New Delhi, Sept. 10 -- If you have been using your credit card prudently by paying all dues on time and maintaining the right CUR (Credit Utilisation Ratio), then it may be the ideal time to opt for a second credit card. You can get a second credit card if you are sure about your repayment capabilities. Here is a guide on the benefits of a second credit card, precautions to be taken, and when you should get it.

A second credit card, when managed efficiently, will help improve your credit score. It is good proof that you can manage your debts well. Having more than one credit card actually helps you in keeping your credit utilisation ratio low. For instance, if you have a credit card with a credit limit of Rs.4 lakh in a billing cycle and...