https://www.desidime.com/discussions/disadvantages-of-having-excessive-credit-cards?page=1#post_9000786
It costs you mental peace and makes you spend more.
Disadvantages of having excessive credit cards?
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I currently have 4-5 credit cards. But now I am seeing a lot of offers of LTF credit cards (AU bank, Indusbank, etc).
My question is: What are the disadvantages of keeping too many cards. Is it that I will not be able to close it smoothly? Etc?
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https://www.desidime.com/discussions/disadvantages-of-having-excessive-credit-cards?page=1#post_9000794
https://www.desidime.com/discussions/disadvantages-of-having-excessive-credit-cards?page=1#post_9000818
With every increase in a number of credit card, chances of defaulting the payment increases.
Apart from that I don't see any negative impact of owning too many credit cards.
https://www.desidime.com/discussions/disadvantages-of-having-excessive-credit-cards?page=1#post_9000841
Budhe-Baba wrote:Budhapa expedite ho jata hai.
Disadvantages of having excessive credit cards?
Aisey aisey jagah ke baal .. befortime safed ho jaayenge.. ki aap soch bhi nahin sakte.
Aur kuch jagah👴🏻 ke tou.. chale hee jaayenge (will be lost/gone).
https://www.desidime.com/discussions/disadvantages-of-having-excessive-credit-cards?page=1#post_9000849
https://www.desidime.com/discussions/disadvantages-of-having-excessive-credit-cards?page=1#post_9000851
saurabh1 wrote:😮
Apart from that I don't see 𝐀𝐍𝐘 negative impact of owning too many credit cards.
https://www.desidime.com/discussions/disadvantages-of-having-excessive-credit-cards?page=1#post_9000852
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kiranjyotiradityakulshreshtha wrote:For the first time ever i am seeing an user id which has the complete family list i suppose
https://www.desidime.com/discussions/disadvantages-of-having-excessive-credit-cards?page=1#post_9000861
https://www.desidime.com/discussions/disadvantages-of-having-excessive-credit-cards?page=1#post_9000871
https://www.desidime.com/discussions/disadvantages-of-having-excessive-credit-cards?page=1#post_9000876
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kiranjyotiradityakulshreshtha wrote:Not even a single post from OPs account
https://www.desidime.com/discussions/disadvantages-of-having-excessive-credit-cards?page=1#post_9000881
https://www.desidime.com/discussions/disadvantages-of-having-excessive-credit-cards?page=1#post_9000985
will there be any issue if we have multiple cards but stick to 1 or 2 cards and do not use rest of them for months ?
https://www.desidime.com/discussions/disadvantages-of-having-excessive-credit-cards?page=1#post_9000991
1. The need for a bigger wallet
2. Risk of losing them all at once (too much work to block all of them and get replacements)
3. Need a set-reminder for at least one transaction every 12 months to avoid card closure (all) / conversion to paid (select cards*)
https://www.desidime.com/discussions/disadvantages-of-having-excessive-credit-cards?page=1#post_9001194
saurabh1 wrote:In normal circumstances it is true but I don't think you would want to approach a large value/high profile business venture with a financial background check showing a dozen cc under your name/pan.With every increase in a number of credit card, chances of defaulting the payment increases.
Apart from that I don't see any negative impact of owning too many credit cards.
https://www.desidime.com/discussions/disadvantages-of-having-excessive-credit-cards?page=1#post_9001502
@Budhe-Baba Refer below wording from fellow CC enthusiasts:
- Income to debt ratio goes up substantially. Even if you are not actually using the credit limit, you have the option to. That is red flag for credit card and loan providers to issue you with more cards or loan in future. It's advisable to reduce your unused and open credit lines 6 months before taking any home loan.
- A while ago (around 4 or 5 years ago) when I applied Personal loan in HDFC bank, they checked my Cibil and asked me the following things: You have more limit on your credit cards, which increases your risk ratio. So, if possible call those banks and reduce limit otherwise get reduced loan amount as per bank risk criteria.
- Even if you have a good credit score and credit history, still the high count of credit cards and their high credit limit does impact approval of home loans. The total credit limit to your income ratio shows your credit hungry nature, even if your utilization ratio be low.
- Income to debt ratio goes up substantially. Even if you are not actually using the credit limit, you have the option to. That is red flag for credit card and loan providers to issue you with more cards or loan in future. It's advisable to reduce your unused and open credit lines 6 months before taking any home loan.
- A while ago (around 4 or 5 years ago) when I applied Personal loan in HDFC bank, they checked my Cibil and asked me the following things: You have more limit on your credit cards, which increases your risk ratio. So, if possible call those banks and reduce limit otherwise get reduced loan amount as per bank risk criteria.
