Having multiple credit cards can be advantageous, offering benefits like higher credit limits, better rewards, and more cashback opportunities. However, mismanagement can lead to a lower credit score, higher debt, and financial stress.
In this guide, we’ll explain how to manage multiple credit cards responsibly and keep your credit score healthy.
A credit score in India is influenced by factors like:
Improper management of multiple cards can negatively impact these factors, lowering your score and affecting your ability to get loans or premium credit cards.
Missing payment deadlines on any card can hurt your credit score. Use:
Maintain a utilization ratio below 30% on each card. Avoid maxing out any single card, even if your overall limit is high.
Use credit cards strategically based on rewards, cashback, or category-specific benefits (e.g., groceries, travel, online shopping).
Applying for multiple cards in a short period increases hard inquiries, which can temporarily reduce your credit score.
Older credit cards contribute to your average credit age. Closing them unnecessarily may lower your score.
If managing multiple due dates is hard, consolidate payments using a single payment day or through auto-pay linked to your salary account.
Check your CIBIL score or credit report periodically to ensure all payments are reported accurately and spot discrepancies early.
Managing multiple credit cards is beneficial if done responsibly. By tracking payments, keeping utilization low, and using cards strategically, you can enjoy rewards, cashback, and financial flexibility without hurting your credit score.