Is Having Multiple Credit Cards Good or Bad in India?

Hi, I’m Er. Adesh Saxena, an engineer who turned into a finance blogger because of a life-changing experience. Today, I want to share a deeply personal experience with you all. In 2020, I suddenly lost over ₹1 crore. It was a huge shock that affected not just my finances but also my personal and professional life.

That moment made me realize how important financial knowledge is. I didn’t want to feel helpless again, so I decided to learn from India’s top finance experts. What I learned changed my life, and now, I want to share those lessons with you—so you can secure your finance future and avoid the mistakes I made.

To rebuild my finances, I studied wealth-building strategies from world-famous finance and money management gurus, including:

📖 Robert Kiyosaki – Rich Dad Poor Dad
📖 Tony Robbins – Unshakeable
📖 Dave Ramsey – The Total Money Makeover
📖 Ramit Sethi – I Will Teach You to Be Rich

These lessons helped me recover from my mistakes and build a strong foundation for financial success. But one mistake that took me years to fix? Misusing multiple credit cards!

Is Having Multiple Credit Cards a Smart Financial Move?

Have you ever applied for a new credit card just because of the cashback offers and rewards? I did. And guess what? It became one of the biggest financial mistakes I made.

At one point, I had six credit cards—one for travel, another for shopping, one for fuel, and more. I thought I was being smart by using the best card for each purchase. But soon, managing multiple bills became a nightmare.

Late fees, missed payments, and a dropping CIBIL score—I went through it all. That’s when I realized: having multiple credit cards can be both a blessing and a curse. It all depends on how you manage them.

Let’s break it down.

Why Do People Have Multiple Credit Cards?

You might be thinking—why do people even need more than one credit card? Well, here are some common reasons:

✔ Higher Credit Limit – Having multiple cards increases your total available credit, reducing your credit utilization ratio.
✔ Better Rewards & Cashback – Travel cards for flights, shopping cards for online purchases, and fuel cards for petrol/diesel.
✔ Emergency Backup – If one card doesn’t work, you have another option.
✔ Improving Credit Score – Using multiple cards wisely can boost your CIBIL score over time.

But does having multiple credit cards always work in your favor?

My Personal Struggle with Multiple Credit Cards

I remember a time when I forgot to pay the minimum amount due on one of my credit cards. I thought, “It’s just one payment, how bad could it be?”

Well, within two months, my CIBIL score dropped by over 50 points. On top of that, I was charged a late fee, interest, and even a penalty for exceeding my limit on another card.

I realized that having multiple credit cards wasn’t the problem—mismanaging them was.

That’s when I decided to fix my mistakes. I set up reminders, automated my payments, and even closed two cards that I wasn’t using. Slowly, my score improved, and I regained financial control.

Does Having Multiple Credit Cards Affect Your CIBIL Score?

The simple answer is YES, but it depends on how you use them!

Your CIBIL score (or credit score) is a number between 300 and 900 that determines your financial credibility. If you misuse multiple credit cards, it can hurt your score.

How Multiple Credit Cards Can Affect Your CIBIL Score:

✔ Credit Utilization Ratio – Using more than 30% of your total limit can lower your score.
✔ Payment History – Missing even one payment can significantly impact your credit score.
✔ Credit Age – Older credit cards help your score. If you keep switching cards, it reduces your credit history length.
✔ Hard Inquiries – Every time you apply for a new card, lenders check your credit history. Too many applications can lower your score.

So, if you can manage multiple cards responsibly, they won’t harm your CIBIL score. But if you struggle with timely payments, it’s better to keep fewer cards.

Pros of Having Multiple Credit Cards

If you use them wisely, multiple credit cards can be beneficial:

1. More Credit Means a Better Credit Score

I learned this the hard way. When I started keeping my credit utilization below 30%, my score improved.

2. Access to Better Rewards & Cashback

Many people use different credit cards for different expenses:
✔ Travel Cards – Earn free flights and lounge access.
✔ Shopping Cards – Extra cashback on Amazon, Flipkart, etc.
✔ Fuel Cards – Save money on petrol/diesel.

3. Financial Backup in Emergencies

Once, I faced an unexpected hospital bill that exceeded my primary card’s limit. Luckily, I had a second card to cover the cost.

Cons of Having Multiple Credit Cards

1. Higher Chances of Overspending

When you have multiple credit cards, it’s easy to lose track of spending. I fell into this trap, swiping different cards without realizing how much debt I was building.

2. Managing Multiple Due Dates is Difficult

If you forget to pay even one bill, it can lead to late fees and a lower CIBIL score. That’s why I now set automatic payments for my bills.

3. Increased Risk of Fraud

More cards mean a higher risk of identity theft or fraud. A friend of mine once lost a credit card, and by the time he realized it, someone had already made multiple transactions!

 Did You Know?

As of 2023, there are 94 million active credit cards in India, with transactions exceeding ₹1.5 lakh crore monthly!

 How to Manage Multiple Credit Cards Wisely?

If you already have multiple credit cards, follow these tips:

✔ Pay Your Bills on Time – Automate payments or set reminders.
✔ Keep Credit Utilization Low – Use only 30-40% of your total credit limit.
✔ Assign Cards for Specific Uses – Travel, shopping, fuel—use cards strategically.
✔ Track Your Spending – Use apps like CRED or your bank’s app to monitor expenses.
✔ Close Unused Cards Carefully – If you close a card, ensure it won’t hurt your credit score.

Final Verdict – Should You Have Multiple Credit Cards?

✅ YES, if you can manage them well. Multiple cards help in emergencies, improve your credit score, and offer great rewards.
❌ NO, if you struggle with financial discipline. If you often miss payments or overspend, multiple cards can trap you in debt.

The key is responsible credit management. If used wisely, multiple credit cards can be a tool for financial growth rather than a burden.

FAQs

1. Does having multiple credit cards affect my CIBIL score?

Yes, if you misuse them. But if managed well, they can improve your score over time.

2. How many credit cards should I have?

It depends on your needs, but 2-3 cards are enough for most people.

3. What is the ideal credit utilization ratio?

Experts recommend keeping it below 30% of your total credit limit.

4. Should I close a credit card if I don’t use it?

Only if it has high fees. Otherwise, keeping it open helps maintain a longer credit history.

5. Can I get a loan if I have multiple credit cards?

Yes, but banks check your total outstanding debt and repayment history before approving a loan.

Conclusion

Now that you know the pros and cons of multiple credit cards, what do you think? Do you own multiple credit cards? Have you faced any challenges in managing them?

I’d love to hear your thoughts—share your experiences in the comments!