It is no longer news that individuals own multiple credit cards. This is a result of the growing popularity of credit cards. With the growing popularity of credit card lenders, people tend to ask for a specific number of credit cards that they can own. There is no static number of credit cards that you should have. But you have to be careful about your credit score.
You have to consider if you can use more than one credit card responsibly or not. If you always pay on time and in full, then you can have as many credit cards as you want. But if you do carry a balance or you do miss your payment deadline, then it’s in your best interest to have just one credit card.
Can you Have Many Credit Cards?
Should you have many credit cards? This question has a two-way answer. It is yes and no. It depends on how you use the credit card. Yes, you can have as many credit cards as you want only if you can handle your credit wisely. No, you should not have many credit cards if you cannot handle your credit wisely.
The specific number of credit cards you should own should be dictated by no one but your financial situation and spending history. It implies that you are free to own as many credit cards as possible. But you have to consider if you can pay off the full balance every month on each card you own.
The truth is that having a lot of credit cards comes with a lot of responsibility. So if you are not sure of your ability to pay your monthly balance, you should abstain from having multiple credit cards. The effect on your credit score should be one of your concerns about having multiple credit cards.
But having more than one credit card can help your credit score by making it easy to keep your credit utilization ratio low. Having multiple credit cards can either help or hinder your credit score. It depends on how well you manage the credit cards. Using many credit cards has its advantages and disadvantages.
- One of the advantages of using a credit card is that it can improve your credit score. Your new credit card will increase your overall credit limit.
- Having multiple credit cards can help you access multiple rewards programs.
- With your multiple credit cards, you can separate your expenses.
- If you are in the market for a home, you will need multiple credit cards.
- When you use too many credit cards, it gives you an oppy to maintain low credit utilization on each of the cards.
- Having too many credit cards can lead to overspending. This is because having multiple cards gives you access to a higher credit limit and this may lead to you using the card to buy things that you do not need.
- When you have too many credit cards, it may make you open to identity theft.
- When you have too many credit cards, it may hurt your score, but if you use the credit card responsibly your score would be boosted.
- Having multiple credit cards means having multiple fees charges on your card.
How Many Credit Card is too Many
It depends on how you use the credit card. How many credit cards you should have is dependent on your goals, your spending habits, and your finance. Sometimes having more than one credit card can be too much if you can not pay all your bills.
On the other hand, having more than one credit card can improve your credit score if managed properly. You are free to have as many cards as possible, but you have to put some things into consideration.
- You need to ask yourself if you are at a stage where you can afford to carry different balances all at once. This is to ensure that you do not get into a situation where you have multiple balances but you do not have enough money to make your payments.
- You need to consider if you have enough experience using a credit card already. If you are new to the whole idea of credit cards, you should stick to one credit card.
- Ask yourself how you can successfully manage many credit cards. You have to look at how well you are managing your card to determine if you need another one.
Rules on Having Credit Card
Irrespective of the number of credit cards you have, they are rules that apply to having credit cards.
- You have to keep your balance low.
- Pay your bills in full.
- Always pay your bills on time, or before the due date.
- Avoid applying for several new credit cards at one time.
These rules apply to everyone who has a credit card.