Advantages of Using Multiple Credit Cards

Lenders are much more concerned about the ratio of debt to available credit than to how many cards you use. Here we show several more good reasons why it's a good idea to use more than one credit card: in cases of emergencies, online security benefits, earn faster rewards, maintain the value of older accounts and personal financial benefits.

Multiple Cards for Emergencies
For emergencies, keep an open, unused credit card available, stored in a safe-deposit box or other safe place outside your home, in case of a house fire or theft.

And when venturing out of your own country for travel or business, remember that  is can pose unforeseen problems that may involve a language barrier, cultural differences, money exchange issues and technical glitches. Be sure to have more than one credit card on you when you travel. This will help in emergencies where you are unable to pay for purchases with a card that is denied or when a card company puts your account on hold because they're suspicious of your travel activity.

Online Security Benefits
Designate one specific credit card that is only used for online purchases. This will allow you to monitor all the card activity, recognize fraudulent purchases and help put a stop to identity theft attempts before extensive damage can be done. When more than one credit card is used for Internet shopping, it's harder to spot unauthorized purchases.

Bigger Cash or Points Rewards
Many reward cards offer bonuses for purchasing specific types of merchandise or for shopping at designated merchants. By using more than one type of reward credit card, you can earn the maximum payback by using the card that will earn the most reward for each specific purchase. Many reward cards have a maximum reward limit; by using multiple cards you have more opportunities to maximize your rewards. But always remember that any reward is only an advantage if you pay off the balance each month!

Budget and Taxes Simplified
Using at least two credit cards will help keep work purchases separate from personal purchases. Save the hassle of sorting receipts for employee reimbursement by using one credit card specifically for work purchases. It will also be easier to pinpoint tax deductions when separate cards are used.

Old Accounts Help Sustain Credit Scores
It's strongly advised that you allow credit accounts in good standing to remain open. Closing accounts may have an adverse affect on your credit score; the impact will be greater for those who have only a few cards.

Another great advantage to using more than one credit card is the leverage it may give you when looking to lower the interest rate you're paying. By comparing offers and finding better deals with your current credit card companies, you can easily transfers balances to take advantage of current money saving deal.