How Many Credit Cards Should You Have?

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Zheng Xiangchen now holds the Guinness World Record for the most credit cards with 1,562. A four-story skyscraper could be reached if the cards were properly laid end to end. After seeing Walter Cavanagh’s record of 1,497 credit cards, Zheng got the idea to start his own collection in 2013.

Most individuals don’t need that many credit cards, and they couldn’t manage that much debt if they did. So, how many credit cards should the rest of us have?

There isn’t a certain amount of credit cards that everyone should carry about with them at all times. It all boils down to how well you’re able to keep track of how many credit cards you have.

There are an average of 3.84 credit cards held by American people in 2020. Most individuals can get by with only one or two credit cards, at most.

How Many Credit Cards Should You Have? Source:

The Advantages of Having Several Credit Cards on Hand

With so many different credit cards available, it’s possible to have a number of different credit cards, each with its own set of features and advantages. A rewards credit card that offers more points on groceries, a rewards credit card that offers higher rewards on eating out, and a card that doesn’t charge foreign transaction fees, for instance.

It’s simple to keep signing up for credit cards since credit card issuers are continuously releasing new credit cards with bigger benefits and longer promotional periods. Credit card churners are those who sign up for rewards credit cards over and over again in order to get the signup bonus. To prevent falling into debt and credit card difficulties, there is a strategy to rotating credit cards.

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The use of various credit cards may also assist in the separation of different financial obligations. Use one credit card for personal expenses and another for company expenses, for example.

Which Credit Cards Are Too Many?

There are seven credit cards on average for those with the best FICO credit ratings. In order to maintain a good credit score, you should have no more than seven cards open at a time. Regardless of the amount of credit cards you have, having large balances on your credit cards might have a negative impact on your credit score. A high credit score may also be achieved by keeping your credit cards open for a long period and making all of your payments on time.

You don’t have to have a lot of credit cards to be financially responsible. Keep your credit usage low, pay off your monthly bill in full, and never charge more than you can afford to pay back each month while using numerous credit cards. Once your spending gets out of hand, you need to exercise restraint so you don’t wind up with more debt than you can pay off.

How Having a Lot of Credit Cards Can Be Dangerous

More credit cards means more responsibility for keeping track of your outstanding amounts and payment deadlines, particularly if you’re carrying balances on more than one card. Use a calendar or reminders to keep track of your due dates and make sure you don’t miss them.

If you’re seeking to secure a mortgage, having too many active credit cards might impair your chances. Many lenders take into account both the amount of debt you have and the quantity of credit you have accessible to you. Having a history of amassing large amounts of debt on your credit cards might disqualify you from obtaining a mortgage.

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Higher credit limits might be yours if you’ve shown that you can appropriately manage your debts using a credit card. It’s easy to be tempted by having a lot of credit accessible to you. The more credit cards you have, the greater the likelihood that you will carry a debt. That way, you don’t have to pay interest on many credit card balances, therefore reducing your overall debt burden.

You should never carry more than two or three credit cards at a time, regardless of how many you have. If your main credit card is denied, you’ll have a back-up, and you’ll also reduce your financial losses if your purse or wallet is taken.

 How Many Credit Cards Should You Have?

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