The More Credit Card Deals the Worse Your Credit Score Is?

11/02/2007
Using Credit Cards

Every person decides for himself how many credit cards he or she needs to have. This number usually varies from 6 to 10 plastics. But with some credit card holders it can be just 1 card and vice versa, in some cases the amount of credit cards per household makes up about 40 deals or even more.

You ask why own this almost countless number of cards? Well, have you seen those numerous credit cards classifieds you hit upon on every corner? Remember all those applications flooding your mailbox? You see, sometimes it is hard to resist the temptation of applying for another enticing credit card offer.

And then one fine day you get your bills and roll your eyes at their amount, not to say about the total balance you have to pay off. Your chances to get into huge debts skyrocket with the speed of light. Guess, what can happen to your credit score ...

Yes, you are 100% right. They will obviously be damaged. Sooner or later you will not be able to cover all the expenses or, better to say, all fees and rates on all your numerous cards. And you will find yourself in debtor's prison. Therefore, you are not only to control your cards' balances, but the amount the plastics in your wallet in the first place.

So, what is the most appropriate number of credit cards you should have? Actually, none of financial experts has found a solution for this dilemma. There are many factors that influence the necessary amount of credit card deals. It is individual for every credit card holder.

Statistics shows that an average American has about 7 credit cards of various types for different purposes. But high-income credit consumers can afford having significantly more plastics, and this does not affect their paying capacity. Banks love this type of clients and give their preferences to such people.

In case you have average income of if you at the beginning of your credit pathway, owning something like 30 or 40 credit card offers will cause nothing but problems for you. First, it is really hard to control so many cards at a time. You risk missing some payments, which will damage your credit score which will be reflected in your credit history right away.

Sometimes it is not easy to sort out which card to use for what purposes. For instance, some credit card owners use balance transfer cards for making purchases, which results in paying high rates. This again threatens you with getting into debts and hurting your credit score.

During holiday season you desperately try not to forget someone of your friends of family members on your gift list. At this period the temptation to get several store credit cards is barely controllable. In the pursuit of 10% discount on purchases, people do not pay attention to the fact that as a result their expenses nine times out of ten exceed rewards and discounts.

So, be reasonable in your credit card deals. Apply for only those that fit your needs, lifestyle and income level. Try to cope with these cards for a start. Experts advise to have from 2 to 6 cards, that is about an optimal amount of deals you need to get maximum benefit and to manage to keep your credit card balances under control. Just try hold back your thirst for filling out every seems-to-be extremely profitable credit card application and you finances and your credit score will be safe and sound.

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Comments

sheila darling., 09:10 AM, November 11, 2007
of course, that type of moneybags are actually allowed to get more than, say, 10 plastics. but this is not for us, mere mortals. i prefer having 2-3 credit cards w/no annual fee, and that's okay. the more you get, REALLY, the worse the score is.

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