Disadvantages of multiple credit cards??

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raja_mastana

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Wanted to know how many credit cards do you guys keep?

Almost all credit cards are totally free (no annual charges etc), so what would be the disadvantages of keeping many cards, if any.

I know, if all gets stolen, then you are in bigger trouble ... anything else?
 
Unless each card is used for a specific purpose, it is difficult to manage and track expenses made on multiple cards. You run the risk of running into a large debt without really knowing it. It's better to have a higher credit line on a small number of cards rather than small credit lines and tons of cards.

I have 4 primary cards and each one is used for a specific purpose (online transactions, fuel, dining out and shopping) since each card was procured with the objective of maximizing the benefit from using it.
 
No problem to having many cards provided you can track your expenses.

But in countries with credit rating systems they are a big no-no as it lowers your credit rating. Now if you don't need to make any large purchases where you need credit ie a house or car it not a problem otherwise yes.

So for now its fine, but when we do implement a credit rating system it will be, and i expect that to happen if the UID project is successful. Why'd you think so many banks are interested in it ;)
 
it depends, u can keep 1 card for all purposes or multiple cards , each for a different purpose. these days for online usage u can create virtual cc's created from your actual credit card. major banks like icici and hdfc have this facility, not sure of others.

also, all banks have a call in zero responsibility option. if u loose ur cc or ur wallet gets flicked , the bank will take care of any illegal transactions that happen on the card 'after' you have reported the loss of the credit card. so as long as u report it on time, its ok. I lost my cc last year and the banks customer service was so fast, they dug out my card based on other searches, without me even telling them the number and the card was locked in exactly 2 mins on call.

if u are getting a high value credit card, dont say no to it , take it and keep it at home if u dont want to lug it around. its extremely usefull in emergency situations like urgent medical emergency's.

keep a track on ur expenses.

keep a limit of how much u can spend on the card.

for me if im too broke to buy something i would buy it on the cc, KNOWING the fact that i will have cash in hand to pay it off in the next cycle before it starts getting on interest.

other benefit is conversion to EMI for large purchases. ( i remember buying my desktop on EMI option and paying a small sum of 1.4k each month) for many its an easier task to pay 1.4k each month then shell out an entire chunk in one go.

last but not the least, it doesnt matter how much of these u have, its how u use it, self control over the counter - and swipe resistance is all you need.
 
There is no such thing as a free lunch. There is always a price associated with all those free cards even if its not a directly visible monetary cost. So don't get greedy over free credit cards. Control the urges to jump at anything that's advertised as free of cost.

1. The more the number of cards, the more the nuisance you have to put up with all those tele-marketer calls.

2. You will be theoretically increasing the probability of your becoming a victim of credit card fraud.

3. If you are the kind who does not have proper control over your spending, you would end up using the cards and spending more than you would like to. For some it many even end up as a habit or even an addiction.

IMO two credit cards is more than enough for convenience purposes. Almost every credit card has a billing cycle of 1 month. So 1 month is the max time you can have your credit before the bank levies interest on your credit. However if you have only one card and you purchase something a day before your credit card billing date, you will end up playing for that immediately. If you have two cards with about a 25~29 days separation between the billing dates, you can always use the card which is farther way from its billing date.

One more guideline I would recommend you to follow is to never allow the credit limit on all your cards combined to exceed more than 2~3 months worth your salary/earnings.
 
What is the OP's reason to have more CC's ?

More spending limit, yes, but is there anything else.
 
I keep amex and visa both linked to same account... i dont wanna have anymore coz i wanna collect reward points in one :D ..

usually get a call once in a week for free cc shit
 
I have 4 and all for diff purpose so no issues till now and secondly if incomming of funds are on then no issues
 
Just one credit card with me for last 4.5 years. ICICI one, it has a stupid reward point reimbursement system. Useless stuff at ridiculously high point value. But supposedly everything in this is now linked to that imint card. I dont have that either.
 
1. For Fuel (free)

2. For Airmiles (free)

3. For Platinum Assist (paid)

The first helps in guzzling fuel for the vehicles, no need to carry tons of cash, or make frequent ATM trips.

The second helps in getting good airmiles and is linked to a FF program, so even more points.

