How Many Credit Cards Can A Person Possess In India? Check Pros And Cons Of Having Multiple Credit Card | Personal Finance News


New Delhi: With the introduction of credit cards, payments have been made easier. Credit cards have helped people spend more money and have come in handy in emergencies. Now, if you are a credit card user, you may have wondered about the number of credit cards that you can ideally have. Continue reading to know if you can possess several credit cards as well as the benefits and drawbacks of doing so.

How many credit cards can a person have at once in India?

Credit cards are a type of short-term loan that can be used for purchases, bill payments, and cash withdrawals. A person can possess multiple credit cards simultaneously and there’s no specific cap on the number. It’s better that a person only has as many cards as they can reasonably manage and pay them off fully by the due date.

Eligibility for multiple credit cards

Most of the credit card issuing companies favor applicants with a minimum annual income of Rs 4-5 lakh. The applicant must be either salaried or self-employed. A high credit score is also necessary because it will speed up the application acceptance process. 

Check Pros And Cons Of Having Multiple Credit Card

Benefits of possessing multiple credit cards

There are potential benefits to having multiple credit cards. The positive side to holding multiple credit cards is:

•   Having multiple credit cards means a higher overall credit limit. This can provide a financial safety net for large purchases or unexpected expenses.

•   Every credit card has a unique set of advantages. You can get a greater range of benefits, such as access to airport lounges or concierge services, by carrying numerous cards.

•   Your credit utilization ratio, a key factor in credit scoring, can improve with multiple cards. You can keep individual card utilization low by spreading expenses across several cards.

What to keep in mind when holding multiple credit cards?

If you are considering having multiple credit cards, keep these things in mind:

•   Having multiple credit cards means receiving more bills at the end of each month. If you are unable to pay them on time, the financial burden may increase.

•   When buying multiple credit cards, people should consider certain charges like joining fees, annual fees, transaction charges, etc.

•   It is highly likely that when you apply for multiple credit cards in short succession, your credit score will be affected. 

•   You could get into a debt spiral as having multiple credit cards can result in mounting credit card debts.



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