Can you have two credit cards from the same company?
Yes, you can have more than one credit card from the same company. It's not only possible, but it can be a great way to deepen your relationship with one specific bank and take advantage of their card rewards and benefits.
However, if you decide to apply for a second card with the same credit card issuer, there are a few things you'll want to consider. In this article we'll cover:
- Is it smart to have two credit cards from the same bank?
- What are the benefits of having two credit cards from the same bank?
- What are some reasons not to have two credit cards from the same bank?
- How do you manage two credit cards?
Is it smart to have two credit cards from the same bank?
If there is a second card from the same bank that complements the rewards or perks you're missing in your first card, it may be wise to go ahead and stick with the same company. You may be able to pair the two cards together to boost the potential rewards you can earn.
Furthermore, you may have started a relationship with a bank at a time when you didn't qualify for some of the premium rewards. After you've consistently made payments on your first card over several years, you may find that you now qualify for a card with a lower APR, higher credit limit and more perks.
Additionally, you'll find that credit card features and benefits change over time, as well as your lifestyle and preferences. You may find a second card makes sense for a recent life change or to take advantage of a new card feature that was not offered before.
What are the benefits of having multiple credit cards from the same company?
Regardless of the financial institution they're from, it's a good idea to have at least two credit cards. That way, if one is lost or stolen, you still have access to credit for necessities.
That being said, in certain cases, there are several benefits to both of those cards being from the same company.
You can maximize the rewards program
In recent years, credit card issuers have been launching their own rewards programs where cardmembers can have multiple cards that all earn points on the same program. This way, you don't have to pick an airline or hotel chain and sign up for their individual credit cards, earning points in silos.
Now you may be able to combine your points from multiple cards and pool them together to redeem for a travel experience—not specific to any one airline or hotel.
This means that if you have more than one card from your bank, you can really maximize the rewards program.
Use two cards with complementary features
It takes a bit of strategizing, but some banks may have two complementary cards that work in harmony with your spending habits and lifestyle. For example:
You could use a cash back credit card for all your daily purchases and a travel rewards card for travel-related expenses.
If you're planning a big purchase in the near future, you can make that purchase with a card that has a 0% introductory APR, then use a second card that offers cash back for your everyday spending.
Improve your credit utilization ratio
Having more than one credit card increases your credit limit, which helps lower your credit utilization as long as you pay off your monthly balance. This is because it raises the amount of credit available to you. If you consistently keep your credit utilization ratio below 30%, it may improve your credit score. For more information about factors that contribute to your credit score, enroll in Chase Credit Journey®, a free online tool where you can regularly check your credit score.
Simplify your finances
It can be challenging to keep track of all your bills and personal finances. When all your credit cards are with the same bank, you can manage these bills all in one place. Learn just one app, one login and password and one interface to navigate. Review your balances and make payments without jumping from place to place.
This is also true when it comes to understanding a rewards program and knowing how and where to redeem your points.
Build a long-term relationship with the bank
Being loyal to one bank and cultivating a long-term relationship with them can be beneficial in the long term. Many people begin their relationship by opening a checking account as a teenager and learning to use a debit card wisely. It's a natural next step to open a credit card with that same bank.
Over time, trust is developed. Your bank sees that you pay your credit card bills on time and they begin to trust you. This may mean you are offered a higher credit limit over time or perhaps more favorable terms on a personal loan because they know your history of creditworthiness.
Vice versa, you begin to trust your bank to help you meet your financial goals. Over time, your bank may be able to identify opportunities that help you advance your financial status.
What are some reasons to get credit cards from different banks?
Despite all the advantages mentioned above, there are several downsides to consider if you stick with the same bank for multiple credit cards.
No balance transfers
A balance transfer allows you to move the outstanding credit card balance from one credit card to another credit card with a lower interest rate. If your current credit card has a high interest rate and you are trying to pay down your credit card balance, transferring to a lower interest rate card can help you reduce your monthly charges.
That being said, you generally won't be able to transfer balances between two cards from the same bank.
Mistakes may stand out
If you have repeatedly missed payments, there's a possibility that the bank could increase your annual percentage rate. In addition, it may be harder to get approved for a future credit card or loan with that bank.
You may miss out on diversified features and benefits
If you stick with one card issuer, you may miss out on the different features, benefits and partner relationships that other card issuers offer their cardmembers. Make sure you don't have two cards with a lot of overlapping benefits. To maximize the perks, you want two cards that cover a diverse array of features. Often this means having cards from two different financial institutions.
What happens when you have two credit cards to manage?
With two credit cards comes more responsibility. You must be able to manage both and pay off the balances each month.
Even if you have two credit cards from the same bank, you may still have different payment due dates, different interest rates and different minimum payments.
Paying on time is the most important thing you can do. Many people find that setting up automatic payments helps prevent them from accidentally missing a due date.
Another helpful tip for managing multiple credit cards is to keep tabs on your credit utilization ratio. This helps you gauge how much of your available credit is being used. You'll want to aim for anything below 30%.
To calculate your utilization ratio, add up the total available credit line on both cards, then divide by the total balance you owe. If it's higher than 30%, consider paying off more of your balance.
If you enjoy the rewards program offered by a specific bank, then it is perfectly fine to have an additional card with them. Especially if you have cultivated a long-term relationship with that bank.
If you find that you have two cards with redundant features, then you may want to consider applying for a card at a different bank and utilize a more diverse list of benefits.
With so many reward credit cards on the market across many banks, you should be able to find two cards that work strategically together and fit your lifestyle.
Just remember that the most important thing about any credit card is to keep up with your monthly payments. This is more important than the credit card company that you choose.