For most people, having one credit card is enough to handle. Keeping track of payments on a monthly basis may be a lot of admin for some people to handle. So, the question is, why would you get 2 credit cards with the same bank?
There are a number of benefits that come with getting 2 credit cards with same bank. For instance:
- Getting 2 credit cards from the same bank, especially if the bank offers you a no annual fee card, can also help improve your credit score.
- You get to enjoy having the benefit of a backup credit card
- You can designate different cards for certain kinds of purchases
- Having 2 credit cards with the same bank may be ideal for emergencies
How the process works:
Many credit card issuers will approve you for another one of their credit cards as long as you meet the qualification criteria. Keep in mind that your approval is likely to be based on your current income and credit standing.
If you’ve managed your current credit card well, that may make it easier for you to get approved for the new credit card.
In some instances, you may get approved for a lower interest rate and a higher credit limit. This could work to your advantage, especially if you don’t use the second credit card often. Having a low utilisation ratio could improve your credit rating.
It’s important to keep in mind that payment due dates may differ, as well as the minimum payment amounts, especially if you have different balances and different interest rates.
You generally won’t be able to transfer balances between credit cards from the same bank.
You get to avoid the extra work that comes with applying for a credit card from a different credit card provider.
