Ready to play the credit game? If yes, then this strategy can be a gamechanger for you. While there’s stigmas that surround opening multiple credit card accounts, it can actually have great advantages when it comes to building healthy credit. If you stay organized, keep an eye on your accounts, and maintain activation, then you’ll certainly win!
Here’s all the perks you should (and need to!) know about when it comes to opening multiple accounts…
Credit cards have amazing rewards systems that can add up beautifully when in good standing. From discounts on flights, restaurants, delivery services, hotels, gas, supermarkets and cashback opportunities there’s an abundance of benefits points can earn you (I mean, no one ever hated a discounted vacation to the Bahamas!). The best way to play this is to open cards that have different offerings in order to optimize the variety of advantages.
Maintain a Low Credit Utilization Ratio.
Looking to improve your credit score? This will do the trick. Having multiple credit cards can actually help lower your credit utilization ratio (the amount of credit you’re using compared to the amount available). Using around 10% of the available funds is best for your score when possible.
Splitting the bills you already know you have across multiple credit cards is a great method for a healthy credit score. You can keep accounts active, maintain a low balance and pay for things needed for the month. Example: One card can be for food, another for your cell bill, another for your internet service and so on. This can be a credit Win-win!
Provides a Plan B.
Sadly we aren’t in control of fraudulent charges on our cards. If somehow your card becomes compromised, it can take days to sort out with your bank and receive a valid new card. To avoid being stranded without any access to credit (and developing a massive headache), having multiple cards provides you options.
Clearly there are many pros to having multiple credit cards that aid in accruing healthy credit and additional bonuses, as well as provide options during life’s most unpredictable circumstances. The above perks definitely speak for themselves. As long as you’re smart about your payments and have a pulse on all active accounts, you’ll see the silver linings and quick gains!