Is it Worth to Issue Several Credit Cards in Different Banks?

17 Mar

Is it Worth to Issue Several Credit Cards in Different Banks?

A credit card is undoubtedly a convenient tool for payments. You don’t have to keep always a large amount of cash with you, given the splendid opportunity to pay off easily in merchant venues, make purchases online, buy railway and air tickets without leaving the workplace, to pay by card abroad.

Often, clients are curious whether it is possible to get two or more credit cards in different banks. Because these banking products in different establishments can vary in:

  • set of available cards: f. e. a bank may specialize only in cards of economy or international class;
  • service fee;
  • the maximum amount of the limit;
  • term of grace period (on average, from 30 to 55 days);
  • the percentage  of the bank commission when withdrawing funds from the ATM, etc.

FAQs:

  1. Is there any restriction on the number of credit cards for one person?
  2. Are credit terms changing for those who have several loan products?
  3. Is there any hidden benefit in having two credit limits simultaneously?

Obvious Perks

Generally speaking, there are no restrictions on how many credit cards an individual can have.  However, in practice, it is extremely rare to be issued more than 3-5 such payment tools. Nevertheless, a client has a choice on the diverse market and can compare different bonus systems. For example, one credit card allows you to return a part of the spent amount, the second one –  to accumulate bonuses. Co-branding cards give discounts on purchases in partner networks, which allows saving significantly. There are also options that envisage withdrawing cash without commission.

A variety is always better than just one option since the client can actively use the first card, and keep the second or third ones in case of emergency. Typical situation: a person doesn’t have money to pay off credit on one card on time, so he can transfer money from the second one. For such purposes it is better to take at least one banking product with a long interest-free period. However, advantageous use of several cards is possible only for wise and obliging individual who takes into consideration grace periods and possible interests. It is equally important to take into account the fact that each bank product requires payment for service, unless otherwise provided. So when planning issuing more than 2 cards, it’s wise to take a sit and calculate all the payments on service and credit lines.

The Most Valuable Tip

Industry insider give their advice: if a client wishes to have several credit cards, he should apply to different banks at the same time, because the Credit History Bureau has had no data yet on his loans.  That can envisage approving a higher credit limit for each card. If the second card is being issued when the borrower has already had his first card, the banking institution may refuse to issue a new one. Be sure to provide updated information. Otherwise you will be denied in further lending.

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