How Many Credit Cards Should I have? What is Normal?

How Many Credit Cards is Normal?

There is no magic equation, resulting in how many credit cards that every person must have. Besides, your credit cards influence your credit score depending on how you utilize them. You’ll need to think of your financial requirements as well as behaviors to determine the number of credit cards you must need to have at your disposal.

Three to five credit cards is considered healthy for building good credit. A person should have more than one active credit trade account. More than one credit account demonstrates to creditors that you are capable of managing your money in multiple areas responsibly. People with established credit receive more favorable interest rates when they apply for loans.

Credit Utilization is a Reason People Get More Than One Credit Card

There are a few reasons you might choose to consider having more than one credit card. Having more than one credit can raise your credit score. The secret is to keep a careful watch on your credit utilization ratio. Utilizing means use your credit cards, but don’t use more than 30% of your combined credit lines. Ideally, you should be using less than 9%. Some people open more credit cards so they can have a higher combined credit limit.

 Credit Limit Credit Balance Utilization %
$5,000 $2,500 50%
$30,000 $2,500 8%


You can see why 8% utilization will look more favorable to lenders but is it not the same thing? The amount of the debt is the same. Banks see it as one person has more control of their spending limits than another.

I would caution anyone to take this approach as a reason for acquiring more credit cards. This behavior can also lead to 30,000 dollars in credit card debt. Be sure if you are to implement this technique that it will not tempt you to overextend yourself and result in crippling credit card debt.

Make it a habit when possible of paying credit card statements in full each and every month. Paying in full rather than being a revolver will increase your credit score. It is a myth that you build higher scores by carrying balances from month to month. The truth is using your credit card regularly and paying the balance in full each month will increase your credit score. Not using your credit cards will not increase nor decrease your credit score.

How many credit cards with rewards should I have?

Another reason to have more than one credit card is to have various types of reward credit cards in which to earn reward points. Earning credit card rewards can be a good strategy, but limit yourself to only a few.

A cash back credit card should be in everyone’s wallet. There is nothing more basic than a cash back credit card that you can use for anything. Discover card is very popular because they will offer during certain quarters an enhanced reward structure where you can earn higher reward values on certain goods and services.

Travelers should have a travel credit card but do your research. Many Travel credit cards have steep annual fees associated with them. If you do not use the card enough, you will not earn enough points to travel and be left with that annual fee to pay every year. Watch out for blackout days. Some airline credit cards limit your ability to travel. What good is a free plane ticket if you can only travel during off-peak travel times?

how many credit cards

How many credit cards do you have?

Department Store Credit Cards – How many credit cards are too many?

There is one type of reward credit card I would like you to consider very carefully. That is the department store credit card. Often people get roped into applying because they are offered 20% off their purchase “just” for applying. The problem is you might only shop at that store once every three years. Some individuals have a wallet full of virtually useless credit cards. Department store credit cards and their rewards are only useful if you are a frequent shopper of that store.

With department store credit cards how many credit cards is too many? Some individuals have a wallet full of mostly useless credit cards. Department store credit cards and their rewards are only useful if you are a frequent shopper of that store. So one unused department store credit card, in my opinion, is too many.


Build Credit Fast – Improve Credit Score

How to Build Credit Fast and how to Improve Credit Score Quickly

You must be laser focused on your credit score when you decide you want to build credit fast. First, as always, pay your expenses on time and make use of your credit sensibly. This is the first crucial step to improve credit score quickly; maintain responsible credit habits. You will not see positive outcomes overnight. Allow three months for the changes to start improving your credit rating.

build credit fast improve credit score quickly

Pay Down Your Credit Card Balances

Pay two times a month. For instance, you have a credit card with a $1,000 limit. It is a rewards card, so you utilize it for every little thing. As a matter of fact, each month, you reach your limit. The credit report shows you owe $1,000, even if you send out the check to pay the balance off. The trouble is the credit card firm is most likely reporting the declaration balance every month. So it appears you have a $1,000 limit as well as a $1,000 balance. You can not build credit fast with high credit balances.

That’s a 100 percent credit utilization, and not an advantage in regards to your credit score. An individual with a $1,000 credit limit as well as a $500 balance on their account will have a 50 percent credit utilization. This credit utilization ratio will hold true whether he or she has all those balances on one card or distributed over several cards.

Paying down your credit card balances is a way to build credit fast. Lowering utilization will noticeably improve your credit rating. Live lean for a couple of months. Hold a yard sale or get a small loan from a family member to drop your credit card balances.

Boost Your Credit Line to Improve Credit Score Quickly

If your present credit card company stops providing you a credit limit increase, you can obtain a credit card from another company. It will help aid lowering your credit utilization and improve credit score quickly. You could compare and contrast credit card offers to discover which credit cards extend a generous credit limit. The optimum is thirty percent credit utilization or less. Leaving zero balances on your credit cards for prolonged periods of time will do nothing to improve credit score.

