1, 2, 3, 4 or 5, how many credit cards should one keep in one's purse? Has RBI made any rules?

Whenever there is talk of credit cards, a question that comes up in the minds of many people is Why do you keep more than one credit card. Anyway, different types of benefits are available on different cards. In such a situation, why do all the work with just one card? However, a big question arises here: more than one is fine, but how many cards can one keep at most? Let us know and understand whether there is any rule of the Reserve Bank (RBI Rule) regarding keeping cards.

Does the RBI have any rules?

Not! The Reserve Bank of India has no rule regarding how many credit cards a person can keep. You can keep as many credit cards as you want. There is no restriction on keeping credit cards.

Then, how many credit cards can you keep?

Before giving a credit card, every bank checks how many credit cards you have, what your CIBIL score is, and how you use them. In such a situation, one thing is certain: if your income is low, you will not be able to get many credit cards. But if you earn good money, then you will not have a shortage of credit cards, and you can keep as many credit cards as you want.

So, should you keep more credit cards or not?

Here, more credit cards do not mean 2-4 cards, but 8-10 or even more cards. Many people often keep many credit cards from different banks. Most people think that this will increase their credit limit. The thinking is correct; this will increase the limit, but money management can be difficult. In such a situation, sometimes you may delay paying the bill or you may forget it, due to which you may be charged heavy interest.

The card will only increase expenses, not income.

While applying for credit cards one after the other, people often forget that this will neither increase their income nor their spending power. On the contrary, this will only increase expenses, which will increase your debt. Many people keep many different credit cards, thinking that they will get offers on different cards during various sales, and they will benefit from it. In this, you have to keep in mind that there should not be any annual charge on the card, otherwise the loss due to the annual charge will not be as much as you will benefit from the discount in the sale.

Do not take credit cards for the sake of a balance transfer.

Some people keep more cards for the sake of the balance transfer feature, i.e., to pay from one card to another. Remember, this means that you are taking a loan from another credit card to pay off the loan of one credit card. This means that your debt will increase further, making it more difficult for you to repay.

Do not keep more than 2-4 credit cards.
Keeping more credit cards always becomes a cause of trouble. If you do not want to let your expenses get out of control, then do not keep more than 2-4 credit cards. You should also take these cards after seeing where you spend more. Like there is a separate card for movies, a separate one for petrol, a separate one for shopping, and a separate one for food. If you buy a card according to your expenses, you will be able to avail yourself of more benefits.

Credit card users should keep these 8 things in mind.

You should know how to use a credit card and what the charges are on it. Every credit card user should know these 8 things about it. If you want to save yourself from pocket cuts, then credit card users should keep these 8 things in mind.

1- Annual charge on the card
An annual charge is levied on most credit cards. Some offer an exemption on shopping up to a certain limit.

2- Interest on credit card dues
If the payment is not made by the due date, a huge interest of up to 36-48 percent can be charged on the credit card dues.

3- Loss of withdrawing cash
Do not withdraw cash from a credit card under any circumstances. Heavy interest starts being charged on its cash from the very first day.

4- Be careful of surcharges
There is a surcharge on filling fuel using a credit card. Most companies refund it. Please check with your company.

5- Be careful in overseas transactions
Shopping can be done abroad using a credit card, but first, know the charges levied on it.

6- Use less credit limit
Credit limit should not be used more than 30-50 percent, as it has a bad effect on CIBIL.

7- Avoid the hassle of minimum dues
Despite paying the minimum dues, a huge interest is charged on your outstanding amount, so always pay the full bill.

8- Use less balance transfer
A bill for another card can be paid through a balance transfer, but its excessive use spoils CIBIL.

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