How many credit cards should you have?
Often you find yourself sifting through your wallet and finding too many credit cards. Though it is not possible to come up with an exact number of credit cards one should have, a safe bet would to see that you have only those many cards which you can manage responsibly and which will not affect your credit.
Because the more number of cards you have, the more difficult it becomes to take care of their payments. The number of credit cards should be such that it gives you some flexibility in carrying them without being too overwhelmed.
A sensible approach is to track your credit cards including payment due dates, interest rates and maximum credit limit. This becomes easier if you have no more than 3 cards. Then you do not run the risk of piling up debt and damaging credit because you can split up the expenses among them, trying to keep one or two cards for everyday purchases like groceries etc and one specifically for buying expensive items like computers, furniture etc. This way you do not run the risk of exceeding the credit limit on one single card. Ideally, you should keep your balance low, about less than 30 percent of your credit limit on each card. Also try to make your payments on time because even one late fee can really bring down your credit score thereby increasing the rates on your other credit cards.
Another important thing to remember is not to roll over credit. Because it is very easy to get carried away with the temptation of high credit limits on cards and end up over spending. Then you lose track of the different bills each month and keep putting off the due payments. Before you realize you are close to going bankrupt. The solution is to ensure you pay up on time.
Many cards offer rewards on different types of purchase. Some credit cards offer rewards on groceries and some on utility bills. Some even increase your credit limit if your payments are on time. If you use your cards carefully and sensibly, you can maximize the rewards you earn, resulting in better credit management.
