Multiple Credit Cards: A Trap for Your Finances and Credit Score
Personal Finance
C
CNBC Awaaz•20-01-2026, 14:00
Multiple Credit Cards: A Trap for Your Finances and Credit Score
- •Banks offer 'Pre Approved' credit cards with rewards, leading many to accumulate multiple cards.
- •While perceived as beneficial for rewards and emergencies, managing multiple cards often leads to financial difficulties.
- •New cards cause 'High Enquiry' and increase total credit limit, leading to higher credit utilization which negatively impacts credit score.
- •Using multiple cards can push overall credit utilization above 30%, severely damaging your credit score.
- •Managing different billing cycles, due dates, and interest rates for multiple cards is complex, risking late fees and credit history damage.
Why It Matters: Multiple credit cards can severely damage your credit score and lead to financial mismanagement.
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