Should you have more than one credit card? Here's what you need to know

Managing control and convenience
With the modern digital economy, credit cards offer unprecedented convenience—Internet shopping, travel bookings, or even emergency spending. The caveat, however, is: do you hold one or more? Multiple credit cards can give spending freedom and rewards but magnify the risk of misusing it. You must be aware of both ends of the equation in making a sensible decision that best suits your spending requirements and economic goals.

Why having more than one card can mean more rewards
Having multiple credit cards helps you take maximum advantage of rewards on expenses in various categories. For example, one card can give you higher cash back on petrol, another on dining out, and the third on air miles. Thus, you can match your spend with the most rewarding card. Secondly, having multiple cards increases the overall limit, reducing your credit utilization ratio, which in the long term will be beneficial for your credit score.

The disadvantage of managing a lot of cards
One credit card is enough to make you juggle more than one billing period, payment due dates, interest rates, and fees. Missing just one payment will hurt your credit rating and leave you paying penalty interest or late fees. It is also simpler to be tempted to spend more than you can repay if you own more than one card. Today, individuals end up owing balances across cards, which leads to accumulating debt and financial stress in the long term.

What the experts say
Financial planners generally find two or three cards to be enough for most individuals, provided they use them judiciously. "Choose cards appropriate to your lifestyle and your payment ability. Avoid accumulating cards for offers," says Mumbai financial planner Rachit Maheshwari. Financial planners also caution against applying for multiple cards at the same time since it translates to multiple credit inquiries, which ultimately lower your credit score. Timely payment and good usage are more important than quantity.

Tips for responsible use
If you choose to use multiple credit cards, there is a necessity to be aware. Leave reminders or automate bills so that due dates are not forgotten. Keep an eye on your statements and rewards so that your cards are still an accurate representation of your spending pattern. Don't spend up to the limit on a particular card, and keep an eye on the credit usage. The majority of budgeting tools today allow you to keep all of your cards in one place, which makes it easier and less susceptible to error.

Select what suits you
Carrying multiple credit cards is a good method of making payments, building a good credit history, and earning rewards. But it is not for everyone. If you're making impulsive purchases or forgetting due dates, you are right to limit yourself to a single or double card. Fiscal self-control, rather than the production of plastic, should be the bottom line. Examine your own expense habits, ability to pay back, and requirements prior to expanding your wallet.