Biggest benefits to having multiple credit cards

09-12-2016 | Dojo |

Many consumers are hesitant to open up multiple cards.

They don’t want to worry about losing a card, forgetting to make a monthly payment or hurting their credit score.

What they don’t realize is that credit cards offer amazing benefits. The more cards you open, the more perks you can access. Here are some of the most important rewards you can get from opening multiple cards.

Easy Access to Credit

If you run into a financial emergency, having multiple credit cards can help you get through the crisis.

You can split a big medical bill onto more than one card or use one credit card to pay for your emergency car repair and a different one to manage your household expenses.

Having access to this type of credit prevents you from having to suffer high fees and interest from short-term options like car title loans or payday lenders.

Multiple Reward Options

One of the best things about having a wallet full of credit cards is all of the different reward programs you can access.

Here are just a few of the reward options you could use your cards for:

  • Maximize your cashback, now the most popular reward options, with rotating categories like gas or department stores.
  • Earn double points on eating out.
  • Enjoy free checked luggage with airline-branded cards.
  • Skip the rental car insurance with a credit card that offers insurance.

Increase Your Credit Score

To prove that you’re a trustworthy consumer, you need access to large amounts of credit.

Having multiple credit cards means you’ll have a large credit limit.

If you don’t maximize your cards every month, you’ll build up your credit score over time. That’s because credit utilization, or the amount of available credit you’re not using, is a large factor in your overall score.

Protect Your Purchases

Buying a big-ticket item only to see it drop in price a few days later is a disappointing feeling. If you make those purchases with a credit card, you can take advantage of price protection options. This lets you get a refund for the difference between what you paid and the new price. Each card will only allow you to do this once or twice per year, so multiple cards ensure all of your major purchases are protected.

Earn Free Vacations

Opening new credit cards gets you access to amazing sign-up bonuses. Airline cards offer tens of thousands of frequent flyer miles, enough for multiple round-trip flights, to new cardholders. Luxury hotel lines like Hyatt or Hilton will give you two free nights at any of their properties when you open a credit card with them. Some cards, like Chase’s Sapphire Plus or Citi’s ThankYou Premiere, give you points you can redeem with any airline, hotel chain or rental car company.

There is a catch – you must spend a certain amount on your card within 3 months – but you can usually hit that limit with your normal purchases. The more cards you have, the more free travel perks you can access.

Don’t be afraid to apply for a few extra credit cards. You’ll be protecting your family from financial emergencies, maximizing your rewards and improving your credit.

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