How many credit cards do you think you should have in total in your wallet? Find out by answering these simple questions
In the United States, the average is 4 credit cards per person. “Personally, I’d like to put a stop to two of these plastics,” he explains. Ted Rossman, analyzer CreditCards.comfor CNBC.
“Some people use one as their primary card and another as a backup card. Usually the first card is used for expenses like shopping, dining out, traveling…”.
The problem is that the more cards you have, the easier it is to make a mistake or start managing them uncontrollably until you hit a serious economic dead end.
That is why, to discover how many credit cards you can control at the same time, it is important to ask yourself 3 very simple but revealing questions.
1. Will I be able to pay my debts in full and on time?
The secret is in the weight if you really need multiple cards
“Anyone who regularly uses a credit card should pay off their debts on time and in full each month to avoid accrued interest or late fees,” he explains. Nick OwenPersonal Finance Portal Editor man dots.
“If you can’t spend responsibly, it’s best not to have a single credit card,” analyst Rossman explains. “Everything is limited to honesty and knowing yourself.”
“If you are the very organized type of person, who improves every step you make and can even treat credit cards as a game of accumulating points and benefits, then this may be good for you. But if you are like the others, it is better or nothing.”
2. Will I remember to check my credit card bills regularly?
Each is a special case, some will reach a state, others will reach two
“It’s very easy to overspend on credit cards if you don’t know how to organize yourself and don’t know how to manage your payment dates,” Rossman explains.
In addition to accumulating debt and late payments, there is another reason to always review your transactions: the more cards you have, the more likely you are to get scammed or stolen. “You have to look at the accounts at least once a month to make sure you haven’t fallen for a scam.”
3. Will I continue to use every credit card?
Every credit card has issuance, renewal and money transfer fees, and some charge fees for withdrawing money. Many of these payments are active, but others are passive; It will be part of your monthly or yearly yes or yes, even if you no longer use one of your cards.
To avoid getting more cards, editor Nick Ewen creates a reminder every 6 months to review whether or not he uses plastic regularly. This way you can cancel it and avoid unnecessary expenses.
As you can see, the main answer to how many cards you should have depends a lot on how you think and act when you think about these three questions. As a rule of thumb, the more organized and methodical you are, the more you will be able to enter this world without fear.
Source: Business Insider Spain