Published on 09/3/2008

In addition to having a joint spouse credit card, there are occasions when you may want to have extra credit cards for rewards or other perks. Submit your good or bad credit card application online.

Extra and Joint Spouse Credit Card Accounts

Just as a joint spouse credit card account is convenient, often other extra credit cards can also be a benefit. Here are tips on when you may want to have multiple credit card accounts.

First, let's review common reasons why many people don't want more than one credit card account:

Worry over lack of self-control and running up high credit card debt. Tip: If you cannot control spending urges, maybe you shouldn't have even just one credit card.
Concern about remembering to pay the monthly bill for each. Tip: You can use our free bill reminder software to help you.
Fear of future credit rejection due to having multiple credit cards. Tip: Actually, the higher the available credit limit you have, the better your credit score. Hence, having more than one credit card account won't in itself result in further credit rejection. But how well you manage those accounts, indeed could. You can get a credit card to rebuild credit.

Now, let's examine benefits of having extra credit card accounts:

Financial Safety Net: Although falling behind on bills is a major cause of mountainous debt, what would you do if you lost employment or suffered exhorbitant, unexpected expenses, and your one-and-only credit card account is already maxed out? What if your home burns down, all your cash, checkbooks, credit card, etc, were lost in the fire? Although you could get a new card and checkbook issued, how long will you have to wait? What if you were robbed while travelling out of town? What if fraud; or suspected fraud, caused your credit card account to be blocked from further transactions during the investigation period? Tip: Keep one credit card with a zero balance in a safe location, and use that card as an emergency loan resource.
Financial Security Strategy: Some credit card purchases are indeed considered 'risky'. For example, online purchases through a questionable website. Tip: Use one credit card strictly for high risk purchases, so that account can be shut-down immediately in the event of fraud or identity theft whether actual or suspected. Perhaps get a credit card with a low limit which you will repay in full each month.
Perks and Rewards: As credit card companies compete for business, they offer better rewards, perks, and lower interest rates. Tip: Examine your current credit card statement to see which types of products/services you purchase most, and apply for a credit card that offers discounts, cashback or other rewards for those types of purchases. Payoff balances in full each month, because rewards credit cards typically charge higher interest rates than standard unsecured credit cards. Review Terms & Conditions for earning and claiming rewards.
Boost Credit Score: As mentioned earlier, simply having multiple credit cards doesn't make the holder a high risk. In fact, the greater the available line of credit; as well as the older the account, the better the boost to your credit score. Tip: Watch your debt-to-limit ratio. This is the ratio of how much debt you have in relation to your available credit limit. You can get a higher credit score if you have lots of available credit and pay your bills on time. You'll need to keep the accounts active by using them, because many banks are closing idle credit card accounts to save money by not having to generate monthly credit card statements for those accounts. When a credit card account gets closed, the impact will be more severe to someone who just has one or two cards, as opposed to someone who has six to eight credit cards.
Expense Tracking: Some people like to use different credit cards for different purchases. Most noteably, self-employed people may use a business credit card for their professional expenses and a consumer credit card for personal expenses. In addition to expense tracking, it also helps at tax time. Tip: Get a credit card that will itemize expenses into cateogories for you.
No Interest Charges: If you qualify, you could get a 0 introductory credit card that offers no interest charges; for example, for purchases and/or balance transfers the first six months. Tip: Be sure to understand the Terms & Conditions for balance transfers and for which types of purchases and the total allowed. Bad credit people won't qualify for a high limit 0 introductory credit card.

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