Since credit cards are such an accessible way to build credit and earn rewards on your everyday spending, it sure is convenient that they're available from so many different companies. This includes big-name banks as well as your neighborhood bank. With so many options, why would you ever bother getting more than one credit card with the same issuer?
Well, doing so can come with some pretty sweet perks. Let's take a look at why you might want multiple credit cards with the same company.
You can earn rewards on different kinds of spending
A given credit card issuer might have multiple card options, but those credit cards won't all earn the same kind or rate of rewards, and they likely won't all be for the same categories. For example, an issuer might have a card that earns 3 points per $1 spent on dining and travel purchases, but a paltry 1 point per $1 for other spending categories.
If you like the company (and its customer service, mobile app, and so on), you might consider opening another card that earns more points for other purchases. Then you can use both and stack rewards. It's unlikely that you'll find one credit card that offers a good rewards rate for every single thing you buy, but having more than one card can help you maximize all your purchases. And when it's time to redeem points (say, to pay for hotel stays on an upcoming vacation), you have more to use.
You can transfer credit limits
One of the cooler perks of having multiple cards with the same issuer is that you can sometimes transfer your credit limits. To give an example, I recently decided to add a third credit card with a particular issuer to my wallet. While I was approved for the card, I was given a very low credit limit, likely because I already had high limits with the two other cards.
I called the card issuer's customer service line and reached a representative who was happy to help me, and ended up taking some of the credit limit from another card and adding it to my new card. This helped me out, as I got the new card with the hope of using it for more of my everyday spending (based on the rewards categories). Now I can use it without easily maxing it out or worrying about my credit utilization on any one card creeping too high (which would have been likely based on my initial credit limit).
You can more easily manage your credit card accounts
Another great perk of having multiple cards with one issuer is the ease of managing those accounts. Think about it -- you can sign into one credit card company's website and have all those accounts in one place. You can see how much you owe and easily make your payments all in one fell swoop. This makes it a lot less likely that you'll forget you owe money on a card and accidentally pay late, or miss a payment altogether (this is decidedly no bueno for your credit score).
If you really like a particular credit card issuer, or wish you had a way to earn more points on all your purchases, see what other cards are offered. Having multiple cards with one issuer can make it easier to earn rewards, move credit limits around, and simplify managing your personal finances.
FAQs
If you have multiple cards with the same issuer, you can maximize your rewards by using different cards for different purchases -- then combine for redemptions. You might be able to transfer credit limits, and having multiple cards with one issuer will make it much easier to manage your bills.
Is it better to have multiple credit cards with the same company? ›
Is it smart to have two credit cards from the same bank? If there is a second card from the same bank that complements the rewards or perks you're missing in your first card, it may be wise to go ahead and stick with the same company. You may be able to pair the two cards together to boost the potential rewards.
Is it a bad idea to apply for multiple credit cards at once? ›
However, it's generally a good idea to space out your applications. While you can apply for multiple credit cards at once, doing so has potential drawbacks – such as a blow to your credit score. As a result, you may have trouble getting approved for an auto loan or mortgage.
Does opening multiple credit cards build credit? ›
Two factors that contribute to your credit score are the number and type of credit accounts. If your goal is to get or maintain a good credit score, two to three credit card accounts, in addition to other types of credit, are generally recommended. This combination may help you improve your credit mix.
Is there a downside to opening too many credit cards? ›
Disadvantages to consider about having multiple cards
If you carry a balance and pay interest, those costs often outweigh the value of rewards and benefits. Also, if you apply for a number of credit cards within a brief period of time, it could negatively impact your credit score, as mentioned earlier.
What is the 5 24 rule for Chase? ›
Many card issuers have criteria for who can qualify for new accounts, but Chase is perhaps the most strict. Chase's 5/24 rule means that you can't be approved for most Chase cards if you've opened five or more personal credit cards (from any card issuer) within the past 24 months.
What are the disadvantages of having multiple credit cards? ›
Easy to overspend: The more lines of credit you have open, the more debt you could accrue. Many hard credit checks: Every time you apply for a new card, your credit score will undergo a hard check (or hard inquiry) by the issuer. Numerous hard checks can impact your credit score.
Is it bad to have a lot of credit cards with zero balance? ›
However, multiple accounts may be difficult to track, resulting in missed payments that lower your credit score. You must decide what you can manage and what will make you appear most desirable. Having too many cards with a zero balance will not improve your credit score. In fact, it can actually hurt it.
How long should I wait between credit card applications? ›
It's a good idea to wait at least six months between credit card applications to protect your credit score and avoid exceeding certain card issuers' restrictions. Several applications submitted within a short time frame could damage your credit score for a period of time.
How many hard inquiries are too many? ›
Since hard inquiries affect your credit score and what is found may even affect approval, you might be wondering: How many inquiries is too many? The answer differs from lender to lender, but most consider six total inquiries on a report at one time to be too many to gain approval for an additional credit card or loan.
So, while there is no absolute number that is considered too many, it's best to only apply for and carry the cards that you need and can justify using based on your credit score, ability to pay balances, and rewards aspirations.
How many credit cards should you have open at once? ›
Key takeaways: There isn't a set number of credit cards you should have, but having less than five credit accounts total can make it more difficult for scoring models to issue you a score and make you less attractive to lenders.
How to get 800 credit score? ›
Making on-time payments to creditors, keeping your credit utilization low, having a long credit history, maintaining a good mix of credit types, and occasionally applying for new credit lines are the factors that can get you into the 800 credit score club.
What is the biggest mistake you can make when using a credit card? ›
Not paying on time
But it's best to always pay at least part of your credit card bill on time. Missing or late credit card payments can have a big impact on your credit score and fees. Credit-scoring companies like FICO® and VantageScore® weigh your payment history as an important factor in your credit score.
Does cancelling a credit card hurt your credit? ›
Closing a credit card can hurt your credit, especially if it's a card you've had for years. An account closure can cause a temporary hit to your credit by increasing your credit utilization, lowering your average age of accounts and possibly limiting your credit mix.
Should I pay off my credit card in full or leave a small balance? ›
If you have a credit card balance, it's typically best to pay it off in full if you can. Carrying a balance can lead to expensive interest charges and growing debt. Plus, using more than 30% of your credit line is likely to have a negative effect on your credit scores.
Does having multiple credit cards affect credit score? ›
Another potential downside of having a large number of cards is that it can make you look risky to lenders and lower your credit score. Even if you have them all paid off, the mere fact that you have a lot of open and available credit lines can make you look like a potential liability to the next lender.
Is 5 credit cards too many? ›
How many credit cards is too many or too few? Credit scoring formulas don't punish you for having too many credit accounts, but you can have too few. Credit bureaus suggest that five or more accounts — which can be a mix of cards and loans — is a reasonable number to build toward over time.
Is it better to pay off one credit card or reduce the balance on two? ›
Interest Rates: Compare the interest rates on both credit cards. If one card has a significantly higher interest rate, it may be more beneficial to focus on paying off that card first. By eliminating the high-interest debt, you can save money on interest payments in the long run.
Should I get multiple cards from the same bank? ›
By having two cards from the same bank, you can maximize your rewards by using each card for its designated category. For example, if one card offers high rewards on travel and the other on dining, you can use them accordingly to maximize your benefits.
