How Many Credit Cards Is Too Many for you?
The question that has been on our minds: How many credit cards are too many? And if you're a card-carrying member of the free-points-for-everywhere-you-shop club, you don't want to be the one keeping track of how many you have. No worries, if you can't remember, I'll tell you.
If you can't remember the last time you went cardless, chances are that you're one of the 10.3 million people who have at least one credit card in their wallet. But is that too many?
You may think that having more than one credit card will help you build your credit score, but the truth is, that it's only going to do more harm than good. A report by the credit bureau Experian shows that people who have just one credit card tend to pay off the balance every month and don't rack up interest charges. People who have two or more credit cards (and balance them) have higher debt levels than those with only one card and take longer to pay it off.
Source
The moral of the story: if you need multiple cards for different purposes, go for them. But make sure you're using them properly and paying them off in full every month. Otherwise, you'll be building a negative credit history, instead of a positive one.
How do you know if you have too many cards?
If you can't pay off your balance in full each month, you have too many credit cards. If you're using credit cards to finance a lifestyle you can't afford, you have too many credit cards. If you're using credit cards to make up for financial shortfalls, you have too many credit cards. If your credit card debt is causing stress or arguments in your relationships, you have too many credit cards. If you're only making the minimum payments on your credit cards, you have too many credit cards.
Do you have a handle on your finances?
The first question you need to ask yourself is whether or not you have a handle on your finances. If you're constantly struggling to make ends meet or make minimum payments on your credit cards, then you probably have too many.
Can you pay off your balances in full each month?
If you can't pay off your balances in full each month, then you're likely paying interest on those balances. This can quickly add up, and it's money that could be better spent elsewhere.
Are you using credit cards for convenience or rewards?
If you're using credit cards for convenience or rewards, then you might be racking up debt without realizing it. Make sure you're aware of the interest rates on your cards and how much debt you're accumulating.
Do you feel like you're in control of your debt?
If you don't feel like you're in control of your debt, then it's time to take a step back and reassess your situation. Having too many credit cards can be overwhelming, and it's important to make sure you're not biting off more than you can chew.
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I had to pause for a minute to be sure of the difference between credit and debit cards. Because, where I'm from, everything is an "ATM card."
Now I know what a credit card is and that I do not have one. As a matter of fact, I don't think people have credit cards in Nigeria. I have never seen or heard of one before.
But now I know exactly what credit cards are for, and when the time comes that I can actually own one, I know it's best to keep just one unless there's an actual need for otherwise.
Haha.... I used to be confused over it too. But I understand better now.
Even though we don't have credit cards in Nigeria yet..... Wait ... We do .. but it's mostly for people who are employed though.
However, we do have loan apps, and a lot of people have borrowed from a lot of apps.... Hoping to pay them off... And get hook on the way 🥺
Makes sense. You just cannot hand every type of person in Nigeria a credit card; you'd regret it.
I have 1.
That is enough for me.
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Well, that's good.
I guess the one you have.... The purpose is to increase your credit score.... Right?
I've heard about credit cards and credit scores but I don't totally understand because not a lot of people use them here...I think.
I saw this video on yt one time about how it's beneficial to have a good credit score and all. It made me wonder why bankers here don't tell you anything any credit cards or even if they did I've never had anyone tell me anything about them.
Does the too many cards thing apply to debit cards too ? If you can rack up debt using a credit card what happens when you use debit cards?
My lack of knowledge on this is very obvious I can imagine but I'd like to know the answers to the questions I asked and I'd appreciate it if you could explain... thanks Iska.
You sort of ghosted me though so I came looking... what's up?
Lol. We do not use credit cards in our country babe. We only have debit cards.
But I think I saw one credit card stuff online and it was only for those getting paid like some sort of monthly salary.
I am sorry I ghosted you babe. I owe you an apology. Please forgive me. We haven't had power supply, and it's affecting my internet presence. I apologize.
Oh okay, that makes sense.
Apology accepted...I'm just glad you are okay.