Thousands of dollars are spent every day by people using their credit cards. People swipe their cards to make purchases that they want and purchases that they need. It is not uncommon to see a person open their wallet and have several credit cards. Still, many wonder how many credit cards do they actually need or should have.
The Number of Cards May Affect Your Credit
It is recommended that an adult should have at least one credit card. This card will help a person build up their credit and can be used in case of emergencies. Having too many credit cards can have a negative impact on your credit score. Having several credit cards makes it easier to overspend. It is best to use one card and pay off the balance in full each month or at least more than the minimum payment. People with several credit cards also have a hard time keeping track of the due dates and are often charged a late fee. The average adult has about two credit cards.
Credit Cards and Credit Score
Having several credit cards alone will not impact your credit score. How much these cards are used will have an impact on your credit score. FICO alone will look at payment history on the cards and that will make up 35 percent of a person’s credit score. New cards and credit inquiries will make up 10 percent of the score.
Cards to Have
While there is no magic number about the number of credit cards that a person should have, the more credit cards that they own the higher the risk they are taking. A person should have a credit card to help them build up their credit score and their credit history. While having several credit cards may not be a bad thing, it does give a person more spending power which makes it easier to go into debt and to miss payments.