Credit cards have made life easier for many! Owning a credit card is very common these days and has almost become a fashion. It not only allows you to spend money in advance, but also provides a month's cushion for the repayment. However, in case a user fails to repay the due payment at a given time, the lender or bank charges an interest or a fixed fee against it. There is a chance that you may even own more than one card. But, ever wondered if it is a good idea to hold multiple credit cards?

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Pnakaj Mathpal, MD, Optima Money Manager told Zee Business Online that it is not a smart option to hold multiple cards for a habitual spender. "If a person is not using a credit card for a very long, he/she should surrender it to the lender. Also having more cards is not a good option, if you are habitual spender," he said.

A credit card should be closed, if its not in use. Having more credit cards can provoke a user to spend more on unnecessary items, adding financial burden at the end of the month.

The credit score is a three-digit score that tells about the creditworthiness of the debtor. It determines what lenders consider before providing a loan or credit card to someone. The credit score depends on the factors like amount of EMIs, card dues on time, the amount one has borrowed, credit limit available, etc. 

"A person should never spend more than 50-60 per cent of the credit limit of his\her card, as it could bring a negative effect on the credit utilisation score of the user", added Mathpal.

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One should keep in mind, to check all fees, effective annual percentage rate (APR), benefits and offers, and any other feature or hidden charges before applying for a credit card. As only the one parameter like annual fee or APR is not enough.

Deepesh Raghaw, Investment Advisor, Personal Finance Plan mentioned, "In case, one possess mutiple credit cards, surrendering the one with no or very less use is reccomended, it may effect on the overall credit utlisation score but keeping a credit card without any use adds unnessesary costs and burden."

To cancel or surrender the credit card, one can approach to the respective branch or customer care of the bank. Make sure you clear all the dues and interest payments before closure.