There are four benefits of having more than one credit card, and the third one will be especially useful during this festive season sale!

Credit card usage in India is steadily increasing, with spending reaching ₹1.93 lakh crore in July 2025. Therefore, having two credit cards can be a wise move for many. This not only increases reward points and offers but also improves credit scores and financial flexibility.

Credit card spending in India is rapidly increasing. According to the latest data from the Reserve Bank of India (RBI), credit card spending reached ₹1.93 lakh crore in July 2025, compared to ₹1.83 lakh crore in June. This represents an increase of nearly 6% in just one month.

While many people use credit cards wisely, others fall into their trap. If you use credit cards wisely, you can earn even more benefits by having more than one. Let's explore why having multiple credit cards is beneficial.

1- Maximize Reward Points

Different types of credit cards are available for different purposes. The biggest advantage of having two credit cards is reward optimization. One card can be used to pay for everyday expenses like groceries and petrol, where you earn more cashback and reward points. The other card can be used for online shopping, travel, and other larger expenses. If you wish, you can even have multiple credit cards for different purposes, provided you can manage them all.

Sometimes, one card offers airport lounge access, while the other offers dining discounts and travel insurance. If you have two cards, you can combine the benefits of both cards to maximize your benefits.

2- Easy Credit Score Management

A credit score is like a person's financial report card. Having two cards allows you to better manage your limits. This keeps your credit utilization ratio low, and making timely payments strengthens your credit score.

3- Sale Offers, Discounts, and Credit Limit Benefits

No-cost EMIs are often available on many items during online sales. For example, a product worth ₹60,000 is available on a 12-month no-cost EMI. In this case, you only have to pay around ₹5,000 per month, but when you purchase that product, the entire ₹60,000 is blocked from your credit limit. After this, you gradually get your limit back in small amounts with each monthly payment. If you have multiple cards, your overall credit utilization will remain under control.

On the other hand, these sales offer various discounts and offers on different cards. If you have multiple cards, you can get your favorite deals during the sale. However, keep in mind that if you don't manage your credit cards properly, you can quickly fall into a debt trap.

4- Financial Backup

Sometimes, one card may be blocked, lost, or declined. In such a situation, the other card serves as your backup. Additionally, the separate billing cycles of both cards help you manage your expenses and control your cash flow.

There are risks, so be cautious.

There are as many risks as there are benefits. More cards mean more responsibility. Failure to make timely payments could result in significant interest and charges. Furthermore, excessive dependency can land you in a debt trap.

What should you consider before purchasing two cards?

Choose a card based on your needs.

Understand the interest rate and charges for each card.

Keep an eye on the payment due date.

Avoid overspending.

It's best to consult a financial advisor.

Conclusion

Digital spending is growing rapidly in India, and credit cards have become a major part of it. Having two credit cards is no longer just a luxury, but a wise thing to do if you use them responsibly. This not only doubles the benefits but also makes financial security and score management easier.

Frequently Asked Questions (FAQs)

1. What is a credit card?

A credit card is a type of loan card that allows you to spend and later repay the bank.

2. Why is a credit score important?

A credit score indicates your ability to repay a loan and helps you get a loan more easily in the future.

3. Is it okay to have multiple credit cards?

Yes, but only if you make timely payments and don't exceed your limit.

4. What is the credit utilization ratio?

It's the ratio of your utilized credit to your total limit. It's better to keep it low.

5. Can I withdraw cash from a credit card?

Yes, but it incurs immediate interest and charges, so it should be avoided.