Credit Card: How many credit cards can you keep at a time? Criteria and other important information

In today’s fast-paced world, making payments has become easier, thanks to the advent of credit cards and digital payments. While digital banking has made transactions faster, credit cards have helped increase a person’s spending power and proved to be useful in times of sudden financial needs.

Let’s take a look at if it is a good decision to have multiple credit cards and the advantages and disadvantages of the same.

How many credit cards can a person have at once?

In India, a person can apply for as many credit cards as they want at the same time. There is no particular limitation on the number. Multiple cards may help to improve the cardholder’s credit score and increase their spending power. Every credit card application is reviewed and considered separately to ensure it is being used properly and to show that the user is capable of paying off the bills at the end of every billing cycle.

It is important to note that managing a number of credit cards could be challenging.

Eligibility for multiple credit cards

When it comes to getting credit card applications approved, the applicant needs to have a good track record. A person can have multiple cards, depending on their eligibility.

Here are a few factors that are considered for having more than one credit card:

1. Most of the credit card issuers prefer that the applicant should have a minimum income of Rs 4-5 lakh per annum. The individual should always check this condition with their banks as the requirements may differ.

2. The applicant must be either salaried or self-employed. Having a stable job significantly increases the chance of getting credit cards.

3. A good credit score is a must as it helps get the applications approved as fast as possible. With a bad score, your application can get rejected. In case the applicant has existing debts or dues, the card issuer will look into your credit utilisation ratio to check if your dues exceed the granted limit.

Advantages of having multiple credit cards

1. Increases spending capacity: It increases the person’s spending capacity and they can use the cards as per requirements. Card holders must keep a check on their spending or else one can end up in debt trap.

2. Low credit utilisation ratio: If the bills are paid on time, it will also improve the cardholder’s credit score. With the benefit of multiple cards, you can distribute expenses across them to also keep the credit utilisation ratio below 30 per cent on each card.

3. Possibility of cashbacks and rewards: Having more than one card also gives multiple rewards, cashback, deals and discounts.

Disadvantages of having multiple credit cards

1. More bills: Having multiple credit cards also means receiving more bills at the end of each month. If unable to pay them on time, the financial burden may increase.

2. Hidden charges: When buying more than one credit card, people should also consider certain charges like the joining fee, annual fee, transaction charges, and more.

3. Credit score can be decreased: When a person applies for multiple credit cards within a gap of shorter time periods, their credit score is also likely to be affected.