Is a Second Credit Card a Good Idea?

There’s a lot of conflicting news out there about getting a second credit card. Some say that it’s a good idea because it can help your credit scores with Equifax and TransUnion. Others say that it’s not a good idea because it could actually lower your score. After all, the more credit you need, the more lenders and the credit reporting agencies may think you can’t handle your daily expenses. So, what’s the truth? Should you take out a second credit card, or shouldn’t you? It turns out, it depends on what your situation is.

Reasons to Get a Second Credit Card

There are some benefits to getting a second card. These include:

• Improving your credit score: The biggest reason to add another credit card to your pile is to show creditors and lenders that you can responsibly manage more than one card. It will also increase the total amount of credit available to you which, if you leave it unspent, will also help raise your credit score.
• Have a backup in place: If you lose your credit card, the credit card company will get a new one out to you right away, usually within 72 hours. However, if you have an emergency that you have to pay for right away, or you’re traveling, having a second card in your wallet can be a big help.
• Get more benefits: There are many benefits a credit card company might offer in order to get you to sign up for one of their cards. They may offer cashback, Air Miles, or more. The more cards you have, the more you can diversify those benefits and reap benefits just about wherever you go, because you can spread your purchases out between all of your cards.

Although there are many reasons to get a second credit card, there are also many reasons you may not want to.

Reasons Not to Get a Second Credit Card

While there are some benefits to getting a second credit card, there are times when it could hurt you more than it could help. These include:

• When you’re having trouble paying off the credit card you have: If you can’t pay off the credit card you currently have, the chances are that you won’t be able to pay off two of them. Instead, you’ll likely only sink into more debt and find yourself with a lower credit score, and more debt.
• You’re only getting the card for the low introductory rate: There are many things credit card companies will do to get you to apply for their card. One of these is offering a low introductory rate, sometimes as low as zero percent APR. However, these rates don’t stick around forever and soon you might even find yourself with more debt at a higher interest rate than what you are currently paying. Always look at the interest rate once the introductory rate expires, and don’t get pulled in by big promises made by credit card companies.
• You’re considering buying a new home or car: If you plan on taking out a new large loan, such as those for a car or a home, it’s best to hold off on applying for a second credit card. Taking out too much credit at one time, particularly when you already have credit, will lower your credit score. This means that it will make it much harder to get that new home or car.

Once you’ve gone over all the reasons to get a second car, and the reasons not to, you may decide to get a second card. When you do, there are some things you should look for in that new card.

What to Look for in a New Card

You don’t only want to make sure you can get a second card with few worries, you also want to make sure you get a good one so you don’t regret it later down the road. When searching for a new card, make sure to consider:

• Why you’re doing it: First and foremost, you have to consider why you want a new card. Is t because you want cashback, travel points, or a card for emergencies? If these are the reasons you want a new card, you may want to branch out from your current lender and find a credit card company that offers something your lender doesn’t. If all you want is more credit available to you, though, you may want to just go to your lender and ask them to increase the spending limit on your current card.
• The annual fee: Many cards have an annual fee to them and sometimes, they can be as high as $500. Again, you have to compare the annual fee with your spending habits. Will you spend enough to make the most out of those benefits? If not, it’s likely not worth it to apply for a card with a high annual fee.
• Read the fine print: The credit card company may try to woo you with low introductory rates, rewards, and other incentives to ensure that you apply for their card and not a competitor’s. Still, you must fully read all the fine print before signing onto a certain card. Otherwise, you may find yourself regretting the decision to get the second card in the future, and find yourself deeper in debt.

When done right, getting a second credit card could be a great decision that brings many benefits.

When You’re In Debt Too Deep, Call Our Florida Debt Defense Lawyers

Deciding whether or not to get a second credit card is a big decision and one you must weigh carefully. If you’ve already found yourself too deep in debt and are now facing a lawsuit or other legal action, there is help available. At Loan Lawyers, our Fort Lauderdale debt defense lawyer can defend you against any action taken by creditors and give you your best chance of a positive outcome. Call us today at (954) 523-HELP (4357) to schedule your free consultation so we can start reviewing your case.

Loan Lawyers has helped over 5,000 South Florida homeowners and consumers with their debt problems, we have saved over 2,000 homes from foreclosure, eliminated more than $100,000,000 in mortgage principal and consumer debt, and have recovered over $10,000,000 on behalf of our clients due to bank, loan servicer, and debt collector violations. Contact us for a free consultation and find out more about our money-back guarantee on credit card debt buyer lawsuits, and how we may be able to help you.