Is It Good To Have Multiple Credit Cards?

 

Having many credit cards is neither good nor harmful. The biggest advantage of having many Credit Cards is that it expands your available credit.

Around 30% of your FICO® score is determined by how much of your total available credit you utilize, so the smaller the proportion of your total available credit, the better for your score. Keeping your spending constant while increasing your available credit will reduce that proportion, which will help your Credit Score Service.

How many credit cards is too many? Can you have too few?



The typical American has four credit cards, so having more than one is not uncommon. However, the number of cards that are appropriate for you is determined by your financial circumstances and aspirations.

Though there are ways to develop credit without using a credit card, if you want to hold one, responsible card use makes it simpler to establish credit. You can't, but on the other hand, get into credit card debt if you don't have one to start with.

Tips for managing multiple credit cards



If you do decide to use numerous credit cards, we offer some advice for handling them that should help you improve your credit while reducing your debt.

  • Spread out your applications: Multiple applications in a short period of time may convey the incorrect impression to lenders. Wait at least six months between applications.
  • Be selective: If you have a good credit history, you will have a greater chance of qualifying for cards that provide benefits such as travel points, cash back, low APRs, and more.
  • Avoid paying yearly fees: Some credit cards have annual fees but provide excellent rewards and advantages. If you're merely searching for an emergency card or a higher credit limit, it may be wise to avoid any needless Credit Card costs.
  • Keep track of due dates. Set up automated payments for the same day so you may have a consistent payback plan. Consider staggering them by two weeks to lighten the load.
  • Keep old accounts active: Even if you only make minor purchases, keeping older accounts open will benefit your credit in the long run.



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