How Many Credit Cards Should You Hold In Your Wallet
According to Experian Director of Education Rod Griffin, it’s not the amount of cards one has; it’s the way they’re using used. People just need one or two cards to ensure they have good credit scores.
What is considered too many is based on the individual person and the unique credit history they have. Credit scores have a lot of emphases placed on them by how much of the credit is used out of the availability.
Griffin said up to 35 percent of consumers’ credit scores are based on this factor. He said the amount of credit cards carried is not as important as the balances that are on them.
The Issue With Hard Inquiries
You should never apply for so many credit cards at one time since a multitude of inquiries raises questions from lenders. Why is this person asking for a plethora of potential debt from different lenders? Will they be able to pay back what they borrow from the credit card company?
The risk linked to applying for various credit cards can vary on what your credit standing is. If it’s bad shape now, apply for two or more cards in a short period of time can be bad. If you have good credit, turning in two or three applications won’t sting that much.
Use Your Credit Cards Wisely
It doesn’t matter if it’s an old credit card or a new one, you need to use it wisely. Work to pay the balances off on time, every month if you can. You want to keep a low utilization rate as much as possible. Don’t carry a balance that’s near the card’s credit limit. If a person has five cards, they should be used for small purchases and pay the balances off in full each month. A low utilization rate will repair and benefit credit scores.
The real question to ask about credit cards and too many is how are the cards being used that you have in your hands right now.