Once you’re 18, you will finally be able to apply for a credit card. This handy little plastic square will become an integral part of your financial life. Not only does it offer convenience, rewards, and the ability to build credit, you can also finally buy that item you’ve been eyeing up for so long.
So, once you’re able to sign up for one, why not just go the whole hog and get another?
It’s time to investigate whether it’s really a case of “the more the merrier” when it comes to credit cards.
Is It Possible To Have Multiple Credit Cards?
In the UK, there’s actually no limit on how many credit cards you can have. You may have more than 1 if you want to.
Multiple credit cards can be useful. As long as you manage them responsibly.
So, before you get carried away applying for multiple credit cards, let's weigh up the pros and cons. This will help you decide if having more than 1 is really the right decision for you.
What Are The Benefits Of Having Multiple Credit Cards?
- Increases Credit Utilisation - This is the percentage of credit you’re using. By having multiple cards with high credit limits, you can keep your utilisation low, which can help improve your credit score.
- Helps Separate Expenses - By having more than 1 credit card, you can keep your personal and business expenses separate. This can be pretty handy for anyone who struggles with organisation!
- Maximises Rewards - Whilst it’s not all about the rewards, it certainly helps! More than 1 credit card can give you access to multiple reward programmes including cashback and airline miles. Who doesn’t like the sound of that?
- Emergency Backup - We’ve all been there. One minute you have your card, the next it’s nowhere to be seen. So, it doesn’t hurt to have a backup if your credit card is lost or stolen.
What Are The Disadvantages Of Having Multiple Credit Cards?
- Hard to Manage - Having more than 1 credit card can be difficult to handle. You might find it a faff needing to keep track of different outgoings and payment dates.
- Temptation to Overspend - This goes out to all the shopaholics out there! Having multiple cards may tempt debt if you’re not disciplined with your spending habits.
- Annual Fees - Some credit cards come with annual fees. So, if you have more than 1 credit card, you might find these costs adding up.
Should I Have More Than 1 Credit Card?
Of course, it’s ultimately up to you on how many credit cards you should have. In the UK, you can have as many as you’d like. And, if you use them all responsibly, it won’t negatively impact your credit history.
But the better question to ask yourself is how many credit cards should you have.
Though you can never have “too many” cards, you may still lose money from multiple annual fees. It may also be tricky to keep up with your bills if everything is charged to different cards.
The right amount of credit cards for you will depend on your organisational skills, spending habits and credit history. In the UK, the average person has between 1 and 3.
Depending on the person, having more than 1 credit card may be a good idea. It could offer more flexibility, rewards, and a backup if things ever go wrong. On the flip side, it could mean more organisation, higher annual fees, and even a negatively impacted credit score.
So, whilst it’s possible to have more than 1 credit card, is this wise? Maybe that’s a question you need to ask yourself!
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