Multiple credit cards from the same bank: Is it a wise choice?


Many people find it easy to get multiple credit cards from a single bank. As a matter of fact, it has some great facilities; you can get many rewards by taking multiple credit cards from the same bank. However, it has a flip side to it too.

Same bank: Same problems 

Not every policy of a bank can suit all your needs. Using credit cards is not always smooth; one faces various problems while using them such as, some credit cards of a certain bank may not work in foreign countries. If you have two credit cards from the same bank, these problems apply to all the credit cards you hold from that bank. Thus, using credit cards from different banks can be a better option.

Before you take another card from a new bank, you must understand certain basic rules and terms that come with the new card. You will have to pay some charges and will have to foot different expenses for different credit cards. Understanding all of this is essential.

Annual fees

The second credit card is most likely to be your back up card. Don’t forget that all credit cards come with an annual fee. The fee depends on the facilities that the card offers you. A higher limit card will mean higher fees. If you are going to use the second card as a back up, opt for one which offers privileges that your original card does not.

Credit cycle

Understanding the credit cycle of the new credit card is very important. The credit cycles vary from one bank to another and it is very important that your new card offers a longer credit cycle than your original card. This will maintain the cost balance. Everything depends on the purpose of your use. 

Interest rates     

A new bank charges you a higher interest rate for your credit card than your regular bank. You have to be their client for a certain amount of time before you are eligible for lower interest rate facilities. Missing a credit cycle will also charge you a penalty which is higher than that on the first card. This fact should be considered carefully.


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