Credit Card Tips

8 Advantages of Having Multiple Credit Cards

Credit Card Tips
April 19, 2024
5 min. read

Everyone wants financial security, and some go to great lengths to optimize their finances and make each cent count. Indeed, exploring every avenue to help hit this target can enhance financial independence and future-proof themselves and their families.

One powerful tool that many often overlook or shy away from is using multiple credit cards. Some may view having two credit cards from the same bank as unnecessary. However, if done correctly, it can be a practical way to improve expense management.

Let's examine the pros of this practice to answer the question: is it good to have multiple credit cards?

8 Benefits of Securing Multiple Credit Cards

Is it wise to have multiple credit cards? Reflect on the following advantages to determine whether this strategy can benefit your financial situation.

  1. Enjoy more chances of getting rewards and cashback
    Each credit card has its reward program, from reward points or cashback to travel miles. Diversifying your card portfolio gives you the best incentives for specific purchase categories.

    For instance, one card might offer reward points for dining and entertainment expenses, while others provide cashback on groceries and gas.

    If you’re interested in a card with accelerated rewards, RCBC's Visa Infinite Card delivers extraordinary value. Earn Reward Points for every PHP30 spent, 3x for local online purchases and 5x for overseas in-store and online purchases.

    With these reward points never expiring, you can accumulate more and more for every purchase and exchange them for AIRMILES, shopping vouchers, cash credits, charitable donations, and other rewards.
  2. Gain a higher aggregate credit limit
    Multiple card ownership means accessing a higher total credit limit across your accounts rather than solely relying on a single card. It's particularly advantageous for managing hefty expenses or when you need to settle unexpected payments. Then, you can avoid maxing out a single card that may negatively impact your credit standing.
  3. Have multiple options for emergencies
    By owning multiple credit cards, you gain additional resources to handle unforeseen financial problems, like emergency room visits, car repairs, or sudden unemployment. Some cards also make these situations more convenient. Notably, RCBC app's UnliPay feature lets you make instant payments for rent, bills, and other expenses requiring real-time transfers when you're short on cash.
  4. Separate expenses seamlessly
    Need to separate and categorize your expenses to make tracking and budgeting more effective? Multiple credit cards may be the solution since you can assign specific cards for different purchases.

    You could designate one credit card for daily spending, such as groceries and entertainment, while reserving another for larger ones, like travel bookings and home improvements. It's a simple method that allows you to accurately monitor where your money goes and identify areas where you typically accumulate expenses.

    Do you have RCBC credit cards? If not, you're missing out on features like Spend Analyzer. These tools help you track and categorize your spending habits, making it easier to manage your finances.
  5. Access interest-free periods
    Consider taking out multiple credit cards if you're having trouble catching up with interest. It gives you funds to transfer and pay off existing balances, effectively reducing or eliminating the interest accrued on your outstanding balances.

    Instead of facing steep penalties and late fees for missing a payment on one card, you could pay it off with another. This strategy lets you focus on paying the second credit without the pressure of the first.
  6. Decrease fraud susceptibility
    Cybercrime and identity theft are constant threats among card owners. Fortunately, holding multiple credit cards can minimize the impact of unauthorized transactions on your account. If a fraudster compromises one of your cards, you can quickly close it without jeopardizing other accounts and financial assets. You'll also have backup cards if you have to close one due to fraud.

    Most credit card issuers also offer robust fraud detection measures, like real-time transaction monitoring, suspicious activity alerts, and liability protection against unauthorized charges.
  7. Lower credit utilization ratio
    Your credit utilization ratio represents how much credit you use compared to your total limit across your cards. A low figure shows creditors that you're financially responsible by spending significantly less than your maximum capacity. Having multiple cards helps lower your ratio but not your spending habits.

    Let's say your total credit limit across two cards is ₱100,000. Spending ₱10,000 every month means your utilization ratio would be 10%. However, if you were to open a third card with a ₱50,000 limit (for a total of ₱150,000) and continue spending the same amount, your ratio would decrease to 6.66%.
  8. Take advantage of brand-specific offers
    Many credit card issuers partner with retailers, airlines, hotels, and other businesses to reward cardholders for purchases. When you take out more cards, you can choose those aligning with your favorite brands or expenses to take advantage of exclusive offers.

    Cards that focus on travel miles and overseas spending also have travel-specific perks. RCBC Visa Platinum is the perfect companion for regular travelers. Meanwhile, JCB Platinum is ideal for those who frequently visit Japan. Getting both is best if you often travel to Japan and other countries.

Maximize Your Credit Card Opportunities

Multiple credit card ownership offers numerous benefits that can boost your money management strategies and open doors to new financial opportunities. That said, use this tactic wisely. Make smart decisions on how you use each card to avoid disrupting your financial stability and maximize its benefits in the long term.

If you're considering securing multiple credit cards to optimize your finances, look no further than RCBC Credit. Our vast array of RCBC Credit Cards come with budget management features to help you take control of your finances and have peace of mind knowing your financial health is secure.

Interested? Contact us to learn more!

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