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The Ideal Number Of Credit Cards

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Published: 02Nov2009
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Most people have the notion that the more credit cards you have in your account, the better your credit score would be. The fact is, the number of credit cards is not much of a factor in your credit score. Just because you have many credit cards in your name doesn't mean you'll also enjoy a high credit score.

What enhances a person's credit score is the way he handles his credit. In short, timeliness of your credit cards payments along with the punctuality of your payments to your other creditors is what will enhance your credit score.

The type of credit you have in your account is also a factor that can boost your credit. For instance, if you have a mortgage loan, a car loan and one or two credit cards in your account, that will be an advantage because it shows your capability to manage different accounts effectively. Of course, having different types of credit is only impressive if you are able to keep up with your payments with all of them. Otherwise, it will not be considered as an excellent credit report.

All are considered as one type of debt so it doesn't really make a difference in your credit score whether you own a lot of credit cards or not. It will have an effect in your score however, if you're having difficulty juggling payments between of your credit cards.

SO, what is the ideal number of credit cards a person should have? Ideally, one or two should be enough to give a person the option to make advance purchases time and again. If you have two, you should keep the other one strictly for emergency purposes only. Use it occasionally on small purchases to keep the account from closing especially if you've had that for a long time.

You can use your other credit card for your purchases and on paying your bills especially if it's a reward credit card. The important thing to remember about reward credit cards is that they often come with high interest rates, so you need to be sure that you can repay your balances in full on or before your due date of payment. It's best to set aside your payment along with payments to the rest of your creditors immediately after you got your salary. This way, you can sure that you will not carry over any balances on your credit card and avoid paying the interest rate altogether.

Use it just to be able to shop more safely since you don't need to bring cash but only charge an amount that you're completely sure you can back on time. Plan your purchases and write them down so you can calculate the total in advance.

If your current credit cards come with high rates, then certainly it's best to apply for a new with lower rates and more reasonable terms. But don't close out your older credit cards because they're an important part of your credit history. Instead, keep them with you and use it on small purchases just to prevent from closing on its own.

Suzy Vanstrusen is a credit analyst and a writer of the website EZCreditRepairSolutions.com and has been providing consumers with tips and tricks in repairing your credit. Check the site for more free credit repair tips and credit repair services.

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