I am currently having two life time free credit cards. These cards do not charge any annual fees. And another bank is offering me such credit card. I was thinking if I should go for it as
- its rare to get truly life time free credit cards.
- Many credit cards advertise free, but they are actually free only for first year with fees getting waived after some fixed amount of transactions after first year
- I am not heavy user of credit cards, but definitely moderate user. So with life time free cards, I dont have to worry about whether required amount of transaction is done or not in order to get credit card fees waived (I am not yet paying bills for say electricity, home etc since I am still bachelor and still living with parents)
- I am getting these due to my current job which is from reputed company. If I switch my company, I may no longer get such offers
- I will get chance to use offers on different credit cards that are available on different e commerce sites
However I dont know exact rule of thumb of good or bad credit card practice. Honestly I feel its ok to have as many number of credit cards as possible as long as you can manage them. For me it involves automatic credit card payment enabled. So I always use one fixed card as my primary and rest of them only when there is any e commerce offer on that particular card and I have something in my wishlist. So I always pay credit card dues within time.
Is my strategy correct? Especially because I read certain online articles saying things like high number of credit cards reduce your credit score etc?
Ok I forgot to add some of my personal financial facts as requested in comments.
- I live in India
- I have zero debts
- I have one credit card which I use as primary credit card. Since I do most of my transactions on this card, I get annual fees waived.
- I have two more life time free credit cards.