How to Choose Your Second Credit Card – NerdWallet

loyalty to family and friends matters. loyalty to your first credit wag ? not then much. about 39 % of cardholders reported carrying only one credit card in a 2016 report card from TSYS, a requital process company. But you ’ re not obligated to stick with any credit card through compact and thin. In fact, you ’ re credibly better off if you don ’ metric ton. Getting a second card that fits your spend habits can earn you more rewards or save you on interest.

When to apply

There ’ s no perfect meter to apply for a second recognition card. american samoa long as getting one will save you money and you ‘re not about to apply for a mortgage, you ’ re probably in the clear. But it might be an specially good time to apply if :

  • Your credit has improved. You ‘ll now have access to better recognition card options .
  • Your spend habits have changed. If your batting order offers bonus rewards merely on restaurants, for example, and you no longer dine out much, it might be time for a change .
  • You want more rewards or benefits. Two accredit cards can get you more perks than one .
  • You ’ ra carrying high-interest debt. Moving your debt to a symmetry transfer card can save you money on interest .

To be indisputable, doubling up on your formative won ’ t help in every sheath. If you already have trouble controlling your recognition card outgo or managing your account, opening another card will good add to your problems. But if you think a new card could benefit your bottomland note, start looking.

Find the best card for your credit

Check your score anytime, and NerdWallet will show you which credit cards make the most sense.


What to look for

Getting a second tease that complements your spending habits is key. If you plan on carrying debt, find a card that minimizes the costs of doing thus. Look for one with :

  • 0 % introductory APR. Some 0 % annual share rate periods elongate for a long as 21 months. If you ’ re transferring a libra, try to skip the balance transplant fee, excessively .
  • No annual tip. If you have decent credit, you ‘ll find enough of no-fee options .

If you plan to pay in full moon every month, your pastime rate wo n’t matter. alternatively, look for a card with :

  • high ongoing rewards, such as 1.5 % or 2 % back on every buy. If you already have one of these cards, sign up for one that offers tiered rewards — that is, higher rewards rates in certain categories .
  • Rewards that fit your spend. If you ’ rhenium always on the road, get a travel tease that gives you points or miles. If you aren ’ thymine, go for one with cash back .
  • Side benefits. If you ‘re a frequent traveler, a batting order that provides dislodge see bags or allows you to avoid extraneous transaction fees could save you money .

finally, keeping your inaugural credit card unfold will generally improve your credit. But if you are n’t using that card and it charges an annual fee, or if it ’ s a batten tease and you want your deposit bet on, ask your issuer about converting it to a no-fee or an unguaranteed poster. If those are n’t options, close it.

Should you get a third credit card? … And a fourth?

Two credit cards might be better than one. And a third can boost your rewards rates further. But spreading your purchases over, say, 10 cards ? It might not hurt you, but it credibly won ’ thyroxine avail you much, either — at least not in the farseeing run. The more cards you have, the greater prospect there is that their core benefits will overlap. And applying for cards to get their sign-up bonuses and closing them subsequently might help you rack up rewards, but using a patchwork of different cards on an ongoing footing probably wo n’t. As your solicitation grows, multiple annual fees could eat away at your rewards, and your wallet could become more unmanageable to manage. Keep your credit rating poster collection a lean, think of, benefit-generating machine. Choosing a second base menu that ‘s worthy of a space in your wallet is a big place to start .

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Category : Finance

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