How Many Credit Cards Should You Have?

Credit cards are something that most people these days own. They may have just one or a collection of them. Many people find that they do not want to make online purchases without them as they are more secure and also that they can be a very convenient way of spending money. Some people feel that perhaps it is better not to have a card at all or to limit how many you have.

Probably the main reason for some people feeling there should be a limit on credit cards is the potential to get into a lot of debt. With all credit cards, you can borrow up to your credit limit and then only need to pay back the interest every month, which means that you will have no pressure to repay the debt and it could mean that it will hang around for a very long time. If you get out more cards then you could potentially get lots more debt and actually owe a lot of money but not be repaying any of it. Although some people may see that as a great thing, because they can get lots of things and not have to pay for them, it is worth doing the maths. If you pay interest on a debt for years then it will mean that you are paying a lot more for the items you bought than their ticket price. The longer you leave the card unpaid the more expensive the items are that you bought with it. You will also need to consider that you may want to pay the money back eventually. If you want to get a mortgage, for example, you will need a good credit record and so you will need to reduce or eliminate your debts. If you happen to die with these debts then your family will have to pay them off for you.

Personally deciding on how many credit cards you have, is very much dependent on how you use them. Many people will use their credit card and then pay off the balance in full when required. This means that they pay no interest and just take advantage of the convenience of being able to get interest free credit on their purchases. Having a number of cards to do this could be good, particularly if they offer cashback or loyalty points in shop in certain places. You can choose which ones to use in specific places so that you make the most of them. However, if you tend to see a credit card as a full bank account of money ready to spend, then you need to be more cautious. Getting a new card could mean that you just spend the money on all sorts of luxury things, only pay back the minimum and do not think about the consequences of being in debt. This can lead to all sorts of problems in the future and therefore if you are likely to do this, you should not have too many cards.

Another way of looking at it is to consider the amount you can borrow. If you can borrow more money on a card, than you could afford to pay back in a month, then it could be wise to not get another. As if you spend across two cards, you could potentially spend even more money and may struggle to repay it at the end of the month. If you think this could happen to you, then only have the one card. Otherwise you could keep a check on how much you are spending to make sure it is not unaffordable. If you have an online account it should be easy to check the balance, otherwise you may have to phone your lender to find out.

So there isn’t really a rule with regards to how many you should have, but it is wise to decide for yourself whether you have too many. Consider what you use them for, whether you are paying them back and if you think that you owe too much money. Then you can decide whether you think you should get rid of a card or more or whether you should consider getting more cards.