Is it good to have 2 credit cards from the same bank?

Should You Have Multiple Credit Cards from the Same Bank?

Maintaining multiple credit cards is a common strategy for managing finances and building credit. However, it’s essential to weigh the pros and cons of having multiple cards from the same bank.

Advantages of Having Multiple Cards from the Same Bank:

• Consolidated billing: All card statements are grouped under one account, making it easier to track spending and avoid late payments.
• Centralized rewards: Some banks offer rewards programs that combine points or miles earned from all cards on a customer’s account.
• Simplified credit management: Having multiple cards from the same bank simplifies credit utilization calculations, which is a key factor in credit scoring.

Disadvantages of Having Multiple Cards from the Same Bank:

• Limited credit history diversity: Using multiple cards from the same bank limits the variety of credit lines and creditors in your credit report, which may not provide a comprehensive picture of your creditworthiness.
• Potential for overspending: Having multiple lines of credit from the same bank can tempt users to overspend, especially if they are not disciplined with their spending habits.
• Less competitive rewards: Some banks offer more lucrative rewards for customers who hold multiple cards, but these rewards may not be as competitive as those offered by other banks.

Diversifying Your Credit:

Financial experts generally recommend diversifying your credit by obtaining cards from different banks and networks. This strategy offers the following benefits:

• Broader credit history: Having credit accounts with various institutions demonstrates your ability to manage debt responsibly, improving your overall credit score.
• Increased rewards potential: Different banks and networks offer varying rewards programs, so having cards from several sources can maximize your earnings.
• Flexibility and backup: In case of lost or stolen cards, having multiple credit lines from different banks ensures you have access to funds and can avoid financial disruptions.

Conclusion:

Whether or not to have multiple credit cards from the same bank depends on individual circumstances and financial goals. If you prioritize consolidated billing and rewards points, having multiple same-bank cards can be beneficial. However, for those seeking to improve their credit diversity and explore competitive rewards, diversifying across different banks and networks is recommended.