Have more than one Axis bank magnus credit card? Keep in mind the pros and cons of it

The idea of using credit cards to make payments has never gained much traction. Some view it as a means of frivolously spending money and accruing debt, while others view it as advantageous to their financial stability and flexibility. That group usually chooses to keep one or two credit cards, or worse, never apply for or use credit cards, in order to be “safe,” based on skewed perceptions and hearsay.

But what these people don’t realise is that Axis bank magnus credit card and payment management ultimately determines your life’s course!

Now let’s examine the advantages and disadvantages of owning multiple credit cards and decide if it makes sense for your financial circumstances to have them:

Is it required to keep more than one credit card?

How much you spend and how frequently you use your credit card will determine how much you can charge on it safely. Having several credit cards from the same or different issuers has many benefits. These include being able to allocate your monthly spending according to the interest-free period of each credit card, having a backup card in case your primary card gets lost or stolen, and—above all—having the ability to improve your credit score as long as your credit utilisation ratio (CUR) does not exceed 30%. Based on their reward point accumulation programmes, which cards offer better rewards for using multiple cards.

However, if you’re thinking about obtaining one or applying for another and checking Axis bank magnus credit card application status, bear in mind that in order to fully benefit from all the features that credit cards offer, you must use and repay them responsibly. You can make sure that the benefits always exceed the disadvantages by doing this. Because they run the risk of overspending and accruing credit card debt, people who have multiple credit cards and poor money management skills are more likely to accumulate debt.

The next time, which credit card are you applying for?

Before applying for a credit card, prospective applicants should consider their spending patterns as well as the benefits and drawbacks of the different credit cards that are offered. If you find that your expenses for travel and lodging are higher than those for eating out and shopping, getting a travel credit card might be a wise choice. In terms of benefits for travel-related costs, these cards are superior.

Make sure to carefully weigh the benefits of each card when doing a comparative cost-benefit analysis, and choose the one where the benefits significantly outweigh the annual fee. Remember that once you spend a certain amount on a number of credit cards, you can opt to reverse or waive annual or joining fees.

Benefits of possessing several credit cards

-The possibility of greater overall advantages

Credit card issuers usually consider the target consumer base when developing Axis bank magnus credit card reward point programmes because different customer segments have different lifestyles, habits, income brackets, and geographic locations.

Credit card companies, for example, offer a travel credit card category for customers who travel frequently. Additional benefits offered by these cards include free lounge access, air miles, multiple hotel vouchers, and bonus reward points on travel-related purchases. Therefore, those who regularly spend a lot of money on different categories like travel, petrol, shopping, etc. may find it advantageous to have two or more credit cards.

Lowers the CUR to improve creditworthiness

Your credit utilisation ratio, or the portion of your total credit limit that you actually use as a user, will decrease if you have multiple credit cards. Don’t use more than 30% of your credit limit when using credit cards, and be sure to pay off all of your debts in full and on time. When your CUR is greater than thirty percent, credit reporting companies typically lower your credit score. Any of these components can assist you in preserving and raising your credit score.

-Provides the opportunity to extend the period of inactivity.

The interest-free period is the interval of time between the date of a credit card transaction and the axis bank credit card billing cycle‘s due date. Except for cash withdrawals made with a credit card, credit card transactions during this time are interest-free provided the full amount is paid by the deadline.

For most credit card issuers (s), this period can vary from 18 to 55 days based on the date of the credit card transaction. If you have multiple credit cards, you can extend the interest-free periods by distributing your planned purchases—especially large ones—across the cards based on the remaining balances on each one. As a result, you will have more time to reimburse them when the payment deadline arrives.

-Acts as a fallback in the event that you misplace any more cards.

It is likely that you won’t receive a replacement credit card for several days if your primary credit card—the one you use the most—is lost or stolen. Having multiple cards can help you spread your spending across the cards you have access to in these situations, protecting your purchasing power and liquidity. Apply for a credit card as soon as you can if you are only allowed to have one in order to start taking advantage of all the benefits that come with having two or more.

Drawbacks of owning several credit cards

-May result in reckless spending

Credit card companies often use their enticing discounts and other promotions as a hook to get users to spend money year-round, so users who are not good with money run the risk of going over their spending limit.

-Your credit score may temporarily decline if you apply for another credit card following this, of which you may have checked Axis bank magnus credit card application status as well. Upon receiving your application, a lender or credit card issuer will check your credit report to assess your creditworthiness for potential future credit card applications. These lender-initiated inquiries into your credit report may cause a temporary decline in your credit score, but this effect will eventually go away. You can gradually raise your credit score over time if you just concentrate on using credit cards responsibly and paying your bills on time and as per your axis bank credit card billing cycle.