Is it Wise to Get a Second Credit Card?

Many people have a credit card and they can be useful for paying for items and getting a delay before they have to be paid for as well as offering extra security when buying things online. However, you may consider whether you should have a second card and this is something that you should think about really carefully.

It is wise to always think hard before you take out a loan and applying for a second credit card could be thought about in that sort of way. You will have credit available to you and you need to decide whether it is something that you really need. Some people feel tempted to spend available credit and will buy more things than usual because the money is available to them. Although this is not the case for everyone, it is important to be honest with yourself and think about whether you might be tempted to do this.

It is also good to think about why you are looking for a second card. If you have been offered the card then it is best to turn it down. If it was not something that you were considering then why take it on. It will just create more paperwork for you, decisions when spending as to which card to use and extra accounts to keep a track of. It just adds complication. However, if you are looking for a second card because you feel that you need the money, then this is different.

It is good to think about why you need the extra money and whether getting a credit card to get it is the best way. Credit cards are very expensive unless you pay off the full balance each month. It is much cheaper to use savings, not spend so much money or save up to buy items than to use a credit card and then repay it slowly over time. You may have other options available to you that could be cheaper or easier or both.

It could be easier to ask whether you could increase your credit limit on your current card. This would make it much easier to keep a track on your spending than getting a second card because you will not have to check the balance on more than one. You will also not have to make sure that you pay two bills but just one which should make things a lot easier.

Another option could be to use any savings that you have instead of borrowing money. Although it can feel good to have savings and they earn some interest, they do not earn anything like as much as credit cards cost. You would save a lot of money in interest if you used savings to buy things or pay off the credit card debt rather than having them sitting in an account. If you do not have savings and can wait for the things that you want to buy then it could be best to save up for them. While you are saving the money will be earning interest and you will not have to pay extra when you buy them, compared to the extra costs of buying things on a credit card.

If you do need to borrow money then research other types of borrowing. Compare the costs and see if there are any cheaper ones available. It is always worth doing this before you borrow any money as you could end up saving a significant amount of money. It could be worth asking a financial advisor for help with making a decision as they will know what loans are available to you and what might be the cheapest.

There are circumstances where a second credit card could be useful. However, you need to make sure that you really do need the money and that you will not be tempted to use it to spend more money than you actually need to spend. Make sure that you keep a close eye on what you are spending and make the monthly payments when they are due to avoid excessive charges. Try to pay it off as soon as you can so that the borrowing is as cheap as possible. With a credit card you can pay it back whenever you like, so there is no need to wait until you get a statement.

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