How good is it to have more than one credit card?

2023-04-23 02:01:57

Credit life in Colombia is built through the payment behavior of a person’s obligations, which is why credit cards have become the main mechanism to demonstrate liquidity, through purchase and payment transactions.

It is important to keep in mind that both credit and debit cards are tools that are obtained from financial institutions and that allow money to be moved immediately.

But at this time, where the economic outlook for credit purchases is not encouraging due to changes in interest rates and the significant increase in usury rates, many people wonder if it is worth having several cards, taking into account that these products generate additional payments.

It may interest you: Credit cards: are they used to build credit life?

Is it worth having more than one credit card?

Although credit cards generate interest payments and in most cases a handling fee, Bank of America indicated a series of benefits that customers who have several of these products would have.

1. Save money on interest charges by transferring your credit card balances to a new card with a lower interest rate or a promotional rate
2. Allows you to have an additional backup card when traveling abroad
3. Having multiple credit cards allows you to earn the most rewards offered by these products in different categories
4. You can have a credit card only for online purchases. This can help you keep track of your spending.
5. You can have a backup card if one of your credit cards is lost or stolen

See also: Credit cards: How to choose the one that is best for you?

What happens if you have multiple credit cards?

Credit cards that are in use earn interest, which is no more than the percentage of an additional payment to the amount of debt that the card maintains.

On the other hand, it is important to take into account that in addition to the interest that is additional to the principal, most credit cards generate a handling fee that can be charged even when the financial product is not used. The approximate value of these charges is 35,000 pesos per month.

Also read: Find out which banks do not charge a handling fee in Colombia