- Even if you have a good credit score and credit history, still the high count of credit cards and their high credit limit does impact approval of home loans. The total credit limit to your income ratio shows your credit hungry nature, even if your utilization ratio be low.
https://www.desidime.com/discussions/disadvantages-of-having-excessive-credit-cards?page=1#post_9001546
BlueFlash wrote:This (what you wrote) needs to be pinned.
@Budhe-Baba Refer below wording from fellow CC enthusiasts:
- Income to debt ratio goes up substantially. Even if you are not actually using the credit limit, you have the option to. That is red flag for credit card and loan providers to issue you with more cards or loan in future. It's advisable to reduce your unused and open credit lines 6 months before taking any home loan.
- A while ago (around 4 or 5 years ago) when I applied Personal loan in HDFC bank, they checked my Cibil and asked me the following things: You have more limit on your credit cards, which increases your risk ratio. So, if possible call those banks and reduce limit otherwise get reduced loan amount as per bank risk criteria.
- Even if you have a good credit score and credit history, still the high count of credit cards and their high credit limit does impact approval of home loans. The total credit limit to your income ratio shows your credit hungry nature, even if your utilization ratio be low.
Also the risk of classic debt trap or paying for one card using another.
(Or repaying one loan, by taking another.. too are classic pitfalls, in my view).
The North American culture of living out of cars/ trailers and spending more than the earnings.. has started percolating deep.. in South Asia too.
Thus the moral or social aspects too creep in.
Frugal values run the risk of getting replaced with 'we will cross the bridge when it comes'... or worse.. the 'who cares' (living in the moment) lifestyle.
One of the major pitfalls could be the loss of over-all financial discipline and lack of self-restraint in general.
https://www.desidime.com/discussions/disadvantages-of-having-excessive-credit-cards?page=1#post_9001654
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kiranjyotiradityakulshreshtha wrote:
मेरी आँखों के जादु से अभी तुम कहा वाकिफ हो , हम उसे भी जीना सिखा देते हे जिसे मरने का शौक हो….😉 ...
Male or female 🤔? @kiranjyotiradityakulshreshtha
https://www.desidime.com/discussions/disadvantages-of-having-excessive-credit-cards?page=1#post_9001664
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kiranjyotiradityakulshreshtha wrote:
मेरी आँखों के जादु से अभी तुम कहा वाकिफ हो , हम उसे भी जीना सिखा देते हे जिसे मरने का शौक हो….😉 ...
i won't believe
https://www.desidime.com/discussions/disadvantages-of-having-excessive-credit-cards?page=1#post_9001757
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kiranjyotiradityakulshreshtha wrote:A minority is always there but India will never become US when it comes to credit cards & the biggest evidence of this is all credit card companies in India being forced to roll back/restrict any good cb/reward point card after 1-2 years max due to severe misuse by a significant no. of users.
This (what you wrote) needs to be pinned.
Also how the the classic debt trap or paying for one card using another.
(Or repaying one loan, by taking another.. too are classic pitfalls.. in my view).
The North American culture of living out of cars/ trailers and spending more than the earnings.. has started percolating deep.. in South Asia too.
Thus the moral or social aspects too creep in.
Frugal values run the risk of getting replaced with 'we will cross the bridge when it comes'... or worse.. the 'who cares' (living in the moment) lifestyle.
One of the major pitfalls could be the loss of over-all financial discipline and lack of self-restraint in general.
https://www.desidime.com/discussions/disadvantages-of-having-excessive-credit-cards?page=1#post_9001901
I don’t think there is any harm if you are disciplined and not living hand to mouth. I have 12 credit cards with total limits of around 75 lakhs. I keep applying for and getting new ones as needed. I wouldn’t mind having 25 or even 100 if it helped me. My immediate goal is to take my total credit limit to 1 crore. I never need to apply for a car or home loan and there is no danger of taking on debt as this 75 lakhs total limit is a comparatively small amount for me. So I always pay off any usage no matter how high. Many are not used at all except once in while to keep them active. I don’t carry all with me either. I only carry 4 or 5 frequently used ones. It is all based on utility. Like I have Airtel broadband and mobile and Airtel launched a card with Axis that provides 25% cashback on Airtel payments. Hence I got one more card. SBI came out with cashback crd and I loved the 5% on all online merchants so I got another one. This is how I keep adding new cards.
