December 10, 2025
Thinking of getting another credit card? Having multiple credit isn’t something we should all do. Discover the pros and cons of getting another credit card here.
How many credit cards should someone have? One? Two? Or maybe more? With many Canadians struggling with their finances due to an increase in the cost of living, it can be tempting to add another credit card to our wallet for more financial flexibility.
But is it a good idea to apply for another credit card? While having more than one card can offer flexibility and additional reward benefits, it also comes with potential risks. From overspending to the impact on your credit score, deciding whether to get another credit card requires careful consideration.
Getting a second or third credit card can have some advantages, but that doesn't mean it's the right thing to do. It depends on your own situation. Here are the top three reasons someone might add a credit card.
A new credit card increases your overall credit limit, giving you more spending power. With more available credit, you can manage unexpected expenses easier.
One of the main reasons someone may add a credit card is for the rewards. We all know that basically every credit card comes with unique rewards programs, and if there is one that suits your spending and financial goals, such as free groceries or air travel, it can help.
Getting a new credit card can add to your credit history. Your credit history makes up 15% of your credit score, according to the credit bureau Equifax. If you keep your balances low on a new credit card and pay on time and in full, it can further improve your credit score.
It’s essential to weigh these benefits against the potential risks to ensure it’s the right decision for your situation. There can be some major drawbacks to getting an additional credit card.
While adding a credit card offers some advantages, it also comes with potential downsides that can throw your finances completely off course.
While a new credit card increases your available credit, it can also lead to overspending. The temptation to use the card for unnecessary purchases may result in higher debt, making it harder to stay within your budget.
Carrying a balance on a new credit card can quickly become costly. Credit cards have high-interest rates, which can accumulate rapidly if you don’t pay off the balance in full each month. Over time, interest charges can significantly add to your financial burden.
Opening a new credit card can make your credit score drop temporarily. Credit bureaus mark it as an "inquiry" each time you apply for more credit. Inquiries make up 10% of your credit score, according to Equifax. Applying for a new credit card might show that you're having money problems and could lower your credit score. So, it's important to pay your bills on time when you get a new credit card to help your credit score recover from this drop.
Keeping track of multiple credit cards can become overwhelming. You may struggle to manage due dates, payment amounts, and balances across different accounts, increasing the risk of missed payments and hurting your credit score.
See practical tips for how to handle a maxed out credit card
See what to do if you max out your credit cardAdding a new credit card can often do more harm than good. If any of these situations apply to you, it’s a sign to reconsider before taking on more credit.
Do you find yourself maxing out or often approaching your credit limit on your current credit card(s)? If so, another credit card is not the answer. If you already have significant debt, especially high-interest debt, adding another credit card is likely to make matters worse.
A new credit card doesn’t solve debt problems; it creates more opportunities to overspend and adds to your monthly financial burden.
Do you find yourself often paying just the minimum on your current credit card? Another credit card will likely make your situation even worse.
If you are already struggling to keep up with payments on your current credit card(s) or other financial obligations, taking on a new credit card can add unnecessary stress.
More bills mean more deadlines to remember, and missed payments can quickly pile up. It’s better to concentrate on managing your existing accounts and building a strong payment history before considering another card.
A low credit score or a history of late payments should signal caution when thinking about applying for another credit card. Opening a new account will result in an "inquiry," which will likely lower your score even further.
If you have trouble sticking to a budget, another credit card could lead to even greater financial strain. Having access to more credit can tempt you to overspend, leaving you juggling higher balances and growing interest payments.
If you’re struggling with credit card debt, getting another credit card is not the answer. If you’re looking for a solution to your credit card debt, we can help.
One of the best and most common options to remove unmanageable credit card debt is to file a consumer proposal.
A consumer proposal is a legal agreement between you and your creditors that reduces the amount you owe.
A consumer proposal can reduce the amount you owe by up to 80%.
To file a consumer proposal, you must work with a Licensed Insolvency Trustee as they're the only professionals in Canada legally allowed to file a consumer proposal on your behalf. You cannot file one on your own.
The Licensed Insolvency Trustee will assess your finances to determine a repayment plan that fits your budget. A consumer proposal is created with your unique situation in mind and tailored to it. They aren't cookie-cutter.
Once the proposal is filed, creditors must stop any collection calls, wage garnishments, and legal actions.
One of the greatest advantages of a consumer proposal is that it allows you to keep essential assets like your home and car.
A consumer proposal can last up to five years. During that time, you'll make one affordable payment each month that covers any of the debts that have been included in your consumer proposal.
At the end of the term, any remaining debt is forgiven, and you are declared debt-free.
The federal government regulates Licensed Insolvency Trustees, who must adhere to strict ethical standards and act in your best interests.
At BDO our Licensed Insolvency Trustees take a no-judgment approach to debt. They understand that financial challenges can happen to anyone and are committed to helping you find solutions, not assigning blame. Your first consultation with an LIT is free of charge, giving you the chance to explore your options without pressure or obligation.
Whether it’s through a consumer proposal or another solution, they’ll work with you to create a plan that helps you overcome debt and build a more secure future.
December 10, 2025
Thinking of getting another credit card? Having multiple credit isn’t something we should all do. Discover the pros and cons of getting another credit card here.
