There are some people that have a lot of credit cards and many that have just one with some not having one at all. If you have one and are considering another then it can be wise to about whether you are making the right decision for you. There are advantages and disadvantages to having multiple credit cards and it is good to have a think about these before making your decision as to what you are going to do.
Cost
You will find that credit cards will differ in their interest rate charges. Therefore, if you see one that is cheaper than yours, you might be tempted to get it and use it so that you can have access to cheaper money. This can be a good idea, but you need to think about whether it is a good idea to keep your original card as well. If you have both then you have the potential of getting into more debt. You may decide to keep both and keep a check on the rates and then use the one that will be the cheapest. However, if you tend to repay the balance in full each month then there will be no need to worry so much about the interest rates as you will not be paying interest, but it is wise to have some idea of what is going on with them just in case you are in a situation where you cannot afford to pay them.
Access to Credit
If you need to borrow a lot of money then you may find that one credit card will not be enough. There will be a limit on each card as to how much you can borrow with them and so you might find that you need more than you are allowed to have on one particular card. How much you are allowed will depend on the lender and it may be partly determined by your credit record as well. You will need to decide though, whether you feel that this will be a wise thing for you to do. You might find that it will tempt you to spend more money than you can afford and this is not a nice situation to be in. You could end up spending too much and find that you will not be able to afford to repay it.
Repayments
It is really important to think hard about the expectations with regards to repayments. Credit cards will expect you to make a payment each month but the amount you are expected to pay will vary. You will have to a pay a minimum amount which will cover the interest and perhaps just a little more. This is likely to be an amount you can manage even if you have two cards, but it is worth checking. It is also good to think about the fact that you will really need to think hard about making sure that you consider how you will repay the balance. You will need to repay it at some point and the longer that you leave it unpaid, the more expensive it will be as you will have to keep paying the interest on it. Therefore, it could be wise to think about whether it is a good idea to have two cards with such a large joint credit limit or whether it will be easier for you to manage to repay just the one card. It will really depend on how much extra money you will be able to borrow and how much you think that you will need.
By Bailly
I really enjoy finance writing because it is something that I know a lot about. I was in a tricky situation and so did lots of research about finance. It really helped me, not only then but ever since and it is really great to be able to have the opportunity to be able to pass on what I have learned to help others. I therefore try to explain different things in the articles that I write and give various tips in the hope that others will be able to make some of the changes that I did in order to get their finances in order.