Deciding Whether to Add Another Credit Card to Your Wallet

The Benefits of Owning Multiple Credit Cards

Thirty percent of Americans have only one credit card, but there can be advantages to having multiple cards in your name. Having a backup card can be helpful in case of identity theft or loss of your primary card. Moreover, multiple cards can help lower your credit utilization ratio, improving your credit score.

Creditworthiness and Credit Score

• Credit Utilization: Maintaining a low credit utilization ratio is crucial for a high credit score. By spreading your expenses across multiple cards, you can keep this ratio low and potentially boost your creditworthiness.

Earning Rewards

• Rewards Optimization: Owning cards with different rewards structures can help you maximize the benefits you receive on different types of purchases. Strategically using multiple cards can lead to quicker accumulation of rewards.

Keep in mind that having multiple credit cards should be managed responsibly to avoid overspending or accumulating excessive debt.