Payments through the mode of credit cards is an idea that haS never enjoyed widespread acceptance. While some see it as a doorway to debt traps and careless spending, others see it as a blessing for their financial security and flexibility. In order to be “safe,” people who naively accept the hearsay and biased perspectives of the former group frequently opt to only have one or two credit cards or at worst, totally refrain from applying for and using credit cards.
However, such people are unaware that how you ultimately use Axis bank myzone credit card
and manage your payments will ultimately determine the role credit cards play in your life!
So let’s get started and understand the benefits and drawbacks of having several credit cards, as well as whether doing so is a good idea or not for your financial health:
Should you maintain multiple credit cards?
Your ideal credit card holding capacity will depend on key factors like your spending habits and frequency. Having multiple credit cards from the same or different issuers has several advantages, including better rewards on spending across cards based on their reward point accumulation programmes, spreading out expenses over the month in accordance with each Axis bank Aura credit card‘s interest-free period, acting as a backup in the event that the primary card is lost or stolen, and last but not least, improving your credit score when CUR is maintained below 30% mark.
But if you’re considering getting one or applying for another one, keep in mind that responsible Axis bank myzone credit card use and repayment are the keys to maximising the plethora of benefits they hold. By doing this, you can ensure that the advantages always outweigh the drawbacks. Because they run the risk of overspending and accruing credit card debt, people with a lack of financial discipline and multiple credit cards are more likely to get caught in debt traps.
When applying for your next card, how do you pick the best one?
Anyone considering applying for a credit card should think about their spending habits as well as weigh the advantages and disadvantages of the various credit cards that are available. Consider getting a travel credit card, which offers better benefits on travel-related expenses, if you frequently spend more money on travel and hotel stays than other expenses like shopping or dining out.
“Getting started with points and miles” is much beneficent as Credit cards often provide sign-up bonuses, giving you a large number of points or miles after you meet certain spending requirements within a specific time frame.
When performing a comparative cost-benefit analysis, carefully consider all of the card benefits before selecting the one with benefits that vastly outweigh its annual fee. Keep in mind that many credit cards also give you the option to waive or reverse joining or annual fees when spending on the Axis bank Aura credit card exceeds a certain amount.
Advantages of having multiple credit cards
-The potential for more overall benefits
Axis bank myzone credit card issuers typically design credit card reward point programmes in accordance with the set target of consumers due to the different usage and spending patterns of various consumer segments with varying habits, lifestyles, incomes, locations, etc.
As an illustration, credit card companies provide a category of travel credit cards for frequent travellers. In addition to free lounge access, air miles, numerous hotel vouchers, and increased reward points on travel-related purchases, these cards offer additional benefits. Therefore, having two or more credit cards may be advantageous for those who frequently spend a lot of money on various categories such as travel, fuel, shopping, etc.
-Reduces CUR to help raise credit score
Having two or more credit cards reduces your credit utilisation ratio, which is the percentage of your total credit limit that you as the user are actually using. Watch your Axis bank Aura credit card spending, keep it to 30% of the total credit limit, and make timely, full payments on all debts. Credit bureaus tend to reduce your credit score when your CUR exceeds 30%. All of this can improve and maintain your credit score.
-Gives the window to maximise interest free period
The time between the date of a credit card transaction and the due date for that billing cycle is known as the interest-free period. Except for cash withdrawals made with a credit card, there is no interest assessed on Axis bank myzone credit card transactions during this period, provided the entire balance is paid by the due date. Depending on the date of the credit card transaction, this period typically ranges from 18 to 55 days for the majority of credit card issuers (s). When using two or more credit cards, users can maximise the length of their interest-free periods by splitting planned purchases, particularly large ones, among their cards according to how much time is left on each one. When the due date comes, you will have more time to pay them back as a result.
-Serves as a backup in the event one of your other cards is lost
It would probably take a few days before you could get a new replacement card if your primary Axis bank Aura credit card—the one you use the most—were ever stolen or lost. In these situations, having two or more cards can help you spread out your spending across the cards you have access to, maintaining both your liquidity and your purchasing power. Therefore, if you are only permitted to have one credit card, apply for one as soon as possible to start enjoying the many advantages of having two or more.
Adverse effects of having multiple credit cards
-Can lead to careless spending
Because most credit card issuers frequently use lucrative discounts and other offers to entice customers to spend throughout the entire year, those with poor money management skills run the risk of going over their budgets in order to take advantage of these discounts and offers.
-Next Axis bank myzone credit card application can pull down your credit score temporarily
Each time you apply for a credit card, the concerned credit card issuer/lender fetches your credit report after receiving your new credit card application to assess your creditworthiness. Your score may temporarily drop as a result of these lender-initiated credit report inquiries, but this effect will pass quickly. All you need to focus on the prudent use of Axis bank Aura credit card and on-time repayment, as it can help you gradually improve your credit score over time.
