How many credit cards you should take –
How many credit cards you should take in 2023-2024 You wonder how many credit cards you should use. 2,3,5,7 key unlimited credit card should be used. Will I get notice of income tax if I take more credit card? Taking more credit card has some effect on cibil score. Let us know all this. Let’s see what are the advantages and disadvantages of taking more credit cards.
Do you have more than one credit card? If you’ve ever spent a fortune on a credit card, you probably know the answer.
Withdrawing multiple credit cards can make repaying your loan more sustainable. There is no simple answer to how many credit cards you should have and having more than one credit card can have its advantages and disadvantages.
Most experts agree that having more than one credit card can either help or hinder you, depending on how well you manage your credit score.
Benefit of Multiple Credit cards –
1. Â Every credit card is unique. This means that each credit card has different benefits. If you have more credit cards then you will have credit cards of multiple benefits. For example, which card is best for online, some cards are best for offline, some credit cards are best for fuel and some are best for travel.
If you have only one credit card, you will not be able to avail the benefits of the other benefits, you will be able to avail the same benefits as the benefits of that card.
2. Multiple Cards make you get multiple benefits. Each credit card has a Credit Limit. If you have multiple credit cards, you will get different credit limits from different banks.
This extends your credit limit. If you spend more on credit card then the capping of 30 percent is utilization and it stays under control. If this percentage is not reached then cibil score will not be affected. In an emergency, if more money cards are needed, then multiple cards help. This makes multiple cards beneficial.
3. Experts say that if you have a Six Plus loans mixture, which includes credit cards and loans, then your credit score is best. In this situation credit score increases well and it is easy to get loan and credit card in future.
4. Multiple credit cards offer different benefits with multiple platforms. If you have a single credit card and the another bank is offer on the flipkart and that credit card you don’t have, then you will not get Benefit.
Amazon and Fitpkart have made a bond with a particular bank and kept the benefits like ICICI bank kotak, SBI axis. If you do not have these credit cards and you have only one credit card then you will not be able to avail the benefits of this platform.
Disadvantage of multiple credit cards –
1. Each credit card comes with joining and annual fee. If your credit is not free then you have to pay annual fee every year. Whether you use this card or not, you have to pay annual charge. If you do not want to pay more fees, you should avoid having more credit cards.
2. If multiple cards are close to you, then managing them is a trick. You will have a lot of credit cards and if you pay one of them after due date, you will have to pay a lot of interest. If you can’t forget or remember due date, having multiple credit cards can be risk.
3. With multiple credit cards, the chances of fraud are high. If you do not manage properly, your credit card can be fraudulent and all credit limits can be used. If you do not know how to use a credit card, you should avoid taking multiple credit cards.
4. If you have multiple credit cards, your relatives can take advantage of this. If you have multiple credit cards, you will receive an income tax notice? No income tax notice is issued unless you exceed the credit limit. You don’t even have to pay income tax.
Does having a multiple credit card affect the cibil score –
How many credit cards you should take in 2023-2024 Taking multiple credit cards increases your cibil score as credit limit increases. The utilization is very low so having multiple credit cards has an positive impact on the cibil score. If you immediately apply for another card while having one credit card, you are considered credit hungry and your cibil score is lowered.
This has a mixed effect on the credit score of multiple credit cards. These are the points of good and bad credit card.
Why and how does income tax notice come –
Your credit card is connected to the pan card because the government can keep an eye on your income. When you spend from any credit card, it is reported to the IT department. IT department is reporting to income tax department.
All the financial departments have to submit their statement to the IT department. If you are spending more than Rs. If you are paying more than one lakh dues for a credit card in a month, they will also report the credit card issue to the IT department. This will give you an income tax notice.
How can you avoid income tax notice –
How many credit cards you should take in 2023-2024 Income tax is on top of your income. If you spend on a credit card and you do not earn anything from it, then income tax will not be levied on it. If there is a notice, all you have to do is satisfy them. You spend as much as you need to and you don’t get anything out of it.
When you pay income tax and your financial transaction is more than credit card, even if you spend ten lakhs or five lakhs from credit card in one year, then when you pay income tax, it should mention how much you have spent.
Only when the income tax officer feels suspicious do they send you a notice. You should use credit card carefully. If you have a lot of credit cards, you should use them for limited. Don’t spend over to earn cash back or reward point. You should be able to prove to the income tax office why you were spending this and you have not generated any income on this spend.
This means you don’t have to pay any tax. Credit card is your property so you should use it carefully. Don’t over spend. If you use a credit card for business, you must fill out an income tax return. In this way .
You can read from the income tax notice. In an income tax notice, you just have to justify why you have spent what you have. They will not penalize you.
If you are generating income every year or every month then you have to do ITR. It is not necessary that you have to pay income tax only then you have to fill ITR without paying income tax you can fill your ITR. This keeps the government informed of how much you earn and how much you spend .