Nowadays, almost any transaction you have made yourself can be made online without leaving your home. Although it is much more convenient to shop online, it often requires a valid credit card. Can you use two credit cards online?
Why online payments are different
Electronic gift cards are easy to use online because you don’t have to print a paper copy of the gift card or enter a number into your mobile wallet or gift card application to take the gift card to the store. Simply enter the gift card or egift number into the shopping cart on the website and complete the transaction.
Benefits of using a credit card
Online shopping puts you at risk, especially the risk of theft of your information. The biggest problem with using a debit card for purchases is that if the data is stolen, the thief now has access to funds in his checking account.
In turn, the credit card creates a debt that you have to pay back, but does not withdraw money from your checking account without your knowledge.
If your card information is used in a fraudulent way, you may be protected by federal law, but recovering this money to your bank account is a painful and slow process.
Why you should have multiple credit cards
- You can have a separate credit card for online purchases only. This will help you track expenses and allow you to monitor identity theft or fraud.
- You have a backup if one of your credit cards is lost or stolen. It helps to have a second card available if it takes more than a day to get a replacement card.
- You can save money on interest by transferring your credit card balances to a new card that has a lower APRC or promotional rate. Find out more balance transfer tips.
- When traveling abroad, you can have an additional card as a backup. This is helpful if the basic card is not accepted at the travel destination.
- You can be strategic with your rewards. Depending on the different rewards in each offer, you can decide that you want multiple credit cards to get the widest possible rewards in different categories.
Tips for managing multiple credit cards
Remember that having multiple credit cards does not necessarily harm your creditworthiness. Just remember a few simple things to make sure you get the maximum benefit from the cards:
- The most important is payment on time. When tracking multiple cards, online banking can be a helpful tool for managing multiple accounts. Setting automatic payment reminders can help you keep the correct payment deadline. If you’re a Bank of America card customer, learn more about setting up mobile and online banking alerts.
- Don’t use all available credit. Try using no more than 30 percent.
- If you’re new to credit cards, make sure you can manage your first card. Wait for a certain period of time, such as 12 monthly billing cycles, before adding another.