The only advantage of a credit card is the 45-day grace period to make the minimum payment after purchase. After this period, you are levied a penalty on the remainder of outstanding amount. With too many credit cards at your disposal, the credit card users sometimes rotate money from one card account to another so as to buy the time. But it is, undoubtedly, a recipe for financial disaster, since it effectively means raising a fresh loan to repay the old one.
Having fewer credit cards has as many advantages as are the disadvantages of keeping too many cards. "Having fewer cardswill help: to control your debt, to spend more consciously, in making and managing your payments easier," said Ramalingam K, chief financial planner at Holistic Investment, a Chennai-based financial planning and investment advisory company.On possessing a large number of credit cards, Ramalingam said that the card user can make use of cashback programmes and rewards programme.When a card user has a higher number of cards, s/he gets the flexibility of better debt utilisation. And Ramalingam calls it advantageous so long as you can control your spending and payments.