For the third I paid one-time, and the yearly renewals get waived off every year, although there are yearly charges. Plus interest rates are lowest on 3rd.

In my case all 3 have different due dates also, which helps in the monthly money mgmt.

Again, I have never kept outstanding amounts or rollover balances, so that helps too.
 
had two. i use one only now. killed the other card after i saw that i couldn't control spending on it. :D
 
Lord Nemesis said:
There is no such thing as a free lunch. There is always a price associated with all those free cards even if its not a directly visible monetary cost. So don't get greedy over free credit cards. Control the urges to jump at anything that's advertised as free of cost.

1. The more the number of cards, the more the nuisance you have to put up with all those tele-marketer calls.

2. You will be theoretically increasing the probability of your becoming a victim of credit card fraud.

3. If you are the kind who does not have proper control over your spending, you would end up using the cards and spending more than you would like to. For some it many even end up as a habit or even an addiction.

IMO two credit cards is more than enough for convenience purposes. Almost every credit card has a billing cycle of 1 month. So 1 month is the max time you can have your credit before the bank levies interest on your credit. However if you have only one card and you purchase something a day before your credit card billing date, you will end up playing for that immediately. If you have two cards with about a 25~29 days separation between the billing dates, you can always use the card which is farther way from its billing date.

One more guideline I would recommend you to follow is to never allow the credit limit on all your cards combined to exceed more than 2~3 months worth your salary/earnings.
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I agree with 'Lord Nemesis'. Two credit cards is more than enough for regular use. I have 2 cards and use one of them as a primary card and have the other as a backup only occasionally use it so they dont deactivate it.

I also use the virtual credit credited with the primary card for online transactions.

The 2 card policy is also good to accumulate the points, instead of spreading across many cards.
 
Are there any cards which can save me some money while buying fuel ??

Also AFAIK when cc are used at fuel stations they have some surcharge which simply means i am paying more for that amount of fuel vis-a-vis i would have paid in cash.
 
I tend to be disorganized and so keep ONE credit card. Infact I also tend to use just ONE debit card.

I think, it keeps things simple.
 
Thanks for the info guys :hap2:

blr_p said:
What is the OP's reason to have more CC's ?

More spending limit, yes, but is there anything else.
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Yes more limit and every bank has tie ups with different brands, so with multiple cards, more chances of discount.
salluks said:
i have 2
one for VISA and one master card

thats about it.
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same here :P
raksrules said:
Are there any cards which can save me some money while buying fuel ??
Also AFAIK when cc are used at fuel stations they have some surcharge which simply means i am paying more for that amount of fuel vis-a-vis i would have paid in cash.
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Yes there is 2.5% surcharge, but if you pay a one time fee, it will be waived off for future transactions. Also, certain cards have it as a standard feature, so no need to pay fee.

I guess, i am better off with two cards, with many cards keeping track would be unnecessary trouble. In case the card offers some exclusive feature, then would think about it ;)
 
sujit801 said:
Yes more limit and every bank has tie ups with different brands, so with multiple cards, more chances of discount.
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This will take some serious discipline & mgmt skills to keep it under control.

Is it worth it ?

Lord Nemesis said:
One more guideline I would recommend you to follow is to never allow the credit limit on all your cards combined to exceed more than 2~3 months worth your salary/earnings.
Click to expand...

Yep, easy to lose track of this with many cards.
 
raksrules said:
Are there any cards which can save me some money while buying fuel ??

Also AFAIK when cc are used at fuel stations they have some surcharge which simply means i am paying more for that amount of fuel vis-a-vis i would have paid in cash.
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Indian Oil Gold - Citi Visa/Master

HPCL Gold - ICICI Visa

No Surcharge at specific pumps.

Std Chartered also had one for BP Pumps.

blr_p said:
This will take some serious discipline & mgmt skills to keep it under control.

Is it worth it ?

Yep, easy to lose track of this with many cards.
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It isn't that difficult, and its always worth it!
 
blr_p said:
This will take some serious discipline & mgmt skills to keep it under control.
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Actually, i do need based shopping and not fun based shopping :P, so its under control.

Is it worth it ?
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Hmm, depends, if the card is something exclusive from what you have then yes, else no :).
 
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