Home Manage MoneyBuild your Credit How Many Credit Cards Do You Really Need?

How Many Credit Cards Do You Really Need?

by Jhoana Shaynne

The new world of cashless payments is dawning.  Almost all societies and markets are geared towards purchases without using a physical tender.  Although credit cards have been around for some time, it is probably one of the most used legal exchanges when purchasing.

The question remains: Is having one enough or should I have more?  Once you have been approved of a credit card, it almost seems that all credit card companies have an invisible database of people with good credit coupled with contact information.  Soon, you will receive calls offering more credit opportunities through these cards.

Well, there is no definite answer to how many credit cards you should have in your wallet.  It all depends on three things:

  1. Financial goals and objectives
  2. Ability to manage credit responsibly
  3. Spending behavior and self-control

Now, if you think that you have the three mentioned, then say “yes” to another credit card.  If you seem to be falling short in one of these factors, you need to think considerably.  Financial goals must be clear.

“How much do you plan to delay for next month to give in to present financial constraint?” – is just one question that you may want to answer.

What is the purpose of using credit might be another?  Moreover, you must be responsible for managing your credit.  Paying in full for the month’s due date indicates that you are an accountable credit payer.  Paying on time and the right amount is a plus.

If you can draw the line on things that you need and purchases that are not essential, then you can opt to have more cards.  Some people work best with 1 to 3 cards, yet some can juggle 10 and still be successful in handling them.  Since it all depends upon the holders, let us take a quick look at issues to consider if you are choosing to have lesser and more credit cards.

Multiple Cards

Different cards have different perks and rewards.  You might want to maximize these rewards by having different cards for unusual spending.  One card might have better travel perks and another card more shopping rewards.  You can also use different cards for the various expense line.

You can have a credit card for personal use and another for business.  When you have multiple credit cards, you can keep your credit utilization low.   This means it can be reflected in your credit history that you are not always in need of using your credit card because you can use another in lieu.

When you have proper credit utilization, you will have a good credit score.  For apparent reasons, having another credit card as a back-up when a card gets compromised, held, or stolen will not delay your supposed transactions and purchases.

However, if poorly managed, you will be faced with many credit obligations that would be difficult to control.  Poor credit standing will prohibit you from applying for essential loans like a mortgage or car loans.

Limit Your Number of Cards

Lesser cards mean you can easily manage your spending and payments.  You can have the time to check your expense by item.  When you see the flow clearly, you can be aware of the amount that will post on due date so that you can prepare for it.  With only a few statements to review, you can keep your debt at bay check.

You can make simple financial decisions at the onset.  If you are wary of “hard inquiries” in the future, maintaining a small number of credit cards will save yours from that.  Note that if you are not experienced to manage a credit card and if you do not have the luxury of time to understand how credit cards works, having many cards is not advisable.

These issues will help you in determining if you need more credit cards on not.  The important thing is not the number of cards but how to use them.  Usage will leave lasting marks on your credit and financial standings.

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