Hmm! how many credit cards should I have? Researchers say at least two cards are fine, one from each network and from each type of rewards but remember do not have more than you can handle. It is very simple to fill your wallet with different cards for different purposes like the card for airline miles, card for cashback offers, etc. That is great but a lot of options make you confused to decide where to begin from and where to end?
How many credit cards should I have?
- How many cards to have, the answer is completely personal as it varies from person to person.
- Experts advise you to have at least 2 cards each with different networks offering different kinds of rewards.
- Remember there is no one perfect number according to experts, but you should never have more than you can handle.
- To be on the safe side begin with one card, say a secured card, once you are well able to manage with cards, then add a second card to your wallet.
- Though you take 1or2or3or many cards, remember you have to manage that is pay bills on time also remember to include those cards that offer you rewards, cards with no rewards is a waste of time so avoid those cards as they simply occupy space in your wallet.
Is having multiple credit cards is good?
- The major concern of having many cards is the effect on Credit score.
- But having many cards helps you build credit score by keeping the debt utilization ratio low.
- Notice that you should not use more than 30% of the available credit per card at a given time.
- Potential benefits of having multiple cards are pairing of rewards altogether to help you optimize profiting on different categories of spending.
How many cards is too many?
The answer is very simple, the number of cards that you cannot handle is too many.
Various Cards, Various benefits
Many cards may opportunities to gain rewards on every purchase you make. However, many cards with many accounts will sometimes make you forget or miss the payment to clear, in that case, then it will be a loss to your savings. This minor mistake will affect your total profit gain.
Compromised Cards
The credit card company may freeze your card sometimes when they spot some fraudulent activity that your account number might be compromised. In that case, cardholders cannot use the card until they contact the card lender and explain the reason and provide personal info for identity. Even in some worst case, the lender may provide you with a new account number and after that, you may receive the card later in the email. Though it's not a big mistake having many cards sometimes you may lose the card either or may forget to clear the payments. To avoid such situations having a minimum of 2 or 3 cards is recommended.
Yes, you can avail many benefits with many cards, but only when you can be able to manage the, responsibly. Make sure that having many cards with many accounts to be a profit, not a loss. Check every detail of your cards, that is each card offers, credit limits on each account, payment due dates, etc. Utilize every card for your best advantage and maintain your balance low and pay the due before dates to be always on the safer side.