Exactly how many credit cards you should have
How many credit cards is too much? Here's how to find the magic number for you.
If you want to have a better manager on your expenses and optimize your credit score, you may be wonderingHow many credit cardsYou must have in your portfolio.Unfortunately, there is no crystal or mathematical equation ball that will tell you theperfect Number of credit cards to have. For some people, a credit card is too important and for other people, a handle is right. So how much shouldyou have? Keep reading to learn the exact number of credit cards that are suitable for you and your expense habits. And for more information on how to keep your credit card invoices and your full wallet, learn howThis word you say makes you spend more money.
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1 However many you have, diversify your rewards
Regardless of the number of cards you have, you should not bother you to transport two or more credit cards with the same rewards. What's the point? Instead, focus on cards offering different rewards.
For example, if you have a reward credit card from the airline, think of a Cashback Credit Card to accompany it if you want more. Or what about a gas credit card or a store credit card, such as the target, whichgives you 5% discount on each order just to use the map?
Think about what you will use and do not simply get credit cards to get them. Remember that: Transport two credit cards offering the same rewards only hurting your chances of getting more rewards.
2 Keep only a map (at most) with annual fees
You should never pay annual fees for credit cards unless you offer such benefits that it is worth it. In other words, gain more rewards than theCosts costs? Otherwise, ditch it. Ideally, only pay annual fees on a map - if applicable.
Also, be careful which cards you take in the first place. Closing credit cards is not good for your credit score. It can shorten your credit time or increase your credit usage, which decreases your credit score. But if you pay unnecessarily for an annual tax, it is worth canceling. Just do not get used to that. And if you have regrets on a purchase you have put on your credit card, here isThe new way you can instantly recover your money after a return
3 Stick to a credit card if you recover or again on credit
If you come fromsuffer from bankruptcyOr have just started adulthood, stick to a credit card. It can even be a secure credit card, and it's good.
Get well established. Determine how it works and how you can or can not handle the debt. Once you have understood, apply for an unsecured card. Do not ruin your credit or chances of getting the best credit cards until you know that you are able to handle it. And if you finally got how to manage your money, but you always feel not to feel content, here's howMoney only does your happiness until you win that a lot, the study says.
4 Open a new credit card to reduce your utilization rate
Your use rate is the second largestpart of your credit score. If you spend on your other cards, you would need another card to compensate for sales.
It sounds weird, but the opening of another credit card can help your credit score. Here's why.
Let's say you have two credit cards, each with a limit of $ 2,000, and you have a $ 900 balance on each one. It's a 45% credit ratio. It's too too much. To help your credit score, you need a credit usage ratio of 30% or less.
Opening another credit card will increase your line of credit and decrease your credit usage rate. If you get another card with a $ 2,000 credit limit and you do not use it, your credit usage rate drops to 30% and your credit score can increase.
5 When it is perfectly good to have three or four credit cards
Using a credit card can lead to impressive reward and reward benefits if you are able to use them in a responsible manner. For example, if you buy a monthly budget and you are able to make all your purchases with a credit card and pay them in full every month, credit cards are a great way to put extra money in your poached.
By being strategic with your credit card use, it is perfectly acceptable to have three or four different cards with different reward options. For example, you can have one for the air kilometers and the one that offers a good cash discount. Using both to your advantage, you can easily accumulate free flights and get a good cash back check at the end of the year.
6 When you should not have any cards at all
However, if you are fighting with excessive expenses, a credit card can be your worst enemy. If you have had problems related to the purchase of things when you did not have money, you can fall into the group "You should not have a credit card".
If you can not trust yourself to pay the invoice in full every month or bill what you can pay, avoid credit cards until you can change yourexpenditure habits. Although credit cards can help you create a credit, they can also destroy your credit score if you do not use them responsibly.
If you feel that you need a "just in case of emergency", lock it. Put it in a safe or give it to a family member. If you need peace of mind, knowing that you have a backup if something happens, do it, but do not let it use it.
There is no single answer - all the answers in terms of exactly how many credit cards you should have. You can have one or ten credit cards and be right. It depends on yourfinancial situation and will. Your resulting credit score will depend on your financial responsibility.
It makes no sense in the reward card door if they go wrong with your credit score and costs you thousands of interest. If you manage them correctly, credit cards can be helpful and even profitable if you do the time of your rewards. And for more a good idea to save money, do not miss theseSneaky retailers deceive you to spend too much now.
