How many Credit Cards Should you Really Have?
Credit cards are one of life’s great conveniences. They can help with purchases when you are low on cash. They can give you the benefit of rewards such a free travel and cash back dividends. They can also help a growing business. The number of credit cards you may need varies from person to person. It is important to understand all of the rules, fees, and other information regarding any credit card before applying for too many.
Personal Credit Cards for Daily Life
Most businesses today accept credit cards. Whether you have a Visa, Mastercard, Discover card, or American Express, the likelihood of businesses accepting at least one of them is high. It is common for most of us to have at least one of these three. Some people choose to have one of each type of card, so that they know they are always covered when they need to use a credit card. Different cards have different fees, such as yearly membership fees or a higher APR for travel rewards. If you feel that you use these cards regularly and their benefits outweigh the fees, then they are the right cards for you.
How Many is too Many Credit Cards?
If you have outstanding balances or find that you are overwhelmed by too many fees, you may want to look into reducing the number of credit cards you have. You may want to consolidate a few balances from multiple credit cards onto one card so that you save money on your yearly interest rates. Also, if you don’t need more than a few credit cards, it may be wise to just use a couple of cards and pay off all the balances on the cards you won’t be using. Keep in mind to not close those accounts if you’ve had good history with the accounts as the longer you’ve been with the account the better your credit history looks.
The number of credit cards you may have is a personal choice. If you use them responsibly and keep your balances down, they can provide you with convenience and benefits. Always know the rules, fees, and regulations associated with any card you have before using it.