https://www.desidime.com/discussions/disadvantages-of-having-excessive-credit-cards?page=1#post_9001931
Lobogris wrote:If it is a comparatively small amount then better create a FD of 1 Cr in hdfc bank & directly get their Infinia or same way get magnus from axis card & close all your other cards except ace.I don’t think there is any harm if you are disciplined and not living hand to mouth. I have 12 credit cards with total limits of around 75 lakhs. I keep applying for and getting new ones as needed. I wouldn’t mind having 25 or even 100 if it helped me. My immediate goal is to take my total credit limit to 1 crore. I never need to apply for a car or home loan and there is no danger of taking on debt as this 75 lakhs total limit is a comparatively small amount for me. So I always pay off any usage no matter how high. Many are not used at all except once in while to keep them active. I don’t carry all with me either. I only carry 4 or 5 frequently used ones. It is all based on utility. Like I have Airtel broadband and mobile and Airtel launched a card with Axis that provides 25% cashback on Airtel payments. Hence I got one more card. SBI came out with cashback crd and I loved the 5% on all online merchants so I got another one. This is how I keep adding new cards.
https://www.desidime.com/discussions/disadvantages-of-having-excessive-credit-cards?page=1#post_9001996
https://www.desidime.com/discussions/disadvantages-of-having-excessive-credit-cards?page=1#post_9002019
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caks2006407 wrote:
rich kid has lots of time to manage cards, papa must have already done 10cr fd
Why needless personal attacks? I have worked hard for my own money.
https://www.desidime.com/discussions/disadvantages-of-having-excessive-credit-cards?page=1#post_9002025
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guest_999 wrote:
If it is a comparatively small amount then better create a FD of 1 Cr in hdfc bank & directly get their Infinia or same way get magnus from axis card & close all your other cards except ace.
HDFC has very low interest rates. Now it is somewhat better but till recently you only got around 5.6% from them. So one would lose a lot, something like 2 to 3 lakhs per annum in keeping a 1 crore FD with HDFC vs other banks. In any case, I don't find Infinia useful bow after the devaluation and the annual fee would be too high on it.
https://www.desidime.com/discussions/disadvantages-of-having-excessive-credit-cards?page=1#post_9002027
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Lobogris wrote:Why needless personal attacks? I have worked hard for my own money.
nice to hear that, comment was in lighter vein nothing offending
Edit:accept my apologies, it was unintentional, happy new year😊
Sorry OP for unnecessary disc
@kiranjyotiradityakulshreshtha
Thx for advice, am here on DD for friends not enemies
https://www.desidime.com/discussions/disadvantages-of-having-excessive-credit-cards?page=1#post_9002229
BlueFlash wrote:
@Budhe-Baba Refer below wording from fellow CC enthusiasts:
- Income to debt ratio goes up substantially. Even if you are not actually using the credit limit, you have the option to. That is red flag for credit card and loan providers to issue you with more cards or loan in future. It's advisable to reduce your unused and open credit lines 6 months before taking any home loan.
- A while ago (around 4 or 5 years ago) when I applied Personal loan in HDFC bank, they checked my Cibil and asked me the following things: You have more limit on your credit cards, which increases your risk ratio. So, if possible call those banks and reduce limit otherwise get reduced loan amount as per bank risk criteria.
- Even if you have a good credit score and credit history, still the high count of credit cards and their high credit limit does impact approval of home loans. The total credit limit to your income ratio shows your credit hungry nature, even if your utilization ratio be low.
Shit i increased my icici apay card limit to max of ₹7lac, tried to reset or reduce to 3lac, but it had already taken that value. Can I call bank and reduce it?
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It costs you mental peace and makes you spend more.
- Income to debt ratio goes up substantially. Even if you are not actually using the credit limit, you have the option to. That is red flag for credit card and loan providers to issue you with more cards or loan in future. It's advisable to reduce your unused and open credit lines 6 months before taking any home loan.
- A while ago (around 4 or 5 years ago) when I applied Personal loan in HDFC bank, they checked my Cibil and asked me the following things: You have more limit on your credit cards, which increases your risk ratio. So, if possible call those banks and reduce limit otherwise get reduced loan amount as per bank risk criteria.
- Even if you have a good credit score and credit history, still the high count of credit cards and their high credit limit does impact approval of home loans. The total credit limit to your income ratio shows your credit hungry nature, even if your utilization ratio be low.
Also the risk of classic debt trap or paying for one card using another.
(Or repaying one loan, by taking another.. too are classic pitfalls, in my view).
The North American culture of living out of cars/ trailers and spending more than the earnings.. has started percolating deep.. in South Asia too.
Thus the moral or social aspects too creep in.
Frugal values run the risk of getting replaced with 'we will cross the bridge when it comes'... or worse.. the 'who cares' (living in the moment) lifestyle.
One of the major pitfalls could be the loss of over-all financial discipline and lack of self-restraint in general.