It is important to have not only a credit card, rather credit cards these days!
The simple fact is, you miss out on great opportunities in life if you don’t use credit cards.
So where is the big deal, you ask? You should be wise in managing your credit cards. Don't get lost and drained in paying off your balances.
This post will not deal with the traditional questions surrounding credit card debt.
It will answer the questions related to, when taking out a second credit card is good for you!
A second credit card won’t be good for you if your personal DTI ratio gets ditched:
All credit users have their own distinct Debt-To-Income ratio!
This D-T-I ratio will determine a portion of your credit score! It makes up 30% of your total credit score!
So, you will have to maintain a good DTI ratio. Or else the second credit card will bring down your credit score, and decrease your credit standing.
Say, your income is $5000 per month.
Your total outstanding balance on revolving credit is $2000.
Then your D-T-I ratio is 2000/5000, that equals to 40%.
The ideal ratio percentage should not cross 30%.Hence take out another credit card only if it doesn't become a burden.
It should also not increase your DTI ratio!
A second credit card won’t harm you if the payments don’t interfere with your other monthly bills:
Only take up responsibilities that you will be able to fulfill. Credit cards come with the responsibility of periodic payments.
A second credit card can be very beneficial to you, only if it doesn't pose to be a problem.
Close your previous card if it's of no use. There's no point in having two cards only for the sake of having!
Again you can talk to your creditors or respective bank, to see if they can change your existing card’s limit or rate.
If the creditor agrees to do so, then you might give your second card a second thought!
At the end of the day, what matters are the monthly payments.
If you are able to cope up with them, then another card will actually turn out to be good for you!
A second chance credit card is good for you if you want to improve your credit portfolio:
# What is a second chance credit card?
It's like another normal or traditional credit card. Only that it will act as a second chance to improve your credit history.
You should use it to prove that you can handle credits responsibly!
# How will the second chance credit card help you?
You should use this card to increase your credit score and develop better credit habits. Prove to the institutions that you are good at handling credits!
So, leave behind the past and see how you can improve the future with the help of second chance credit cards.
What should you keep in mind before you take out another credit card?
- Get rid of previous credit card debt:
Never ever head out for another card when you already have an existing debt burden. Try to get out of existing credit card debt, and then apply for a new one.
- Only you can judge if this new card will be helpful:
Take out a card only if you find it to be useful. If one card is enough to cater your needs, then it’s better to skip your ideas of having another card.
