Should You Get an Additional Credit Card?

Opening up a new credit card is, in many ways, similar to buying a car. Each requires a great deal of research and neither should be hastily decided on. There are many reason to signing up for an additional credit card, but a card holder should look at every avenue before they go down this path

During the research process, a prospective credit card holder should look at every single facet of owning a credit card. From the most finite details to general knowledge, a new card holder should know everything and anything about the card. If you already have a card and are looking to open a new one, you should do that exact same research you did for the first go around.

Looking at your finances

Before you even begin to consider getting a second or additional card, you should first look at the state of your finances.Make sure you are financially stable enough to take on the responsibility of a credit card. If you let your spending get out of control, it’s easy to end up in deep debt. Look at what you already pay for bills and make sure you aren’t already overspending on a card. Not being able to pay down the balance each month will impact your credit score.

In addition to looking at your bank account, pull a credit report and see if opening up a new card is right for you. If your credit history is in good standing and you have no negative marks on it, this may be a sign that getting a new credit card is right for you. Opening a new card can also help you improve your score, as long as you keep up with your monthly payments.

Establish credit

Building your credit history and improving your credit score is a gradual process, but getting another card will help you with this process. Simply opening up a new card will not magically improve your score overnight, but certified financial planner Nancy Anderson told LearnVest that maintaining a good payment schedule will help you out.

Opening a new card can also you help bypass spending over 30 percent on any one card.

High interest rates

A high balance can affect your interest rates. If your card has high interest rates, shop around to try to find a card that has low interest rates and no annual fee. Simply switching to a new card because you have high interest rates on the previous one is not a favorable idea, but switching your balance to a card with low rates can help you eliminate your debt in no time.

A high balance can affect your interest rates. If your card has high interest rates, shop around to try to find a card that has low interest rates and no annual fee. Simply switching to a new card because you have high interest rates on the previous one is not a favorable idea, but switching your balance to a card with low rates can help you eliminate your debt in no time.

If you have a card with a large balance you can also transfer the balance to a low interest card. By switching it to a lower interest card, you will be able to pay off the debt faster because generally these cards waive interest payments for an extended period of time. Going this route can better help you plan out your finances, but make sure that this card will help you out down the line, interest payments are only waved off for 15 to 18 months after signing up. Doing a good amount of research for this type of card will help you in the long run.

Credit score is flat

If you have noticed that your credit score has been hovering at the same score over a period of time, it might be a sign that it is time for a new card. Having two cards and maintaining a good payment schedule can help you improve your score, but be warned that that the improvement will not happen overnight. Staying under a certain limit of spending will also improve your state of credit.

Rewards from businesses

If you have enough self control to avoid overspending and pay off the balance regularly, a rewards card may be an option to investigate. Using a rewards card can help you rack up airline miles, get deals on hotels and receive services from other businesses.

Retail card


If you consider yourself a serial shopper, getting a retail card might be a decision you can look into. But, like other cards, you have to be careful not to overspend your balance. Many cards carry a high balance, but as long as you do your research, you will find a card that is right for you.

If you decide that you are ready to take on another credit card, it is important to be 100 percent sure. Your credit score gets knocked down a few points each time a creditor pulls a credit report during the application process, so be sure that this is something you want to do. If you fall into any of these categories, then it might be time to open up a new card.

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