know RBI rules: Nowadays one person has many different banks credit Having a card has become normal. Some cards offer discounts for shopping, some offer offers for travel, food and other services. In such a situation, many people prefer to have more than one credit card. But the question is what is the maximum number of credit cards a person can have and whether RBI has any rule regarding it or not.
How many credit cards can be kept as per RBI rules
RBI has not set any specific limit on how many credit cards an individual can hold. That is, there is no rule that a person can have only two, three or four credit cards.
However, it does not mean that the bank will give any number of credit cards to the customer. Before issuing a new credit card, the bank evaluates things like the customer’s income, credit history, payment record and existing loans and other liabilities.
What does a bank check before issuing a new credit card?
Suppose a person already has three credit cards and the total credit limit of all three is ₹5 lakh. If he applies for a fourth credit card, the bank may check his income, current credit limit, payment record and other financial obligations.
Based on this assessment, the bank decides whether to approve the application for a new credit card and how much credit limit to grant.
How to use credit limit
If you have four credit cards and their total credit limit is ₹4 lakh, it does not mean that you should spend ₹4 lakh every month. Credit cards should be used according to your income and ability to pay.
If the credit card bill is not paid in full on time, the balance may incur interest and other charges. So it is worth spending only the amount that can be easily paid.
Does having too many credit cards make a credit score worse?
Just having more credit cards doesn’t automatically make a credit score worse. How credit cards are used and whether or not bills are paid on time has a major impact on credit scores.
Having more than one card does not in itself cause a bad credit score if you use credit cards responsibly and make timely payments. However, managing multiple card balances and payment dates properly is essential.