Emergencies - Keep an open, unused credit card available for emergency uses only. Store the card in a safe-deposit box or other safe place outside your home as an emergency back-up, in case of a house fire or theft. If there's catastrophe of any sort, your emergency card could provide the funds you need.
Travel Safety - Emergencies happen away from home. Traveling comes with a host of possible pitfalls, especially when venturing outside your own country - language barriers, cultural differences, money exchange issues and technical glitches. Having more than one credit card could be a life-saver if one of your cards is denied or if a card company puts your account on hold because of 'suspicious activity' due to your travel purchases.
Online Security - By having one specific credit card set aside exclusively for all online purchases, you'll be able to monitor the activity and see fraudulent purchases quickly, if you're the victim of identity theft. When more than one card is used for Internet shopping, it's harder to spot unauthorized purchases.
Bigger, Better Rewards - Many reward cards offer bonuses for purchasing specific types of merchandise or for shopping at designated merchants. By using more than one type of reward credit card, you can earn the maximum payback by using the card that will earn the most reward for each specific purchase. Also, many reward cards have a maximum reward limit. In this case, using more than one card allows for multiple opportunities to be rewarded.
Budgeting and Taxes - Using more than one credit card can help keep work and personal expenses separate. Save yourself the hassle of sorting receipts for employee reimbursement by using one credit card specifically for work purchases. Work-related expenses that qualify for a tax deduction will also be easier to pinpoint by using a separate credit card.
Old Accounts Benefits - Closed accounts, regardless of who closes them, may adversely affect your credit score. The impact will be greater for those who have only a few cards. It's best to keep accounts that are in good standing open, put the cards away in a safe place and just stop using them. |
