They are shiny pieces of plastic that have great impact to your financial well being. How about taking a look at your wallet to see how many credit cards do you own?
Bill Hardekopf, the CEO at LowCards.com states that there’s no specific number to how many credit cards a person should own. However, some financial pros do advice that one credit card is sufficient.
Let’s break down the schools of thought to help you determine the number of credit cards you should own.
More Credit Cards?
Having multiple cards while being able to pay and manage your balances in full and in time would be a good strategy because you would reap more rewards!
Opening a rewards card can help you get extra bang for your buck. But however, you will likely get rewarded for the type of purchase you often make.
You could also boost your credit card score by simply owning multiple cards. It would positively impact your FICO score by helping you to improve your debt-to-credit utilization ratio or how much debt you have accumulated on your credit cards divided by the credit limit on the sum of your accounts.
The often recommended guideline is to keep this ratio below 30%, although in general, the lower the better.
It is up to you to use your credit card wisely and responsibly
Always remember to keep track of the credit history on your new cards. Also, dont forget, you are entitled to a free copy of your credit card report.
Image Credit: blog.spreedly.com