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Pros and cons of having multiple credit cards

There's no harm in having multiple credit cards, especially if you stay financially disciplined and use them wisely.

As India embraces digital financial transactions, more and more people are opting for online payment methods like UPI (Unified Payment Interface) and credit cards. Credit cards give you the flexibility of making purchases now and paying later in small instalments. 

If you already have a credit card, you may be tempted to apply for another but worry about falling into a debt trap. 

Is it good to have multiple credit cards?

In India, there are many credit card providers. Each offers a variety of credit cards that come with different features. If you're wondering if it's good to have multiple credit cards, here are 5 benefits that you can expect. 

1. Keep your credit utilisation ratio low

Having only one credit card may limit your ability to make certain purchases if you reach the maximum credit limit. However, having multiple credit cards provides flexibility to use different cards while maintaining a healthy credit utilisation ratio. Ideally, you want to keep your spending at about 30% or less of your card's credit limit. 

2. Improve your credit score

Using credit cards wisely, whether you have one or multiple cards, can have a positive impact on your credit score. Just make sure you repay your outstanding bills on or before the due date.

3. Have an emergency back up

If one of your credit cards stops working, gets lost or stolen, having another card can be a backup option. This can be really helpful in emergencies or when you're travelling. Multiple credit cards can also make it easier to pay for unexpected family health emergencies.

Learn more: How does a credit card work? 

4. Enjoy special benefits with every card

Some of the most significant benefits of having 2 credit cards are the additional perks that come with each card.

When applying for a credit card, thoroughly research the rewards and benefits offered, and choose one that aligns with your specific needs. For example, our credit cards offer cashback, airmiles and points:

  • Up to 10% cashback on your transactions
  • Complimentary lounge access
  • Exclusive welcome offer
  • Fuel surcharge waiver
  • Air miles conversion
  • 5X Reward points after spending INR4,00,000, subject to a maximum cap of 15,000 accelerated Reward points per year
  • 3 Reward points for every INR100 you spend
  • Redeem points at 1 to 1 ratio for airmiles at 20+ partners
  • Unlimited airport lounge access

Do you travel a lot? Explore travel credit cards for overseas perks. 

5. Receive introductory offers and promotions

Credit card issuers often offer introductory bonuses, credit card rewards, or promotional interest rates when you open a new account. By strategically applying for new cards, you can take advantage of these temporary benefits.

Risks of applying for multiple credit cards at once

Many credit card applications can signal to lenders that you need money and are a possible credit risk. A hard inquiry – where lenders will check your credit score – may stay in your credit report for up to 2 years. Do a soft inquiry first to confirm your credit card eligibility. Being rejected for a credit card can impact your credit score. 

Final word

Still wondering if it's good to have multiple credit cards? Well, yes and no. Knowing how credit cards work and using them wisely can help you enjoy various benefits. With an HSBC Cashback Credit Card, you can get 10% accelerated cashback on all dining, food delivery and grocery spends, plus complimentary lounge visits and much more. 

Apply online in 3 steps

You might also be interested in

We compare the most common types of credit cards in India, and what they're used for.
We outline some of the ways in which you can boost your score for better borrowing.
Understand the differences between a credit card and debit card and you'll know when to use them both.


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