So you've been using a credit card for quite some time now. 

You've been taking advantage of the interest-free, short-term loans, and you've been doing so responsibly — paying your dues on time, not overshooting limits, and maintaining a good credit score.

But now you are contemplating getting a new credit card. You want to cash in on additional rewards, win cashbacks, and enjoy exclusive purchase benefits.

It sure is a great idea but when is the right time to get a second card? Is there a checklist you need to tick off before you apply for a new credit card? How many credit cards can one ideally own?

Here's exploring the answers to these questions.

When is the right time to apply for a second credit card?

The short answer? There is no "right" time as such to get a second credit card. It depends on your personal needs; it may be to increase your credit limit, improve credit score, or avail exclusive rewards. 

It should be noted that different credit cards are rewarding in different ways. While some might provide you exclusive discounts at your favorite retail stores others might get you flight tickets for free.

Be that as it may, it's a good idea to apply for a second credit card for:

Lower interest rates

More often than not, first-time credit card users are unaware of interest rates; it's not their priority and they tend to pick the first card made available to them. However, as the market evolves and new credit cards are launched, companies offer lower interests on short-term credit card debts — which can help users manage their finances better. 

More exclusive rewards and attractive benefits

Your first credit card probably has basic features and features. For example, reward points per transaction are low, cashbacks options are few, and you don't have a high spending limit. 

However, it can all change with a second credit card. You can opt for a premium card that offers a range of exclusive benefits. You can leverage your existing card for a higher spending limit and earn higher reward points per payment of bills and utilities.

An improved credit score

If you can manage multiple credit cards responsibly by staying under credit utilization limit and paying off dues in a timely manner, you stand to improve your credit score. Having two credit cards ensures you aren't dependent on one card for funds. This allows you to lower your credit utilization ratio.

Optimized expenditure

It's possible that getting lucrative discounts at your favorite stores was your priority but now you want to save money on traveling and hotels.

There is a wide range of options in credit cards to cater to individuals based on their spending habits. The choice of your second credit card can help here. If you are a frequent traveler, you can opt for a card that provides airline benefits. If you are looking to avail dining benefits, opt for a card that provides exclusive memberships at restaurants or hotels. 

Conclusion

There's a slew of factors to consider before you apply for a second credit card. Are there any specific features or benefits you are looking for — perhaps lower interest rates, higher credit limits or better rewards? Is your spending pattern conducive for a new credit card? Can you responsibly manage debts on multiple credit cards?

A second credit card can be helpful in increasing your credit limit, improving your credit score, and attracting lucrative user benefits. Make the decision wisely!