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Credit cards can add convenience to your life. Some people have only one credit card, while others depend on a multi-card strategy. But before getting additional credit cards, consider whether that’s a good choice. Don’t neglect to think about how your decision will impact your finances.

Could you benefit from having multiple credit cards? It’s possible. Here are a few things to consider to help you decide whether you need more than one credit card.

Consider your goals and reason for using credit cards

When deciding whether you need another credit card, consider your financial goals. What are you looking to gain from using credit cards?

Here are some questions to ask yourself:

• Are you looking to improve your credit?
• Do you want to learn how to manage your money better?
• Do you need help financing an upcoming expense?
• Are you hoping to earn more credit card rewards?

Pondering the answers to these questions can help you determine whether it’s worthwhile to apply for an additional credit card. There’s no reason to add a new card to your wallet if you don’t have a plan for how it will help you or improve your life.

The benefits of using more than one card

Some people may benefit from having more than one card in their wallet. One example is those looking to maximize credit card rewards. Using rewards credit cards that offer bonus rewards in your top spending categories is an excellent way to earn rewards faster.

Meanwhile, having a flat-rate cash back credit card that rewards you for purchases outside these categories can help you maximize the rewards you earn for everyday purchases. This is one example of how having multiple cards can be a smart move.

Want to boost the credit card rewards you earn with another card? Cash back rewards cards are a popular choice for many people. Explore our list of the top cash back credit cards to learn how each card earns rewards.

Another advantage of having more than one card is access to more plentiful perks. Many of the credit cards highlighted above include useful benefits that can add value to your life.

One example is trip cancellation and trip interruption insurance. Many of the best travel rewards credit cards provide travel perks like this, which may appeal to frequent travelers.

Since perks can vary from card to card, you may benefit from having more than one to take advantage of as many perks as possible. But always review the perks provided and consider whether you’ll get value from them before applying for a new card. If you won’t use the benefits, it may not be the right fit for you.

Some people may want to stick with one credit card

Some people’s goals may not align with using multiple cards. If you’re new to credit cards or are learning to develop healthy spending habits, consider starting with one card.

This way, you can learn how to manage your money and make careful decisions that help you build credit and maintain a good credit score before juggling multiple credit card accounts. Remembering to pay all of your credit card bills each month takes effort.

If you make late payments, you’ll be charged late fees. Plus, you may end up with negative marks on your credit report because of late payments. Since your payment history is the biggest factor in your FICO® Score, on-time payments are necessary for healthy credit.

Are you already in credit card debt? If so, ensure you pay off your debt before continuing to use your current card or getting a new one.

Credit card interest is costly, and interest charges can add up fast. According to the Federal Reserve Bank of St. Louis, the average credit card interest rate on cards that charge interest was 22.76% in May 2024. Don’t risk racking up more high-interest debt.

If you have existing debt, you’re not alone. It’s essential to prioritize paying down your debt. If you need help developing a payoff strategy, check out our list of the best debt payoff apps. Digital tools like this can make your goals feel more manageable.

Don’t rush to get another credit card

Take your time before applying for another card. Consider your current financial situation and decide whether getting an additional card will help you reach your goals or add more value to your life. If you already struggle to manage money or are in debt, you should hold off on getting another card and focus instead on improving your finances.

But if you can benefit from having more than one credit card, such as accessing additional benefits or earning more rewards, you may want to apply for another card. Finally, review the credit card’s features, benefits, and fees before applying so you can be sure the next card you choose is an ideal fit for you.

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