If the usage of the card is 80 percent to 90 percent, then it shows that the user is hungry for a lot of loans. So what matters is not the number of cards but how much to use it matters.
If one has multiple credit cards, it has both advantages and disadvantages. Though there are multiple credit cards, you may face financial difficulties at times, but if the card holders do not keep a constant eye on the card, they will surely fall into the debt trap. Experts say that if there are many cards, then it is important to use them correctly.
Get the right card and use it properly: Jitendra Solanki, SEBI Registered Investment Adviser said, one should not hold too many credit cards. He said, it is necessary that the person has the right card and they use it properly. Choose a card that offers more reward points or offers.
Use less credit card: Jitendra Solanki says, it is better if the credit card is less used, it is important to maintain its usage ratio. Solanki says, the user should not use more than 30-40 percent of the credit limit at a time. He said, a user can have 5 different cards, but if they are used 20-30 percent then it is good. If the card is used 80 percent to 90 percent, then it shows that the user is hungry for a lot of loans. So, what matters is not the number of cards, but how much to use it.
Timely payment required: If one has multiple cards, then it is fine, but if these cards are not paid on time, then it will affect the credit score. Late fees on credit cards can be avoided by keeping monthly reminders on each card due date or on the phone to pay bills. Solanki said, if users plan their expenses and repayments, then the number of cards does not matter. The user should be able to repay the amount spent using it.
Keep old cards with you: Jitendra Solanki says, users should keep their oldest card with them, as they have a very long credit history.
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