Multiple Credit Cards: Know all the important pros and cons!

Updated on: 21 Nov 2023

Access to multiple credit cards has made it easier than ever for you to shop, address daily expenses and cater to emergencies. After all, credit cards offer easy access to credit whenever you need it. What’s more, you get to enjoy exciting benefits like:

Cashback on certain transactions
Discounts and deals
Reward points
Fuel surcharge waivers
Other perks

If you plan to get more than one credit card, it is natural for you to think, “How many credit cards a person can have?” Well, in an emergency, having a range of cards in your wallet can come to your aid. However, if not used diligently, multiple cards can harm your financial health and well-being.

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Benefits of having multiple Credit Cards

Check out why having several credit cards can be an advantage for you.

Higher Spending Capacity

When you get a card, the issuer gives you a certain credit limit. This is based on your financial standing, past repayment history and other factors. If meeting your needs with a single credit card is difficult, you can apply for another credit card.

This helps you get an additional credit limit and you enjoy an enhanced spending capacity. This can help you cover your big-ticket and daily expenses conveniently.

Chance to Improve Your Credit Score

A high credit score is an indicator of good creditworthiness, which makes it easier for you to get approval on your loan applications. Your credit score is influenced by a number of factors and one of them is timely repayment of credit.

When you have more than one credit card, you can distribute your expenses across various cards and due dates. This can help you pay your dues on time and boost your credit score.

Way to Maintain Your Credit Utilisation Ratio

The credit utilisation ratio is another important factor that affects your creditworthiness. Experts recommend keeping it at around 30%, which means you can only use your credit card limit up to a certain point. For instance, if your credit limit is ₹1 lakh, you can use just ₹30,000.

With a single credit card, spending as per your needs can prove difficult due to this reason. However, if you have more than one credit card, you will be able to utilise 30% of the available limit on each card. This will help you address your needs while maintaining the ideal credit utilisation ratio.

Drawbacks of having multiple Credit Cards

Here are some limitations associated with having several credit cards on hand.

Higher Associated Charges

Credit cards are associated with various types of fees and charges like:

Annual maintenance fees
Joining fees
Transaction charges

When you have multiple credit cards, be careful about accumulating all these costs. If not,

these costs may outweigh the benefits you get.

Enhanced Risk of Falling Into a Debt Trap

Having a number of credit cards means that you get an increased spending limit. You must be cautious while swiping your cards since you need to pay your dues in full at the end of the billing cycle.

If you have several credit cards, you may lose sight of your budget and spend more than you can afford to repay. Non-repayment of the dues comes with high-interest charges and late repayment fees. If you are not cautious, you may get stuck in a debt trap.

Difficulty in Management

Another limitation of getting many credit cards is the difficulty in tracking them. This is because each card follows a different billing cycle and due date. When you have multiple liabilities, you may miss out on some payments. This can lead to accumulated interest on outstanding amounts and bring your credit score down.

All in all, having several credit cards comes with a number of pros and cons, but it all comes down to making the right decision. It is important to understand your requirements and ensure you make the most of the benefits that these cards offer.

One card that offers a range of advantages is the Fibe Axis Bank Credit Card. Get it now on the

Fibe App or on our website to enjoy discounts on dining, up to 3% cashback on every transaction and more. You can link it with your UPI ID and execute various transactions conveniently and safely, too.

FAQs on How Many Credit Cards You Should Have

Is 4 credit cards too many?

The suitable number of credit cards depends on your requirements and preferences. Four credit cards can give you a higher credit limit. This can help you cover your expenses effectively while also enabling you to maintain a lower credit utilisation ratio. If you can manage four cards effectively without overburdening your finances, there is no problem.

How many credit cards are considered a lot?

You can get any number of credit cards since there is no restriction on how many credit cards you can get. However, you must remember that several credit cards have different billing cycles and tracking the due dates can be difficult. Having up to three cards is ideal if you can manage repayment seamlessly.

How many credit cards can I have?

The right number of credit cards to have depends on your personal expenses, usage and preferences. If you need a higher amount for your expenses, getting several credit cards can help as they help you keep the credit utilisation ratio in control. That said, you must consider your existing financial obligations before opting for multiple cards.