Benefits of a second credit card

The power of two

Five great advantages of holding a second credit card 

The offers for new credit cards are tempting. But should you opt for a new credit card if you have one already?

Yes, because holding an additional credit card has several benefits.

One: Option for emergency credit

If one of your credit cards is stolen or damaged and you need to make some purchases urgently, your second card will function as back-up. Hence you can keep your second credit card in a separate wallet or at home. While travelling, you can lock your second credit card in your hotel room’s safe deposit box.

Two: Lower fraud risks

In this era of sophisticated technologies and phishing scams, card details can be skimmed and accounts can be hacked. If you hold a separate card exclusively for online transactions, and you notice suspicious activity on that card, you can immediately block your card. Your second credit card remains uncompromised and safe to use.

Three: Variety of benefits

Your bank offers a range of credit cards, some of which provides benefits on specific uses, such as discounts on dining, zero-fuel surcharge, or cash back on air tickets. Additionally, card-related loyalty programmes offer several complimentary products and services when you redeem your points. With multiple credit cards, you have access to a wider spread of benefits and rewards.

Four: Staggered payments

Each credit card has its own billing cycle and due date. If you use more than one card, you don’t need to pay a large amount at one time, instead you can stagger your payments as per each card’s billing cycle. This puts less pressure on your financials.

Five: Boost to credit score

Credit rating agencies look at how much of your card’s credit limit you use while evaluating your credit score. If you are maxing out on your card, you are likely to lower your score. With two cards, you can spread your spends and stay within reasonable limits on each. It is also easier to manage repayments with two cards since you don’t have to pay them both at the same time. If you use your two cards prudently, it will boost your credit score, and make future loans cheaper and easier to get.