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How Many Credit Cards Should You Have?

Are there multiple credit card accounts under your name? Or do you only use one card for everything?

There is no right or wrong answer to this question, as it depends on your personal finances and spending style. However, before you take out more credit cards, ensure you know the benefits and drawbacks. Here is everything you need to know about having multiple credit cards.

Benefits of Multiple Credit Cards

Using more than one credit card can be beneficial. Next time you wonder, “Is 5 credit cards too many”, remember these advantages:

Drawbacks of Multiple Credit Cards

While you can have multiple credit cards and good credit, using multiple cards is not right for everyone. Here are some noteworthy drawbacks of credit cards:

Managing Multiple Credit Cards

If you are using multiple credit cards, make sure you are managing them sensibly.

Make sure you are keeping your payments organised. Take note of each card’s payment dates, interest rates and credit limits. Review each account weekly to guarantee you don’t forget to make a payment. Set reminders in your calendar or on your phone to help yourself stick to this schedule.

Always make at least the minimum payment on each card. Checking in monthly may lead to you missing the required minimum, and then you will have high fees to tackle. When paying credit cards off, you should always put the card with the highest interest rate first.

Learn more about credit cards here.

How Many Credit Cards Should You Have? The Takeaway

Having credit cards can feel empowering. But you must be responsible with your usage. Never borrow more than you can afford to repay, or you may experience financial difficulties. When in doubt, consult expert financial advice for assistance.

More Information

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Or visit the Polar Credit Info Hub to continue learning about personal finance, loans and credit alternatives.