offered by the credit card issuers. An additional credit card will allow you to make full use of the rewards and benefits you want to have.
• Financial security: In case of emergencies, multiple cards can prove to be really beneficial. Whether it’s a medical emergency or you need to pay your bills, an additional card can help reduce your financial burden in no time.
• Security: Another advantage of having an additional credit card is that it provides security. For example, you can get a credit card for online spends, this way you do not expose your other credit cards to online frauds.
Reasons to get a new credit card:
We have listed a few reasons suggesting why you must consider getting an additional card:
To explore more options
When you had applied for your first credit card, only a few options would have been available to you. But having a good credit history opens a path for multiple credit card options that serve your needs better.
To have a credit card of your own
You might be using add on card that is linked to your parents or spouse’s card. However, by using such a card, you’re not developing your own personal credit score or history. Hence, you should have a credit card of your own. This way you will develop your own credit score and history and this, in turn, would help you to apply for a loan in the future without any hassle.
To improve your credit score
If you have a bad credit score, you can start with a secured credit card. After getting a secured card, you can move onto a new unsecured credit card. Once you have improved your score, you have a lot of options to explore. With a bit of research, you can choose a credit card based on your needs and spending habits.
To earn extra rewards and benefits
If your first card is not a premium one, then you can apply for a premium card as they offer better reward points and benefits. Premium cards are generally offered to those who have a good credit history and a good income. Rewards can include air miles and reward points that can be exchanged for plane tickets or items respectively.
To get a lower interest rate
The credit card you currently own might be having a high rate of interest. So, in such situations, it is better to move onto a new credit card that charges a lower interest rate. You can conjointly transfer the balance from your previous mastercard to the new card and save on the entire interest payout.
To avoid paying an annual fee
If your credit card comes with a hefty annual fee and does not give you much rewards and benefits on using it, you should definitely opt for an additional card. Switch to a card that does not charge an annual fee or at the very least waives it off if you reach a spending milestone.
We have listed all the reasons and benefits of owning multiple cards. Now it is up to you to decide whether or not you should apply for a new credit card. If your old credit card does not provide you with maximum benefits, then go for a new one. If you aim to collect credit cards then we would strongly recommend that you reconsider your decision. Reckless use of credit cards can land you in huge financial trouble.