Amidst all these, credit cards do provide many advantages. However, the higher interest rate on default or late payment charges makes it a risky proposition. Hence, unless you track you transaction regularly and are very punctual on bill payments, limit your credit card usage.

Suppose if you own a VISA card, that suffices all your needs but many shops, and restaurants don’t accept VISA cards and they might ask for a MasterCard. You then go ahead and take a MasterCard. But then the sizzler shop down the lane does not take either, he wants an AMEX card. Will you take one? Some people will!

Even though, there is no limit to the number of credit cards a person can own, you should know to draw the line at a certain point. To make matters worse, there are specialized credit cards for entertainment, dining, flying, petrol and many more. Both the VISA and MasterCard will generally satisfy all your requirements. If they don’t, check whether you can use cash or some other mode of payment. Signing up for a third card might not really be the right option.

Most of the facilities that credit cards provide can also be effectively taken care of by a debit card and that too with fewer burdens. Hence a combination of the two cards can serve your purpose.