You have a Credit Card that you have used successfully. You have utilised all the Credit Card offers as mentioned here. You have paid your dues on time. Now you are contemplating whether you should get a new Credit Card. Getting a second Credit Card can be a good idea, however there are points to consider before doing it.
Cited below are few of the reasons to get a second Credit Card:
- Improve Credit Score
Having one or more Credit Cards is proof that you can manage your debt and credit well. This helps improve the credit score. It is essential though that you pay your balance in due time. Whether you can get a second Credit Card also depends on your credit score and if you have been paying the balance on the first one in time.
- Back-up in Emergencies
Your second Credit Card can come in handy in case of an emergency. You could be in a situation where your have run out of balance on the first card, or your first card could be lost or stolen. Applying for a new card in such a scenario can take upwards of 72 hours. Therefore having an alternate Credit Card can come in handy. To help manage your balance better, you can assign them as primary and secondary, using only the primary card for your regular spends.
- Higher Credit Limit
Getting a second Credit Card increases the available credit limit, by default. There could be times when you wish to spend luxuriously – during a holiday, or when you’re out on a special dinner. At such moments, worrying about your card balance should be the last thing on your mind.
- Diversify Card Benefits
The best way to choose your second Credit Card is by analysing whether the rewards being offered by the second one are diverse as compared to the first. For example, if you travel frequently, you can choose a card that offers you airway miles or rewards on flight booking. It helps to avoid overlap of rewards in both the cards.
- Balance transfer to lower interest rate
In case you have utilised your first Credit Card to it’s available limit and are unable to pay the entire amount in time, you may consider transferring your balance to another Credit Card with lower or zero interest rate. This will help you save money on interest, and you can pay back your debt faster.
Having a second Credit Card can be a boon, if you utilise the maximum benefits. While juggling between multiple cards, always remember to pay the balance back before the due date.
To apply for HDFC Bank Credit Card, click here.
Read more on how to choose the right Credit Card.
* Terms & conditions apply. Credit Card approvals are at sole discretion of HDFC Bank Ltd. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.
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