Why it pays to have more than one credit card

September 12, 2007

Whilst you are mainly warned off having more than one credit card for obvious reasons, sometimes it could actually pay off. Providing you use the cards wisely, it can really help to have more than one credit card for more than one thing.

An example of when two credit cards might come in handy is that you have one for UK use and one which you use abroad. With the high, and often hidden, fees that come with using a credit card abroad, ideally you will want to choose one which has the lowest interest rate on foreign usage. So you need to choose a card with a low interest rate especially for use abroad and an ordinary card for use in the UK.

The amount of debt that Britons get into abroad is astonishing and when it can be avoided there is no real excuse for it. The main problem seems to be that we just do not understand how high the charges are for using our cards. You would assume that the charges would be the same as they were at home, but that just isn’t the case.

Banks and other lenders see the summer months in particular, as times when they can put up their charges for foreign use. It is a very lucrative market for them to be in and with consumers not really bothering to check their card fees before they leave, they can get away with it.

So if you would like to save yourself a lot of money, it would be a good idea to look for a credit card with a low foreign usage fee. It may take a while to find a good deal, but generally you should be able to find something to suit your needs. Just remember to only use the card abroad and use your other card for all UK purchases.