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Expanding Your Credit Card Portfolio

Building a great line of credit is a matter of baby steps. The first step that any cardholder takes is opening their first credit card. After using their credit card and making on-time payments for more than half a year, they may have the opportunity to get a credit line increase. Eventually, every cardholder will want to have another credit card to expand their purchasing power or for more rewards.

Applying for another credit card is just like applying for your first card, only this time you will have an existing credit score. As you apply for more credit cards, consider what role your new credit card will play in your credit card portfolio.

Your First Credit Card

Even though you will have a new credit card to use, make sure to keep your first one. Closing your first credit card shortens your credit history, which credit bureaus factor in when determining your credit score. A credit bureau will consider you to be a riskier applicant if you have a shorter credit history, thus your credit score will be lower.

Your first credit card can still be used purposefully. The extra credit your first card has can be used in emergencies or when you are in a quick need of extra credit.

Your New Daily Card

The new credit card that you hold will often have a larger credit limit than your last. You will have more purchasing power, so that if you had to, you can make purchases beyond your current budget. Because you have a higher credit limit, interest can accrue at higher volumes. To avoid this from happening, you should continue to practice good credit habits such as paying your balance in full.

Your new credit card may also have better rewards and benefits. You might even apply for multiple credit cards to maximize your rewards.


Getting a new credit card is very much like the time you got your first credit card. Do not forget all of your good credit card habits that you have learned, and eventually, you will be able to maximize your purchasing power and have even more financial freedom.

In the next lesson, learn more about How to Find The Right On Campus Job.


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