Is it bad to have more than one credit card?

If you already have a credit card you will know the importance of staying organised with your repayments.

Before you get any Credit cards you should be aware of how they work.

In 2022, Uswitch data found that there were almost 59million credit cards which is nearly one for every person over 16. As we know not everyone does have a credit card so this must account for people to have more than one.

However, of those 59 million issued credit cards there were 34 million which had outstanding balances at the end of the month which came to a total of £34million of unpaid, borrowed money.

 

Why it could be a good idea

Having more than one credit card could improve your credit score as well as allow the score to grow at a faster rate as all credit is added together. This means lenders would favour you with a great score.

Those who are self-employed will often have a separate account for their business and their personal lives. So for those who are self-employed it might be beneficial to have more than one credit card in total.

 

The downsides

Having more than one credit card also adds to the amount you have to pay back each month too. Just like having one card, you have to pay in full and on time every month to avoid penalties like a bad credit score and interest so this will only double with two credit cards. Pay on time to avoid credit card late payments, if you find yourself in trouble then this is how you can get out of credit card fees.

Having an inactive card can reflect badly on your credit score and to lenders too so if you have more than one it is best to distribute the costs between them.

 

So, having more than one credit card could be a great idea if your goals are to a goo credit score to get a mortgage or loan. However, unless you know for definite that you will be able to sensibly and effectively use the account and pay multiple cards off on time then it will do you more harm than good.