How Many Credit Cards Is Too Many?

So you have a credit card, but how many more do you need? Find out the benefits of only having a few credit cards.

When you are in uni, you get inundated with credit card offers. As soon as the ink is dry on that school loan, your name is in a database somewhere. This is a crucial time in your life, when the decisions you make affect your entire future. I’m not just talking about your major either. I’m talking about your credit.

A good rule of thumb for students is to have only 1 credit card. You don’t even use it on a regular basis. Pull it out for the occasional emergency and pay that balance at the end of the month. Don’t buy pizza for the whole dorm and don’t even go near the shopping centre.

Having more than one credit card at this time in your life is not a wise choice. Most uni students have only a part time job to pay for extra expenses. Adding 2 or 3 credit card bills to that bottom line make it harder for ends to meet. This also ensures that you’re only going to be able to afford the minimum balance due. Credit card companies love that, because you never get out from under their thumbs that way.

As you get older and more established, that 1 credit card you had in uni will get better and better. Your balance will grow and the rewards will get nicer. Pretty soon you’ll get more offers. Now you can kind of pick and choose what you want. Still stick with one, maybe two cards. Get the best rates and the best rewards that work for you.

Some people who do have more than one card like to alternate use. If you have to use your Visa this month, pay it off and set it aside. Then the next time something comes up, use the MasterCard. This will keep your payments down and show great revolving credit on the three credit reports. 
 

For additional information on credit cards or related topics please visit our library of credit card articles.