The question based on how many credit cards should i have? Is a vital one which a lot of people ask, and what type of credit cards should you have? The answer is based on individual and likely to evolve with your finances, spending, knowledge, and credit offers.
What is Credit Card?
The word credit card can be described as a payment card issued to users to allow the card-holder to reward a merchant for goods and services related to cardholders’ pledge to the card issuer to pay for the amounts with the other agreed charges.
Either you have more than eight cards, you can’t take everything with you. But if you have ever spent your way into a massive pile of credit card debt, then your answer might be “no” to how many credit cards should I have?.
There are pros and cons of having more than one credit card. The problem is that most individuals can agree that having many credit cards can help or hamper your credit score, depending on how well you manage them.
About 377 million open credit card accounts in the U.S. in 2020, and other reports we gathered show that almost two in three Americans own at least one credit card.
Everyone has their way of doing things, as some prefer to live without any credit cards so that they don’t spend cash they don’t have. Others can do pretty well with a single card that pays cash back, or maybe two cards.
Is it Good to have Many Credit Cards?
How many credit cards should I have? The common concern is what we said above, but it can assist your credit tally by making it more easier to keep your debt utilization ratio low when you have multiple credit cards.
A high utilization ratio will impair your credit score, and it may not seem fair at all, and that where credit scores are concerned.
But to increase your credit score, many credit experts suggest that you avoid using more than 30% of your credit card at any given time.
If you can’t afford multiple cards can affect and even having two credit cards can be one too many for you; if you are paying the bills, it can be challenging; if you don’t plan to use it for some purpose, then you don’t need it.
There are a lot of benefits attached with having multiple cards, but it can only be possible if you manage them responsibly.