| Overview: Managing more than one credit card can either improve or harm your CIBIL score depending on usage. Proper repayment history, credit utilisation, and discipline help maintain a healthy score, while missed payments and overspending can negatively affect it. The impact depends more on behaviour than on the number of cards. |
The Truth About Multiple Credit Cards and CIBIL Score
In India, credit cards are widely used to build a credit history. As per reports, nearly 35% of a CIBIL score is based on repayment history, while 30% relates to credit exposure. This means that whether you hold one or five cards, your repayment behaviour and credit utilisation ratio play a greater role in shaping your credit card CIBIL score.
Many people fear that simply having multiple credit cards impacts CIBIL negatively, but this is a misconception. Used wisely, having more than one card can even benefit your financial profile.
How is CIBIL Score Calculated?
Your CIBIL score ranges from 300 to 900 and is influenced by:
| Factor | Weightage | Impact Example |
| Repayment history | 35% | Missing an EMI drops score quickly |
| Credit utilisation ratio | 30% | Spending ₹50,000 out of ₹1,00,000 limit = 50% utilisation |
| Length of credit history | 15% | Older accounts boost stability |
| Credit mix | 10% | Balanced mix of secured & unsecured loans preferred |
| Number of enquiries (hard checks) | 10% | Too many applications lower score |
| Key Point: Multiple credit cards impact CIBIL only if you misuse them by overspending, delaying payments, or applying frequently. |
Benefits of Having Multiple Credit Cards
Having more than one credit card can actually work in your favour, provided you manage them responsibly and avoid overspending.
- Higher Credit Limit: Several cards increase your overall limit, helping maintain a low utilisation ratio.
- Better Rewards: Each card may offer unique cashback, discounts, or reward points.
- Emergency Backup: Having an extra card ensures financial flexibility during unexpected expenses.
- Credit Profile Diversification: Shows lenders that you can handle multiple credit lines responsibly.
| Important to Know: Holding multiple cards is not risky if bills are paid on time. For example, using a lifetime free credit card along with a premium one helps balance rewards and costs. |
Risks of Multiple Credit Cards
While multiple cards can offer benefits, they also bring challenges that may harm your credit score if not managed wisely.
- Payment Misses: More cards mean more due dates to remember.
- High Utilisation: If you overuse multiple limits, your credit card CIBIL score suffers.
- Annual Fees: Several cards may result in unnecessary charges.
- Hard Enquiries: Frequent applications reduce your score temporarily.
Table: Pros Vs. Cons of Multiple Credit Cards
Before applying for more cards, it’s essential to weigh the advantages against the disadvantages to understand the bigger financial picture.
| Pros | Cons |
| Increased spending power | Greater temptation to overspend |
| Better rewards & offers | Higher annual/maintenance fees |
| Backup in emergencies | Risk of missed due dates |
| Improves utilisation ratio | Hard enquiries if applied frequently |
| Facts to Know: CIBIL does not punish you for the number of cards but for poor repayment. Avoid credit card delinquency at all costs. |
Does Holding Many Cards Lower Your CIBIL Score?
The answer lies in usage:
- No Impact: If you maintain a utilisation ratio below 30% and pay dues before the deadline, your credit card CIBIL score remains strong.
- Negative Impact: Late payments, over-utilisation, and applying for too many cards in a short span make multiple credit cards impact CIBIL adversely.
This proves the number of cards is less critical than your repayment habits.
About The Airtel Axis Bank Credit Card
For those managing multiple cards, choosing the right product matters. The Airtel Axis Bank Credit Card provides up to 25% cashback on Airtel services, along with cashback on utility payments and popular spending categories. When used alongside other cards, it allows you to diversify rewards without straining your credit profile.
Closing Thoughts: Using Multiple Credit Cards the Right Way
Owning several credit cards does not automatically damage your CIBIL score. What matters is consistent repayment, smart utilisation, and avoiding unnecessary applications. By balancing benefits and risks, you can actually improve your financial standing with multiple cards.
For individuals who prefer added value, the Airtel Axis Bank Credit Card offers attractive cashback options while supporting disciplined credit use. It is a practical choice for anyone keen on building a positive CIBIL history. Also, avoid unnecessary credit card charges to keep costs in check.
FAQs
Q1. Does having multiple credit cards impact CIBIL score negatively?
Not directly. Your repayment behaviour and credit utilisation determine whether multiple credit cards impact CIBIL positively or negatively overall.
Q2. What is the ideal number of credit cards for a healthy CIBIL score?
There’s no fixed number. Maintain low utilisation, timely repayments, and balanced usage for a stable credit card CIBIL score.
Q3. How does repayment history affect credit card CIBIL score?
Repayment history is 35% of the score. Timely payments improve the credit card CIBIL score, while late payments reduce it significantly.
Q4. Can closing old credit cards harm CIBIL score?
Yes, closing old cards reduces credit history length, which negatively affects credit card CIBIL scores and overall creditworthiness.
Q5. Does applying for too many cards at once affect CIBIL?
Yes, frequent applications create hard enquiries, reducing the impact of multiple credit cards on CIBIL by showing higher risk to lenders. It’s smarter to avoid repeated credit card applications.
