Having Multiple Credit Cards

By Author: Danny Aaron
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Having multiple credit cards can be a major advantage to you but there are also disadvantages. You might be worried that you will lose track of your payments and this could be catastrophic to you finances. This is not necessarily the way it should be and there are ways of managing these cards. Of course personal preference is also a factor and you should have as many credit cards as you feel you can manage.

The Benefits of Having Multiple Credit Cards

Some merchants don't accept all cards, some may only accept Visa or MasterCard and in this circumstance it would be useful to have one or the other. Credit card institutions have different rewards and by owning multiple credit cards you will be able to reap all those rewards plus those of your other credit cards. Also you will be able to build a steady credit history. Another great advantage is that you can dodge fraud by only using one of your multiple cards for internet transactions, consequently limiting scammers that hack into your cards to one only. Some cards are specialized in their remunerations; some cards may offer you air miles as opposed to some that ...
... offer you lower rates on other products. Therefore some like to keep one card for those specific areas because credit cards rarely offer two exceptional bonuses.

Another benefit would be that if you run a business from home or a small business, your expenses can get intertwined and you become frantic trying to separate the two. By splitting your home expenses credit card from your business card would be a wise decision. This makes your money more organized enabling you to focus on improving your home and business life.

The Disadvantages of Multiple Credit Cards

With the disadvantages it boils down to you. It's about whether you are able to keep track of your payments. You need to ask yourself the following questions: Do you always pay your bills on time? Do you have a disciplined demeanor? Are you organized in your life and your finances? If your answer is yes then you will have no problems in handing the responsibility and you will be able to enjoy the rewards. Another disadvantage could be that you might hurt your credit score because lenders may think that you can't pay your single card.

Having multiple credit cards can be both rewarding and disappointing. It depends on who the card holder is, if you decide on owning multiple credit cards you need to accept responsibility for them and don't think it's your ticket to be able to spend more frivolously. You need to also always start with one credit card, to test the waters and evaluate whether you are a diligent credit card holder, by knowing who you are with a card in your hand you and you only can decide if you will be able more.
Danny Aaron manages the website http://www.creditcardsandloans.co.za, a website devoted to offering the best credit card information for consumers in South Africa.