Using more than one credit card

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Avatar for bala41288
11 months ago

Credit cards have become one of the biggest needs in today's world. The way people see credit cards in other countries is a little different from how it is being seen in India. Most people might think that credit cards are for buying something with credit and paying them later. Even though that is true, there is also one more reason for using credit cards which is offers.

People have multiple credit cards because offers are given on a timely basis on different credit cards. Especially for some online purchases that are of bigger value, we also sometimes get options to convert that to EMI and pay that later. Some people may not be eligible for credit cards because they would not have any credit history. Credit history is usually created when we start receiving our salaries.

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Grabbing offers specific to a credit card

I personally have multiple credit cards because online purchases become easier for me. There are offers on different cards and it will change from time to time. In order to grab those offers, it is good to hold the cards and make use of them at the right time. Some credit cards are absolutely free for a lifetime and we don't have to pay any AMC for using the credit cards.

In addition to that, we also get reward points for using the card, and with the reward points, we would be able to purchase or claim a few things. These are the benefits with offers specific to the credit card we are holding.

Sharing the expenses

Sometimes doing all the spending from just one credit card can be challenging and people categorize and plan the usage of their credit cards. Instead of using just a single card for all our expenses, it is better to share the expenses across multiple credit cards. This way we know which card is best for which transaction. The payment also becomes easier if we take this approach.

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Multiple family members using different cards

In my case, I have 3 credit cards and I have given one to my mother and another to my wife and another is being held by me. This way I know how much my mother spends and how much my wife spends and how much I spend. It is easy for me to evaluate my expenses. I did not magically do this on my own. I noticed that some of my friends were also doing the same thing and I started adopting this model. But mostly I have access to all the 3 cards and whenever there is a need for me to do some spending, I do it from the best card that would give better benefits.

Having more credit limit

This is another interesting thing with credit cards. From time to time, the credit card providers offer us a credit limit increase. Having more credit limits helps us do transactions that are bigger and we have a cooling period of 45 days to pay our credit card bills back. Some credit cards also allow us to withdraw money based on our credit limit and pay the money back without any interest. It all depends on how we can make use of the credit limit. The good thing is that if there is an upcoming function and we have to make a big payment, we can do it with credit cards and repay them later. Having more credit limits helps in all these aspects.


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11 months ago

Comments

Credit card is useful but it should be use wisely.

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11 months ago

Multiple cards for different members of the family are okay. But, with more credit cards, the vulnerability also increases.

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11 months ago