How many credit cards should I have? In having your own credit card, there are different factors that you have to take into consideration. When you shop, pay for your bills and other stuff, it’s definitely more convenient when you have your own credit card instead of paying cash. However, there are also problems, especially if you tend to spend a lot which can resolve in owing more. To avoid having to experience this kind of problem and to make sure that you have a good credit standing, it’s important that you are wise when it comes to choosing your own credit card as there’s no right or wrong answer to how many you should have.
How Many Credit Cards Should I Have
So the question is, how many credit cards should you (I) have? There is really no definite number when it comes to the quantity of credit cards. There are some who have different credit cards since having more credit cards can definitely boost your credit score. However, this has its own risks.
By using multiple cards, you are also at the risk of having to pay for more which may lead to problems in managing your finances.
There are some who would prefer to just have one credit card since they think that is only what fits their lifestyle and their finances. In the United States, every American has three to four credit cards as an average.
There are studies that show there is a positive correlation between having a good and high credit score of about 800 and having credit cards.
It really depends on the which ones you use, especially since there are many factors that need to be considered. In one credit reporting tool, they found out that having a 0 to 5 account is poor while having 6 to 12 is not bad. For those who have 13 to 21, it’s good. Those who have 22 or more, it’s considered to be excellent.
In deciding as to how many credit cards you should have, it actually helps that you make use of various tools like online budgeting programs and read more about financial management and the proper use of a credit card to avoid encountering problems later on.
But according to experts, it’s better to have just three credit cards to boost your credit score. What is important is if you will be able to pay them on time and use them efficiently.
There are disadvantages that are involved in having too many credit cards, apart from the risk of running into financial troubles in the event that you will not be able to pay the cards.
For one, you may not be able to totally control yourself, especially if you’re having a hard time managing your expenses.
The next disadvantage is that having too many cards can be a hassle and difficult to maintain.
Again, it still depends on your credit score and your ability to pay so if you think that you will not be having any problems then by all means you can get as many credit cards as you want to.
Credit Card for Average Credit
Keep in mind that the most important thing in having your own credit card is for you to manage your credit well.
Even if you don’t have a long credit history or if you have been just recovered from a problem which includes years of credit card balances, you may need to be able to prove that you can be trusted with a certain line of credit until such a time that you will become more financially responsible.
Never actually buy credit cards that offer average credit. This is the best offer for you, especially if you’re just beginning to rebuild your credit score.
What is nice with this type of credit card is that they have favorable terms and there is a bigger chance of approval.
When you have your new credit card, you should be able to make small purchases and make sure that you pay them on time.
High Credit Limit Cards
If you are searching for credit cards that can give you excellent credit, you can definitely go for high credit limit cards, especially if you need a lot for your purchases.
In general, companies offering this type of credit card do not necessarily require an excellent credit, you just have to pay a certain fee.
What is nice in having this kind of credit card is that you can simplify your expenses.
There is no need for you to split the cost among various cards. That is what is strongly suggested is that you only have one high credit limit card and you can use it to purchase anything or pay your bills.
What Credit Card Should I Get
When it comes to finally deciding as to which type of credit card you want to get and from which company you’ll get your card, you have to carefully consider a wide range of factors.
For example, if you’re in search for a credit card that can give you a high credit limit then you should definitely find that one type of credit card that can give you a bigger credit line.
On the other hand, if you have recently encountered credit problems or if you don’t have enough credit history, you might as well go for a credit card that gives you average credit.
Always remember that when you get your own card you need to factor in your capability to manage and handle your finances, plus your ability to pay them on time to make sure that you have a good credit score.
When it comes to choosing which company, there are several options to choose from. You can choose to get a credit card from HSBC, American Express and a whole lot more.