Second Credit Card:
Having a second credit card can be helpful if it is managed wisely. It not only gives you more flexibility during emergencies but also helps improve your credit score. However, before applying for another card, you must carefully evaluate your repayment ability and spending habits.
One of the main advantages of having a second credit card is a better credit score. Lenders consider you more responsible when you manage multiple cards properly. Another benefit is that your Credit Utilisation Ratio (CUR) stays lower. For example, if your current card has a ₹4 lakh limit and you spend ₹1.2 lakh, your CUR is 30%. But with a second card carrying the same limit, your total available limit becomes ₹8 lakh. Spending the same amount brings down your CUR to 15%, which is considered healthier.
A second card can be a great support during unexpected situations. If your first card’s limit is not enough for a large expense, the second card gives you extra room. It can also act as a backup if your main card is lost or blocked. Since banks may take a couple of days to issue a replacement, the second card ensures you are not stuck without funds.
Different credit cards offer different rewards. If your first card gives cashback, you can select a second card with travel rewards or shopping discounts. This way, you get to enjoy multiple benefits instead of limiting yourself to just one type.
You may consider a second card if:
Your CUR regularly crosses 30% even though you pay in full.
Your bank refuses to increase the limit on your first card.
Your salary or income has increased, and you can easily manage repayments.
While having two cards increases your financial strength, it can also be risky. Avoid applying for several cards at once, as it lowers your credit score. If you plan to take a loan soon, getting a new card may reduce the average age of your credit history, which lenders see negatively.
In short, a second credit card can be a smart choice if you are disciplined with repayments and control your spending.
ALSO READ: Financial Literacy: 5 Credit Card Myths You Should Know
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