How many credit card should I have

How Many Credit Card Should I have?

How many credit cards should I have? Before you decide on how many cards to have, you need to consider a few factors. First of all, there is something called the “debt to credit ratio”. This can have an impact on your credit scores and you want to make sure that you are having good credit scores.

Secondly, it is important to keep records of how you make payments and how many payments you make each month. This will not be possible if you are keeping more than three credit cards.

Haven established these premises, and here are a few recommendations.

• Do not keep more than three (3) cards at a particular time.
• Keep track of your debt-to-credit ratio and make sure that it is within allowable ranges.
• Thirdly, keep records of your monthly expenditures and ensure that you know exactly how much you are spending each month. This helps you to plan.

To answer the question of how many credit cards to have, you cannot have one answer to it, this is because people have different individual needs.

Haven said that it is an ideal school of thought to not be in possession of more than three different cards. These could be in addition to other types like supermarket cards, students’ cards and more. A point worth noting is that the number of cards one keeps is not as important as how the person uses the card(s) he or she has. Once you are in possession of a card, just ensure that you are able to match up the amount of expenditure you incur each month before thinking of an additional card.

How good is it to keep many credit cards?

There are different types of cards. So keeping different types of credit cards in itself can be a good thing if properly managed. This has to do with usage. For example, if you are a student, you would probably have the opportunity of using a student’s card. If while on campus, you use a supermarket, you are likely to have a card that you would use for shopping. When companies that offer credit facilities observe from a distance that you use various types of cards and your usage is a wise one, they get to know that you have a good comprehension of credit card usage. When one uses different types of cards and they are specialized ones, like travel cards, grocery cards or gas pump cards, it affords the user the opportunity to enjoy some awards like cashbacks, travel opportunities and more.

Can different cards have an effect on the credit score of the user?

Even though not directly, the immediate answer to this question is a yes!

Companies that lend always want to observe that your “credit utilization rate” is not more than thirty per cent (30%). This rate is also called your debt-to-credit ratio.

How many credit cards should I have then?

With all of this at the back of your mind, you must decide how many cards to hold. The question is how many is too many? For a lot of people, even three cards can be too much to manage. Therefore, depending on your situation, you should try not to have more than two (2) or maximum, three (3) cards. So it is not necessarily about the number of cards but how the cards are used in a responsible manner. If you have more than one card, keep the following in mind.

Make sure you watch your balances all the time.

Make sure you are paying various fees on time to avoid penalties.

Whenever possible, ensure that you are taking a look at the report of your credit on a regular basis, this will afford you the chance to know what lending companies are using for their work.

Lastly, you can always check your credit report with my Equifax account. This will afford you the chance to know what is happening to the way you use your cards and to make adjustments where needed.