It’s a familiar proven fact that credit card companies will provide most any person a credit card. Really, companies want to provide credit cards to Americans who otherwise can not get them, says Steve Rhode, president of Myvesta, in a Bankrate.Com file. However, does that suggest Americans should have as many as possible? How many credit cards is too many?
So, How Many Credit Cards Is Too Many?
Some credit specialists will say that there is no set amount of credit cards that is too much. All of it depends upon your ability to repay the credit used. However, the more charge you have, the greater your probability of incurring more debt and destroying your credit score.
Anybody can be tempted to get a charge card at their favorite store if it offers them 10% off their buy. However, think twice before signing up. Having these extra cards can be risky and easily lead you to add to your balances unless you intend to pay them off instantly.
Many Americans retain credit cards to pay for emergencies. Although, if a payment is missed on any of these, then the late charges can be insurmountable. If this sounds familiar, then it’s time to rethink how many cards are truly needed for emergencies.
Steve Bucci, a debt consultant for Bankrate.Com, proposes that you should have no more than two to six cards. And also you should always pay them off on time and often. This will also make sure that cardholders will have the funds for actual emergencies.
If you have multiple credit cards, it is integral to keep your debt ratio down. One more solution to keep a low credit to debt ratio is to spread the expense of bigger purchases over a few credit accounts. Use wisely, they’re purported to be a privilege, not a financial setback