A credit card is an instrument which enables the cardholder to borrow money from the bank or the lending institute which issued the card, to carry out digital transactions. For the financial service offered by a lending institution, it charges interest on the use of credit cards.
You may have more than one credit card, depending on financial needs and spending habits. But what is the magic number? How many credit cards does a person actually need? But before understanding how many credit cards a person should have, we need to first discuss how borrowing through a credit card works. Yes, it is critical for you to know this too.
A bank (or any other money-lending platform) approves a cardholder’s loan after assessing creditworthiness. The creditworthiness of a borrower is determined by the evaluation of their credit history and is expressed in terms of credit score, which indicates the probability of a borrower repaying his or her debts. That is, the higher a cardholder’s credit…
