A credit score is nothing but a personal rating which determines the interest you pay for loan or whether you are qualified for a loan purposes. This will be calculated based on the payment history how much you are earning and your length of credit history and this will also check the information how often you apply for a new credit card and the types of the credit cards.
How many credit cards should I have ?
Benefits of carrying multiple credit cards
There are some benefits of caring multiple credit card, says your credit card which offers different benefits and which is included for multiple purposes. For purchasing groceries through credit card there will be rewards awarded for that purpose and another type is more rewards on dining purposes and here this credit card does not charge any extra fees for foreign transaction fees.
The credit card issuers who are constantly introducing new credit cards with better rewards and longer promotional periods will be helpful for keeping sign up for credit cards. People who follow the repeated process and sign up for reward credit cards will earn the sign up bonus and they are known as credit card churners.
A system is followed to churning credit cards where this is helpful to avoid getting into debit and credit card trouble. So having multiple credit cards will help to keep hurting finances separate and this will also helpful for loan purposes if the amount of the interest is paid on time.
Risks of having too many credit cards
There are also some of the risks by having too many credit cards is that you have to keep knowing the balance and due dates is the main important one in the credit card especially this denotes that if you have balance on multiple credit cards.
Even by using a calendar a reminder in your mobile phone which will helpful to ensure the due date of the credit card since if this is not paid on the correct date fine amount will be collected which will also affect for loan purposes.
By opening too many credit cards will also hurt you when you are trying to get approved for a mortgage loan. Money lenders consider the amount of credit which is available to you in the addition of the amount which is going to be debited.
Only you are responsible for any issues which has been raised for the credit cards so having too many credit cards will also create a issue no matter that how many credit cards you are going to have it will be sufficient to have two or three cards at a time.
How many credit cards is termed as to money
People of the credit card owners who have the highest credit score of an average of about 10 credit cards according to FICO, this is termed as it is possible to have more than 10 credit cards but you should have a higher credit score. Having high balance on your credit card which is relative to your credit limit and which will hurt your credit score, in other words having less number of credit cards with higher credit quotes is a better option.
Keeping your credit card unused for longer days is also waste so the credit cards have to be used often. Keeping your credit cards open for longer period and using the credit card for paying all your bills at a time is also a factor which helps to achieve an excellent credit score.
The number of credit card you have is not a matter the important one is you have to have the capability of managing those credit cards with balance. You should follow some of the key roles that if you have multiple credit cards you should pay the balance in the full every month and you should follow discipline that spending out more should be controlled since which will create a trouble to pay at the end of the month.
Veeramachineni Lalitha
I am Finance Content Writer. I write Personal Finance, banking, investment, and insurance related content for top clients including Kotak Mahindra Bank, Edelweiss, ICICI BANK and IDFC FIRST Bank. My experience details : Linkedin