You may be surprised, but some people advise to have multiple credit cards in your pocket. According to them, it provides you with several benefits, such as improving your credit history. Let’s discuss it in this article!
Why do I need a credit history?
The first thing you should know about your credit history is that it helps you in getting new loans pretty well. A credit history shows all of your previous loans and describes how honest and responsible you are. That’s why so many banks pay attention to the credit history of any borrower.
The only way you can have a good credit history is taking as many credits, as possible. No need to say that all of them should be closed successfully and in time.
Credit cards are the best tool for building a good credit history. When you receive your card, you get a new loan, which leads to decreasing your overall credit score. At the very same time, when you return your money back, you increase your credit score again, showing how good borrower you are. This gives you an opportunity to get more credits with better interests.
Having multiple credit cards allows you to use them for several purposes. For example, you can use them for paying in different shops, where each of the cards gives you a bigger bonus. Also, it makes easier to control your spendings.
But you should not forget about paying your card back. It’s the main condition for having a good credit history and getting new loans in future. Also, for increasing your credit score, you should use your cards regularly on a monthly basis.