Credit Cards: When More is Merrier

Credit Cards: When More is Merrier


At a time when consumers with credit problems have wreaked havoc on the mortgage industry, it's not surprising to find that many people carry more than one credit card. However, when you consider the advantages, having multiple charge cards makes sense.


Among financially conservative people, the notion of debt has always been frowned upon. However, debt tools, such as credit cards, aren't evil at all if used wisely. Carrying multiple credit cards can enable you to enjoy some substantial benefits.

1. Safeguard against identity theft

With identity theft an ever-present danger, you can use an extra credit card to your advantage. You could, for example, consider designating one credit card for online shopping. Internet shopping can be more prone to attacks by identity thieves. If you've designated only one card for use on the net, you can prevent your other charge accounts from being attacked.

2. A great back-up

In the event that you misplace your credit card or lose your wallet, having a back-up card provides you with a source of instant funds. Instead of storing it in your wallet, however, find a secure place. Choose either an in-home fireproof safe, or a safety deposit box at the bank. A backup is also nice to have available if one of your other cards is compromised.

3. Alternative option

Besides having a backup at home, carrying multiple cards can come in handy when you're out shopping. Different vendors have different policies regarding the credit cards that they accept. What if you stumble upon the perfect item, but the vendor only accepts MasterCard, but not American Express? It's wise to have both options, just in case you run into a bind.

4. Rolling in the rewards

Credit card companies are falling over each other in the ongoing attempt to woo new customers. Many offer generous rewards programs, and if you pay off your balance every month, you can scoop up some nifty gifts.

Choose a few different rewards cards, and be careful to link the paybacks to something you value (travel points if you love to travel, for example). Don't spread yourself too thin. If you have too many cards, you'll have to wait a long time to cash in the rewards.

Carrying multiple credit cards is a big responsibility, however. You'll have quite a few monthly statements coming your way, and you'll need to make sure that you pay all those balances in full and on time; otherwise, your credit score will suffer. If managed well, however, carrying multiple cards can produce big rewards. You'll have a backup in case you misplace your wallet or your card isn't accepted. You can designate one card specifically for online expenses, minimizing your exposure to online identity theft. And you can take advantage of numerous rewards programs offered by the issuers.

There are countless reasons why you should avoid debt. But don't let them steer you away from the multiple benefits of using multiple credit cards.