Today went out with my friend.
I notice she have lots of credit cards. Lady card, DBS black card, taka visa card, everyday mastercard, platimum visa…just to name a few…
When i ask her, she told me cos each card is for diff purpose…i was like WTF…
My credit card, one card rules everywhere…lolz…
Do you think one needs so many credit card?
How many credit cards you have?
Credit and debit…which one u prefer to use more?
I have 8 cards…pretty much got a specific use for each…
I have the usual Home Depot and Lowe’s cards I use when they have no payment/no interest deals for a year…Other than that I use my frequent flyer miles cards for other purchases (so I can fly everywhere for free when I retire!)…
Don’t be so concerned as to which card to use as having a decent accounting system set up…Shouldn’t matter which card you use, but use the rewards cards first!..
I would have to say two or three low limit cards should be plenty. When most people get credit cards, they are lulled in by minimun payments. They think" Oh, I only have to pay $15 dollars a month". Ok, thats per card, and there are usually annual charges, or late fees if you fall outside a short grace period. Do the math, your friend has 8 cards, lets say 15.00 a month minimum payments 8x15=120.00 per month just on the minimum payment, and by the way that just covers interest. And again, you somehow miss apayment that amount can grow quickly, and the point of credit cards, which is to build your credit, will work against you. Im not saying dont have them, but be wary of the credit card companies, watch the spending limits and don’t get in over your head.
i’ve heard that these days, cards with mileage reward programs are setting shorter expiration dates on them? this stopped me from getting one of those and instead a cash back reward card…
It all depends on what you are trying to do. If your goal is to build credit, and build a high FICO score, you might want to consider fewer cards.
The system as I have had it explained to me works something like this:
Keep 3 cards.
Keep your spending on each car to 30% of the limit each month.
Pay your full balance on time, or ahead of time.
Ask for credit limit increases once or twice a year letting the credit card company know that you would like to spend more each month, but you want to keep your ratio below 30% of your limit because you are keenly aware of keeping your FICO score high.
When you ask for a credit limit increase, ask the CC company not to run a credit report because you are getting ready to apply for a new mortgage and you don’t want any credit inquiries on your credit report that will degrade your FICO.
Keep your cards for a long time. Good steady credit for years is much better than lot’s of credit accounts.
If your credit card company offers separate credit lines, like AMEX Open, apply for that as well.
Then use your cards within your means, pay your bills, and grow your credit and FICO.
SO, it pays to pick your three card wisely and keep them for the long term.
A good mix is an AMEX, a VISA and a Master. Then decide which ones should be cash back, miles, or whatever.
Lastly, if you have more than three cards, don’t close any accounts. Keep them open and don’t use them. Longstanding accounts that you don’t use are better than shutting them down. If you have accounts that you have closed and they still show on your credit report, consider contacting the company to reopen the account. You MAY get a FICO boost due to the “age” of that account.
With everything said, it’s a science that works a little more like an art.