Is it good to have two credit cards? 5 advantages you should know

In today’s rapidly changing nation, owning two credit cards can even be considered a prudent strategy. This becomes increasingly important with the surge in credit card spending in the country over the past few months.

The total credit card spending in value terms jumped around 6% in July 2025 as it hit ₹1.93 lakh crore in comparison to ₹1.83 lakh crore in June, reveals the latest data released by the Reserve Bank of India (RBI). The corresponding figure for July 2024 stood at ₹1.72 lakh crore, reflecting a 12% jump in the card spending in the past year.

Benefits of owning two credit cards

I. Broader reward optimisation: You can use one credit card for categories like groceries that offer cashback, while the second credit card can be used for online shopping, travel, or meeting other needs. This must be done so that maximum reward points and benefits can be extracted from both. This can help with better reward optimisation and boosting benefits.

II. Improved credit score management: A credit score is a three-digit number, like an individual's financial report card. Efficient credit score management is essential to ensure seamless credit card usage. You can raise your credit limit on two cards, which will help lower your credit utilisation ratio. Showcasing responsible repayment can help in better credit score management.

III. Greater financial flexibility and backup: Your second credit card can act as a backup if one card is lost, blocked, or declined. Different billing cycles help manage cash flows prudently by staggering payment dates. Check spending on discretionary and essential items to keep a tab on expenses. This way, your credit cards can provide greater financial flexibility and backup.

IV. Access to diverse benefits: You can also plan, write down, and combine lifestyle perks such as airport lounge access, dining discounts, and travel insurance from two credit cards. You can also make the most of exclusive partner offers, such as hotel or airline loyalty program benefits on different cards. You can also design a more comprehensive insurance coverage by pooling benefits from both credit cards.

V. Segmented spending and enhanced security: To ensure you never miss due dates, you can use your primary credit card for meeting daily expenses. Whereas the secondary credit card can be utilised for high-value or risk transactions. Such a practice can limit the chances of fraud by confining online transactions to one card. It also facilitates better tracking of expenses.

Before applying for a new credit card, aspiring applicants should weigh the associated pros and cons. Credit cards have several risks, such as high interest, debt traps, hidden charges, the possibility of fraud, and the impact on credit scores. Always opt for a new credit card after proper guidance from financial advisors.

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Disclaimer: Mint has a tie-up with fintechs to provide credit; you will need to share your information if you apply. These tie-ups do not influence our editorial content. This article only intends to educate and spread awareness about credit needs like loans, credit cards, and credit scores. Mint does not promote or encourage taking credit, as it comes with risks such as high interest rates, hidden charges, etc. We advise investors to discuss with certified experts before taking any credit.