Is it safe to have more than one credit card?

6 December2010

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These days, many of us have access to several types of credit. It`s not unusual for someone to have a mortgage, overdraft and credit card at the same time, and some people may have more than that. This can be fine as long as you keep on top of all your payments and don`t have any underlying concerns about your finances.

This is no less true of credit cards - if you have a genuine reason for carrying two or more cards, and you`re able to repay everything you owe, it needn`t be a problem.

However, any debt carries a risk. If you get into financial difficulty, any debt you can`t afford to repay could hold serious consequences - so it`s always worth being cautious about how much debt you take on.

Why might I want more than one credit card?

Different credit cards offer different benefits - so, for example, you might want one credit card for spending (such as a 0% interest credit card) and one to help you repay your debts (such as a 0% balance transfer credit card). Both types of credit card can help you to get more out of your finances, so long as you can genuinely afford to repay the balances on each card.

How careful do I need to be?

If you`re thinking about taking out another credit card because you`ve reached your credit limit on an existing card, you should think twice. Credit cards can carry high interest rates compared with other forms of credit, so if you have reached your limit it`s quite likely that you`ll be paying a lot in interest already, unless you can afford to repay the balance in full before it starts accruing interest.

Taking out and using another card as well would only make your debts bigger - so it might well be a better idea to focus on repaying what you already owe before you start spending again.

After all, carrying more debt on more than one card means you`ll be at more risk of problems if you can`t afford to repay what you owe.

Compare credit card deals with our free credit card comparison tool.

Review our latest credit card best-buys

Product	Transfer rate & period	New Purchases rate & period	Representative APR
Sainsbury's Low Rate Credit Card	- - 0% Fee	- -	6.9% (variable)
	Representative example: With this credit card the representative APR is 6.9% (variable) based on an interest rate of 6.95% (variable), transfer fees of 0% and a credit limit of £1200.
Barclaycard Platinum Simplicity	- - 0% Fee	- -	7.9% (variable)
	Representative example: With this credit card the representative APR is 7.9% (variable) based on an interest rate of 7.9% (variable), transfer fees of 0% and a credit limit of £1200.
NatWest Visa Low Rate Credit Card	2.9% 12 mths 0% Fee	0% 6 mths	9.9% (variable)
	Representative example: With this credit card the representative APR is 9.9% (variable) based on an interest rate of 9.95% (variable), transfer fees of 0% and a credit limit of £1200.
Royal Bank of Scotland Visa Low Rate Credit Card	2.9% 12 mths 0% Fee	0% 6 mths	9.9% (variable)
	Representative example: With this credit card the representative APR is 9.9% (variable) based on an interest rate of 9.95% (variable), transfer fees of 0% and a credit limit of £1200.
MBNA Everyday Credit Card	0% 17 mths 2% Fee	0% 7 mths	11.9% (variable)
	Representative example: With this credit card the representative APR is 11.9% (variable) based on an interest rate of 11.9% (variable), transfer fees of 2% and a credit limit of £1200.
Halifax Online Clarity Credit Card	- - 0% Fee	- -	12.9% (variable)
	Representative example: With this credit card the representative APR is 12.9% (variable) based on an interest rate of 12.95% (variable), transfer fees of 0% and a credit limit of £1200.
MBNA More Rewards Credit Card Account	- - 5% Fee	- -	12.9% (variable)
	Representative example: With this credit card the representative APR is 12.9% (variable) based on an interest rate of 12.9% (variable), transfer fees of 5% and a credit limit of £1200.
MBNA Rate for Life Credit Card	5.9% - 1.5% Fee	- -	16.9% (variable)
	Representative example: With this credit card the representative APR is 16.9% (variable) based on an interest rate of 16.9% (variable), transfer fees of 1.5% and a credit limit of £1200.
We provide a representative range of products on competitive terms and do not act exclusively for any credit provider. Credit limits may vary depending on your circumstances.

Tags: credit cards, more than one, credit card, multiple credit cards, low interest