Can I get a second credit card?
You can, and having more than one credit card can be a way of boosting your credit score or separating your spending. But it can also make things harder to keep track of and make it more tempting to spend beyond your means. We also mentioned last week the reasons it might be best to avoid a joint credit card, although there can only ever be one account holder.
Reasons to apply for a second credit card:
To build up your credit score
To extend your consumer protection on purchases
To transfer balances and reduce interest payments
To segment your spending or have different types of credit cards for different uses/benefits
Reasons not to:
Missing payments can damage your credit score
It may affect your ability to get credit as lenders may look at the maximum credit you have available (not just what you use on each card)
Temptation to overspend
Potentially harder to keep track of
Tips for applying:
You want to make sure you’ll be accepted for a second card when you apply. You should be using your first one and paying it off on time as this will increase your chances of being accepted for a second, and don’t apply too soon after getting your first card (90 days at least). It can also be a good idea to apply for a second card with the same lender as your first one (although not necessarily for balance transfers) or where you have other kinds of accounts, although don’t apply lots of times in a short space of time. Finally, check your credit score before you apply.
Current best cards:
Credit builder: Virgin Money’s credit builder card has 23.9% APR and a maximum credit limit of £3,500 but it’s only available to households earning £15,000 or more.
Balance transfer: Natwest offers a 0% balance transfer card for 30 months at 23.9% APR with a 2.99% fee, and also a 0% card at 23.9% with no fee but only for 19 months (so you’d need to make sure you could pay it off in that time).
Rewards: Amex Platinum Cashback Everyday has 5% cashback for the first three months if you spend more than £3,000 per year, then ongoing cashback of up to 1%. Sainsbury's Bank Mastercard gives you 8,000 bonus Nectar points (£40) if you spend £400+ at Sainsbury's/Argos in the first two months.
Purchase: MBNA Dual 0% Transfer and Purchase Credit Card has, as it says, 0% interest of transfers and purchases for 22 months. It has an APR of 22.9%.
Action of the week: Send us your finance, money or economics questions by replying to this newsletter, emailing selinandnat@gmail.com or DMing us on Instagram.