Beware: Do not apply for too many credit cards at once

Whenever you make an attempt to get credit, it could create a small dip in your credit score that lasts between 1 – 2 years. If a person makes numerous applications for credit, it suggests he or she wants to use even more credit. Banks and creditors see multiple credit inquiries as a red flag. Do not take the chance of denting your credit score. Look for just one or two brand-new cards if you’re going to attempt this method.

The credit card tool below will allow you to know what credit card offers you will be able to get approved. The best part is if you are just curious you can see what credit card offers you are pre-selected for without a hard pull appearing on your credit report. Please keep in mind if you decide to apply for one of these offers a hard pull will appear on your credit file. The main benefit of this tool is that you are able to find a targeted credit card offer based on your credit level. Sometimes people apply without knowing for credit card offers they do not qualify for. As a result, applicants will get denied and an unnecessary hard pull will appear on their credit report.

See offers matched with your credit profile build credit fast

Keep Your Old Credit Card Accounts and Build Credit Fast

Some individuals mistakenly think that old the financial debt on their credit record is harmful. They want to clean house and cancel credit cards they do not use anymore. Credit bureaus consider years of past habits, not simply your present activities. One of the best means to build credit fast is to leave old credit trade accounts on as long as possible. It is important not to shut down old accounts where you’ve had a long established history. That part of your credit history is called age of accounts and that accounts for 15% of your overall credit score.

In conclusion, the greatest active ingredient in an excellent credit score is just a month after month of plain-vanilla, on-time payments.


Reward Points Start Earning – Reward Credit Card Benefits

Benefits of Credit Cards that Earn Reward Points

Nowadays most of the credit card bank issuers provide some various rewards credit cards that individuals could apply for, gas discount, travel rewards, as well as cash back credit cards. These are some of the most popular types of credit cards to earn reward points.

Rewards credit cards sometimes resemble cash back credit cards. Essentially, you collect points based on how much you make use of the card over an amount of time.

If you want to wish to build up points, you could use your credit card anywhere and also whenever feasible. It does not suggest spending money without need. It suggests that you need to utilize your card whenever buy things you need.

Rewards credit cards could be a terrific tool that allows sensible spenders generate points for doing nothing. It’s an issue of understanding when as well as the best to utilize your reward credit cards.

reward credit cards earn reward points

Types of Reward Credit Cards to Earn Reward Points

  • Cash Back Credit Cards
  • Gas Cards
  • Airline Credit Cards
  • Travel Credit Cards
  • Hotel Credit Cards
  • Merchandise Reward Cards
  • Auto Rewards Credit Cards

Nevertheless, rewards cards are not for every person and also if you are going to benefit from them, make the most of your reward credit cards it is essential to recognize, whether these cards are the best deals for you. Bear in mind that rewards credit cards typically have a greater rate of interest, as well as a few of them, have a yearly annual fee.

Individuals that understand they can repay their balances in full each month should have these reward credit cards. Customers that have issues with paying balances in full each month should search for a low rate of interest credit card instead. Some of these cards offer 0% introductory rates.

Do not place any of your rewards at risk. As quickly as points come, they could vanish and go away. If you are late with a monthly payment, you could run the risk of losing those rewards for that month. As well as if you default on your card, all the points you earned will disappear.

Rewards credit cards have benefits if you make use of the reward points. It is pointless to have a credit card that gives you with airline miles if you never travel or fly. Airline credit cards often have hefty annual fees, and if you don’t use your mileage reward points, you are wasting money. The first thing to consider when selecting a reward credit card is exactly how beneficial the rewards will be.

Click here to see additional reward credit cards to earn reward points.

Popular Credit Card Offers to Earn Reward Points in 2017

  1. Chase Freedom Unlimited℠
  2. Discover it® Secured Credit Card
  3. Capital One® QuicksilverOne® Cash Rewards Credit Card
  4. Blue Cash Everyday® Card from American Express
  5. United MileagePlus® Explorer Card

If the credit card grants you with some points that could be utilized by certain vendors or suppliers, make sure you make purchases at these stores before applying for that credit card.

One of the most common reward credit cards is cash money back rewards. When making an application for a credit card that provides cash back rewards, find exactly how the reward point bonuses are calculated. Some credit cards offer rewards in a type of check, while others include the rewards to your account in the form of credit.

When selecting a reward credit card, you must take note of the price of a credit card. Stay clear of credit cards that set you back greater than the benefit. Try to find reward credit cards without annual fees. This way you are not under pressure to spend more than you can afford to recover the cost of the annual fee.

Pick a reward credit card that allows you to build up an unlimited quantity of reward points that are never capped at a certain spending level. You could see restrictions at some level on your rewards if the credit card puts limits or restrictions on the quantity of rewards you obtain or the period you could utilize them.

So credit card reward points are a type of a sort of product incentive for making use of credit cards. Before applying for a credit card, make certain that you understand the reward program structure, as well as in exactly what way rewards are collected and earned.