Credit Cards: the More You Have – the Better?

Every day we receive tons of different credit card applications. Banks and credit card companies assure that they can satisfy every consumer’s needs. They offer reward credit cards, business credit card deals, student credit cards, gasoline credit cards, etc. Despite the credit history, everyone is promised to get a credit card deal of his/her dream. Credit cards can give us cash back, rebates, free movie tickets, discounts, free flights and hotel stays, etc. No doubt, everyone has ever felt tempted to apply for one more credit card in the pursuit of the best deal. The statistics shows that most Americans own from five up to ten credit cards. An average American family owes credit card companies $12,000 when an average household is only about $ 50,000. Credit card debt of an American makes 24% of the annual income and it is without mentioning car loans and mortgages. Financial experts are concerned about ever-growing American credit card debt. The question is: How many credit cards an average consumer need? Is it better to use as many credit cards as you can get? And can the number of credit cards you own affect your credit history? Financial experts say that two or three credit cards are quite enough for an average family. The main reason is your outstanding balance. Outstanding balance is one of the first things credit card companies pay attention to. Keep in mind, your balance should be between 25% and 50% of the available credit on each credit card of yours. If you exceed your balance potential creditors are going to deny your request for a credit. Before applying for one more credit card, consider the fact that the more credit cards you own, the harder it is to keep control of your balance. Using 3 reward credit card deals, 2 gasoline credit cards and a business credit card deal at the same time, is so easy to lose control of your balance. Mind exceeding your balance on one of the credit cards you have, can affect your whole credit history. And you know how good credit history is important for your secure financial future. Besides, the better your credit report is the more beneficial credit card deals you can count on. Consider your needs and purposes before applying for a new credit card. You hardly need ten different credit cards. Just think, you can use a business credit card for your business purposes, a cash back credit card for purchases and a gasoline credit card to get some rebates on gas. Isn’t it enough? I think, it is. Mind, every credit card means debt. Don’t let you debt become unmanageable for you. Don’t apply for more credit cards than you need. Credit cards are designed not to show off before your friends and colleagues, but to ease you life. So, next time when you get a new credit card application, ask yourself: Do I really need one more credit card?