How Many Credit Cards Should I Have? 5 Things to Consider

How Many Credit Cards Should I Have?

The short answer is that it depends. The long answer is a bit more complicated and depends on several factors. However, how many credit cards you should have begins and ends with you, your habits, and your financial situation. How many credit cards should you have? Here are 5 things to consider.

How Will It Affect My Credit?

The first thing you probably think about when it comes to opening new credit card accounts is how having multiple cards will affect your credit and credit score. While it’s true that each new credit card application will result in a hard inquiry and a likely hit to your credit score.

Can I Pay Off My Credit Cards Every Month?

While paying your minimum credit card payments every month is absolutely critical, ideally, you should be able to pay your cards off every month. If you’re only looking to open more credit cards to max them out, then seeking out more credit is a bad idea.

Can I Manage Multiple Credit Cards?

Even if you’re good about paying off your credit card balances every month, the more cards you have, the more difficult it can be to manage them all. One or two credit cards, especially with the same company, are pretty manageable. But, once you open 5, 6, or more different cards, likely with different issuers, it can be a bit harder to track everything and make sure you’re not overstretching yourself.

Do I Need Different Cards for Different Purposes?

Aside from gaining access to more credit, most consider opening up more credit cards to gain access to cards that serve different purposes. Thus, you may want more credit cards to continue earning sign-up bonuses and to earn rewards to different programs, such as your favorite airlines and hotels.

What Should I Do With Cards I Don’t Need or Use?

The last major factor to consider when answering the question “how many credit cards should I have” is what to do with cards you no longer need or use. If the benefits don’t outweigh or mitigate the fees, consider closing the card if it’s not being used. However, consider keeping cards without annual fees in order to extend your credit history.

How Many Credit Cards Should I Have?

The truth is, you can have as many credit cards as you want. Just remember to consider the purpose of the credit cards you’re opening, as well as annual fees and other card benefits that will help you determine whether to keep or discard your cards.

Swipe Up to Learn More about How Many Credit Cards Should I Have?

For More Posts Like This Visit

Money Saved Is Money Earned!