Does having multiple credit cards help your score?
Having more than one credit card is not a bad thing at all. It is all about how you manage them. I actually use a few myself: one just for online shopping, another for travel perks, and one I keep aside for UPI payments. Each has its role, and that helps me stay organised.
The real thing you should keep in mind is paying your credit card bills on time. As long as you clear your dues before the deadline, multiple cards can actually work in your favour. They increase your total credit limit, which makes your utilisation ratio better and helps you keep it below the 30% mark.
That is what helps your credit score look healthy. But if you are swiping too much or missing payments, your score will definitely take a hit. Here is how I keep things in check:
- I do not apply for too many cards at once, as many hard inquiries can bring my credit score down.
- I spread out my spending but always pay the full balance, so I never pay extra interest.
- Also, I check my credit report regularly to ensure that everything is on track and error-free.
In short, it is not about how many cards you own. It is about how smart you are with your credit cards. If you already have too many unsecured credit cards, you can try a secured credit card to create a better credit mix.