How Many Credit Cards Deals Are Enough?
By: Wendy Drews | Posted: 22nd January 2008
Every day we receive credit card applications in a great number. Banks and credit card companies do their best to attract our attention. They offer us credit card deals with rewards, credit card deals that are aimed to help in business, student credit cards, etc. Today everyone can easily find a suitable credit card deal.
Credit cards give us enough benefits: cash back, free movie tickets, discounts, free flights and hotel stays, etc. Having received one more credit card offer in the mail box is so easy to be tempted to apply for one more credit card deal. But there is a question: how many credit cards you should have? The more credit cards you have - the better? Or should you limit the number of credit cards you use?
Most Americans use from five up to ten credit cards at the present. An average American family owes about $12,000 on their credit cards when an average household is only $ 50,000. Today credit card debt makes 24% of an American family’s annual income and it is without mentioning car loans and mortgages.
Financiers are concerned about this statistics. Americans are in deep debt!
Now let’s try to find out: How many credit card deals an average consumer need? Most experts advise credit card owners to cut the number of credit cards they own. The experts are sure that most consumers need only two or three cards.
One of the reasons to use no more than three credit cards at the same time is your outstanding balance. Your credit card balance should be between 25% and 50% of the available credit on each credit card you have. When you use lots of credit cards at the same time, it can cause you many problems to control the balance on each of them. Besides keep in mind, exceeding the balance on one of your card can affect your whole credit history.
Think twice before applying for a new credit card. Take into account your needs and financial goals. Make sure that you will be able to pay the bills. When you use a cash back credit card, 2 gasoline credit cards, a balance transfer credit card deal and a business credit card at the same time you can have many difficulties in keeping your balance on all these cards under control. But if you use only two or three cards, you will easily keep all your spendings under control and will know exactly where you stand with your balances!
Using too many credit cards you will hardly feel how credit cards work for you. There will be too many bills and few benefits. You should realize, every credit card means debt. Don’t get into deep debt in the pursue of a new credit card. Think before to apply. Mind, credit cards should beneficial but few.
About the Author
Wendy Drews is a young perspective credit card specialist. She has a number of articles about credit cards and credit card deals.
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Tags: rewards, credit card debt, financial goals, free flights, mail box, credit history, car loans, credit card balance, balance transfer, household, movie tickets, credit card offer, hotel stays, credit card applications, student credit cards, credit card deals, financiers, suitable credit