Low credit utilization
The most obvious reason to have multiple credit cards is to have low credit utilization on each card. Ideally, you should never use more than 30% of the amount that is allocated to you. And then pay off all the due in full before the scheduled date. This shows to your lender that you are financially stable and do not rely entirely on your credit card to pay off your bills.

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But this is just an ideal scenario, and honestly, most of us do need to use more than 30% of our credit card limit. This is where having multiple cards can be an advantage. So assuming you have a single credit card with a $1,000 limit. Your usage rate will be higher than 30% of your balance exceeding $300. If you have four credit cards, each with a $1,000 limit, you can spend up to $1200 each month ($300 on each card) while still maintaining a 30% usage rate.
So, on paper having an infinite number of credit cards would be best as it will lower your credit utilization to almost zero. But in reality, each card comes with yearly fees and maintenance charges, so having more than what you need will incur hundreds of dollars in fees. So ideally, depending on your need, having 2-4 credit cards seems like a good balance.
Benefits of Having Multiple Credit Cards?
- It can help you raise your credit score
- Can assist you in establishing or rebuilding your credit history
- Come with a range of advantages, such as discounts and prizes.
- Are ideal for those who want to stay on a tight budget.
Increasing your credit limit
If you do not want to manage several credit cards or are not a fan of having to pay fees for each of the cards, a better alternative is to increase your credit score. This way, your credit utilization remains low without having to pay multiple credit card fees. But do note that you may need a high monthly income to get high credit limit approvals.
Using Secured credit cards
There are several sorts of credit cards available, each with its own set of advantages and disadvantages.
Unsecured: These are the most common type of credit cards, and they do not require a deposit. You are given credit on the merit of your income and therefore require more paperwork to get approvals. Having an unsecured credit card does not help in improving your credit score.
Secured: However, having a secured credit card can improve your credit score. A secured credit card can only be approved if a fixed amount is deposited in your name. The security deposit usually is equivalent to your credit limit. Secured credit cards are an excellent alternative for consumers looking to establish or rehabilitate their credit.
Be patient; it takes time.
There is no shortcut or quick scheme to increase your credit ratings, no matter which process you follow. It will take time, and you have to continue with the process and be patient. But life is unpredictable and financial emergencies can happen at any point in time.
A great alternative to a traditional loan is a guaranteed payday loan to help you in situations that require urgent financial assistance. They do not require a high credit score to get approval and can be applied instantly from the comfort of your home. Learn more about payday loans at our website and get a free quote today.