Multiple Credit Cards: A Trap for Your Finances and Credit Score

• Banks offer 'Pre Approved' credit cards with rewards, leading many to accumulate multiple cards.
• While perceived as beneficial for rewards and emergencies, managing multiple cards often leads to financial difficulties.
• New cards cause 'High Enquiry' and increase total credit limit, leading to higher credit utilization which negatively impacts credit score.
• Using multiple cards can push overall credit utilization above 30%, severely damaging your credit score.
• Managing different billing cycles, due dates, and interest rates for multiple cards is complex, risking late fees and credit history damage.

Why It Matters: Multiple credit cards can severely damage your credit score and lead to financial mismanagement.