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Nov 03, 2011, 06.20 PM IST
IF there were 10 commandments that you abided by in your life I'm sure that obvious ones like 'thou shall not lie' and 'love thy neighbour' would definitely feature on the list.
Certified Financial Planner, Veena Malgonkar rightly points out cards are an expensive form of credit and its risky to own too many.
Nobody denies that credit cards are a good thing; what with the convenience they offer. But didn't you know that too much of a good thing can be bad?
But how much is too much? "One should definitely have more than one credit card. Of course, not five or 10, but three is a good number," says Puneet Chaddha, Head, credit cards, HSBC. "First, you can compare their services. Second, you get more usage offers. With a higher credit limit and all cards put together, your risk exposure is lower."
Some also find that it helps to classify credit cards for separate uses/people, for example one for the wife, one for online transactions, one for company expenses, fuel card, cash-back card for home purchases etc.
If you just cannot live without multiple pieces of plastic in your wallet, lets see how you can squeeze out the maximum benefit every time you transact.
Check out your billing cycle
Check out your interest rate
And if you fall? Remember that interest rates are sky-high (around 36% per annum) not to mention late fees and other hidden charges. So to stay on the straight and narrow not only do you need enormous self control but you also cannot afford to let your eye off the ball even for a single day.
So you see, the result of breaking the multiple credit card commandment is that another ten set of commandments spring up that you simply can't break. Now isn't it easier to just follow the first commandment and stick to one credit card?
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Tags: Multiple credit cards
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