How many credit cards should you kept? Answer this Question here

Having more than one credit card increases your chances of spending and falling into a debt trap. Also, having more than one card reduce your credit utilization ratio for each card.

You should have a credit card that matches your spending pattern. For example, if you do more online shopping then a shopping card will be right for you.

With this, you will get many benefits like offers, cashback. If you use your vehicle to go to office, then it would be better for you to have a co-branded fuel card.

If you are taking a credit card for the first time, then you should prefer Visa or MasterCard. You can also avail cashback and reward points on these cards.

The advantage of multiple credit cards is that you have a higher credit limit. If one lakh is two then you have a 2 lakh limit card

However, it is important to keep in mind that having more than one card reduces your credit utilization ratio for each card.

Remember that your credit utilization ratio should not exceed 30 per cent of the available credit limit. Crossing this limit can affect your credit score.