Four things to keep in mind before getting your second credit card

A credit card is a handy tool that most people gladly accept when they open a bank account. But sometimes, there comes need for a second credit card. But before you finally make that application, here are four things to have in your mind, which would either push you towards taking the call or pull you out from making the decision.

What happens when you think of getting a second credit card?

Before settling in for your second credit card, consider these four things to make your life easy.

Increasing responsibility

Jolting your memory to the purpose of a credit card, it basically means you swipe to  make the purchase while the payment is made on behalf of you. With time and paying back the instalments you return the money to the bank. If you have more a second credit card, that only means more dues and bills arriving in your postbox or inbox. You need to be financially organised to take this decision. In case you notice that you are struggling with the first credit card itself, you may want to reconsider your decision of getting a second one.

Why would you want a second credit card?

Before you want to apply for a second credit card, make sure you are confident of the purpose of getting an additional card. Are you seeking more benefits in terms of travel or dining etc? Are you Want to expand your credit limit? Or you are thinking of getting a balance transfer option? Chalk the pros and cons of the basic purpose of your second credit card and when you have the answer to it, make the application.

It affects credit scores

It is recommended that you check your credit scores before applying for the second credit card. If you have a good credit score, then chances are that your application will pass through quickly and you will also get good rewards like low rate of interest or stretched out credit limits.

Review terms and conditions

As is required before taking any decisions, and more so when it comes to financial decisions, you need to review the terms and conditions. Read between the lines and fine prints in order to understand the depth of the service you are opting for. Check the annual fee structure, interest rates and mostly the penalty charges. Keep an eye out for offers and bonus points.

For more updates, join/follow our WhatsApp, Telegram and YouTube channels.