Many Americans often ask the question how many credit cards I should own. This is a tough question to answer because it really depends on the individual. Since it depends on the individual, let me try to give you some basic guidelines.
If you don't have any credit cards, then you should never have any more than 2-3 cards. Once you have been careful to choose your first card, keep that card open because one of the things that make up your credit score is length of credit history. The first card you open should be used and kept open as long as possible. This will really help your credit score because you are providing a good credit history for as long as you have had credit. Remember to always pay your bill on time and in full (if possible) but for at least more than your minimum payment. Keep your balance on the account to below 30% of your credit limit on any credit card that you get.
Now if you have had credit for a while and find yourself with a bunch of credit cards, you will need to take a review. Take the time to look at how many credit cards you have and know that you probably should have no more than 3-4 cards. But you don't just want to cut the cards up and call the credit card companies to cancel the cards. By cancelling the cards, you must be ready to pay the debt off in full. Since most Americans don't have the means to do that right away, you will want to do the less drastic option. Put the cards away and pay off the debt as quickly as possible. Then you still may not want to cancel the cards since they might be able to help your credit score. When you get most of your debt paid off, and then decide which cards to keep and which to keep. You want to keep your oldest credit card no matter what. This gives you the longest credit history age for a better score. Then you want to keep your credit card with the best interest rate. This will generally be your daily use card. Then you want to make sure you keep the one with the largest credit limit. You will want to use each card a bit to keep them active. Some families have a credit card assigned to a particular task. One for emergencies, one for "work" items that can be used for tax purposes, one for family needs, etc...
Now as you get older, you may be collecting credit cards over the years. This is actually normal but you should start thinning things out and getting those credit card debts paid off. Having more than two cards generally by the time you retire may be two too many. But if you have managed your debt and have them paid off, having two is probably just fine. Credit card debt often becomes overbearing for some older adults and if they suddenly have a limited income, the debt will become completely overwhelming.
So as you can see, the number of credit cards you should have really depends on the individual and also how they manage their credit card debt. If you know how to manage it, you can never have too much. But generally most Americans get a little more credit than they can manage. This makes their debt too much and lowers their credit score. Bad credit is often the lack of managing their credit debt. But you can improve your credit score by managing their credit debt.
If you don't have any credit cards, then you should never have any more than 2-3 cards. Once you have been careful to choose your first card, keep that card open because one of the things that make up your credit score is length of credit history. The first card you open should be used and kept open as long as possible. This will really help your credit score because you are providing a good credit history for as long as you have had credit. Remember to always pay your bill on time and in full (if possible) but for at least more than your minimum payment. Keep your balance on the account to below 30% of your credit limit on any credit card that you get.
Now if you have had credit for a while and find yourself with a bunch of credit cards, you will need to take a review. Take the time to look at how many credit cards you have and know that you probably should have no more than 3-4 cards. But you don't just want to cut the cards up and call the credit card companies to cancel the cards. By cancelling the cards, you must be ready to pay the debt off in full. Since most Americans don't have the means to do that right away, you will want to do the less drastic option. Put the cards away and pay off the debt as quickly as possible. Then you still may not want to cancel the cards since they might be able to help your credit score. When you get most of your debt paid off, and then decide which cards to keep and which to keep. You want to keep your oldest credit card no matter what. This gives you the longest credit history age for a better score. Then you want to keep your credit card with the best interest rate. This will generally be your daily use card. Then you want to make sure you keep the one with the largest credit limit. You will want to use each card a bit to keep them active. Some families have a credit card assigned to a particular task. One for emergencies, one for "work" items that can be used for tax purposes, one for family needs, etc...
Now as you get older, you may be collecting credit cards over the years. This is actually normal but you should start thinning things out and getting those credit card debts paid off. Having more than two cards generally by the time you retire may be two too many. But if you have managed your debt and have them paid off, having two is probably just fine. Credit card debt often becomes overbearing for some older adults and if they suddenly have a limited income, the debt will become completely overwhelming.
So as you can see, the number of credit cards you should have really depends on the individual and also how they manage their credit card debt. If you know how to manage it, you can never have too much. But generally most Americans get a little more credit than they can manage. This makes their debt too much and lowers their credit score. Bad credit is often the lack of managing their credit debt. But you can improve your credit score by managing their credit debt.