I used to think it odd when people would have 3 or more credit cards, especially the generous credit limits provided for these days.

For example, consider having 4 cards, each with a $6,000 credit limit.  That’s a $24,000 line of credit you could borrow in no time.  A 1 month luxury trip to Hawaii could rack up those types of charges.

But, then you’re faced paying down $24,000 in debt with high interest rate attached.

As far as I was concerned, one card with a $6,000 credit limit was and is sufficient for me.

Not having a second credit card could be embarrassing

Imagine taking your folks or friends out for dinner.  You make it clear you’re paying.  At the end of the meal your card is declined.  You look like a financially irresponsible person.  It’s not a good scene.  If you have an extra credit card, sure, it doesn’t look good, but at least you can pay the meal with your second card.

My recent credit card fraud protection incident made it clear to me that there sometimes credit cards are denied for reasons other than not making payments or spending the full credit limit.

I don’t use cash much; instead I rely on credit cards.  If a card is declined for whatever reason, having a second or third card is handy and can get you out of a jam.

3 reasons to have more than 1 credit card

1. It’s handy to have in case the other card is declined for whatever reason (fraud, limit reached, technical difficulties).
2. You get a second card for a strategic purpose.  One strategic purpose is stopping interest accrual if you have a hefty balance.  The way you can stop interest accrual for a set amount of time (usually up to 12 or 15 months) is getting a 0 balance transfer credit card.  I’ve done this for strategic purposes more than once in my adult life and it worked great (I’m a huge believer in 0 balance transfer credit cards).
3. You find a credit card with outstanding rewards such as frequent flyer rewards, hotel rewards, gas rewards (gas rewards are good given the high price of gas these days).

1 reason not to get a second or subsequent credit card

To get more credit because your existing credit card limit is maxed out.

If you have one credit card that isn’t maxed out and is used responsibly, then consider getting a second card because you never know when your sole card may be declined for any reason.