How Many Credit Cards Should I Have? Things You Should Know

Credit cards can be a tricky business.

On the one hand, you need credit cards in order to build up your credit.

On the other hand, you don’t want to end up drowning in debt.

You have to walk a fine line when it comes to credit, and use your cards very responsibly.

But it begs the question – how many credit cards should I have?

Well, there isn’t a magic number that will automatically get you an amazing credit score. The number of cards you have depends entirely on your current credit situation.

However, we are by no means saying that it’s impossible to determine how many credit cards you should have.

There are some relatively straightforward ways to determine how many credit cards you should have in order to maintain or improve you credit score, and we’ve put together a few guidelines to help you out.

Many people believe that the number of credit cards you own greatly impacts your credit score – but that’s more or less a myth.

The number of credit cards you own is much less important than how you manage all of those accounts.

If you have 10 credit cards and are managing them very well, then you’ll see a positive impact on your credit score.

But if you have one credit card and are overusing it, not paying your bill on time or going over your limit, then you’re sure to see your score go down.

That being said, have a ton of credit cards isn’t the best idea either because it increases your debt potential.

See – the answer isn’t so simple.

The number of credit cards you should have is a very subjective matter and takes some thought, care, and a closer look at your current debt situation and credit score.

We hear the words “credit score” thrown around a lot, but if you’re just now opening up some credit accounts, you may not have a firm grasp of what that actually means.

Investopedia defines your credit score as “a statistical number that evaluates a consumer’s creditworthiness and is based on credit history.” Simply put, it’s a record of your demonstrated ability to repay debts.

Lenders use your credit score as a tool to determine the probability that you will repay your debts. The higher your score, the more financially trustworthy you are in their eyes.

The FICO score is the most commonly used, and ranges from 300 to 850.

If your score is below 640, …read more

Read more here:: todayassistant

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