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How Many Credit Cards Should I Have?

There are some people that have multiple credit cards, most people have one and some people have none at all. There are pros and cons of all of these situations and it is a good idea to have a good think about them so that you can decide which of these situations will be the best for you.

Having No Credit Cards

Credit cards do attract interest as they are a form of borrowing and this means that have expenses associated with them. If you do not have a credit card at all, then there is no chance that you will have to pay out this money. However, a credit card an be an extremely useful way to pay for items such as buying things in shops as it is quick and convenient. You will also find them better for buying online because they have insurance with them which means that if the item does not arrive or is not as described the card issuer will help you to get your money back. You will also be able to get some interest free credit when you use a credit card. This is because you will use it instead of paying for an item and then only when you get the bill, will you need to pay it. It can take as long as six weeks before you are required to repay the card which means that you will get that long without having to pay any interest on the money that you have spent and it can mean that it will give you time to find the money that you need, although you will need to be very organised to make sure that you are able to pay it in full. Otherwise, you will end up having to pay interest which will outweigh the benefits of the interest free credit.

Having One Credit Card

Many people will have one credit card. This will allow them to be able to use it when they are shopping, particularly online and help to allow them to shop in a secure way and to have insurance cover if they need it. They will be able to take advantage of the credit and it will be fairly easy them to manage it and hopefully repay it in full each month. Of course, having one card means that you have a limited credit limit and you may find that you would prefer to have access to more money, perhaps If you want to buy something expensive or if you want to use it to buy lots of things.

Having Multiple Credit Cards

With multiple credit cards, it will mean that you will have access to more money which can be convenient and means that you can buy more things. However, it also gives you the potential to build up a lot more debt. It can be harder to track your spending across two cards and so there is a bigger risk that you may end up spending more than you can afford to repay. However, by having two cards, if one has a higher interest rate, you can choose to use the cheaper one and then swap if rates change so it could be handy where that is concerned.

The right option is a very personal decision. You will need to think about what will suit you on a personal level according to what your spending needs are. However, also think about your capability for repaying a card and whether you will be able to afford to repay more than one. Also think about the potential cost of two, if you do not repay in full and the consequences of that.