Credit card

How many credit cards should I have?

To answer this question we must first know the product, its features, benefits, as well as some tips for use, let’s start by resolving these aspects and then get to the answer.

Surely you have already asked yourself this question: how many credit cards should I have? Asking this question is a good first step, since most of us entered the financial world through this product: the credit card.

However, one of the limitations with which we start our credit history is the lack of financial education, ignorance of the products and therefore, mistakes in their management. That is why asking ourselves how many credit cards I should have is a good start.

To answer this question we must first know the product, its features, benefits, as well as some tips for use, let’s start by resolving these aspects and then get to the answer.

Characteristics of a credit card

Let’s remember that credit cards are forms of payment granted by financial institutions, which have an available amount of money, which once used and paid in full or in part is renewable.

Some of the elements you should consider in this product are:

  • Interest rate
  • CAT (Total Annual Cost)
  • Commissions
  • Annuities (if applicable)
  • Benefits
  • Insurance

Credit cards, properly used, are an excellent tool that we can take advantage of in our economy. Now, how to determine how many I need, let’s get down to it.

If at this moment, your commitments allow you to pay only the minimum and therefore, are generating interest, it is important to analyze if you are not over-indebted and adding another card may worsen the situation.

How do I determine how many credit cards I should have?

There is no single, worldwide number of credit cards that a person should have, however, there are guidelines that we can follow to determine what is the right amount for a specific person. Let’s follow these steps to find out:

1. Analyze your income

To establish the amount of credit cards suitable for you, it is a good first point to establish your payment capacity from the income and expenses you have, mainly because you should not take it as additional money, otherwise it is very possible that you get into debt.

2. How is your behavior with your current credit cards?

The next step is to determine my current behavior with the credit cards I already have. Do I make regular payments? Do I pay on time? Am I paying in full? Do I pay the minimum?

If at this moment, your commitments allow you to pay only the minimum and therefore, are generating interest, it is important to analyze if you are not over-indebted and adding another card may worsen the situation.

On the other hand, if you meet your credit card payments on time and on budget, do not generate a debt for you to acquire another card and you have specific purposes for it, you are in a position to consider one more.

What am I looking for in a new credit card?

It’s time to analyze the reason for another card, what is the purpose you have with it? For example, if you’re looking for a credit card specifically for travel, concerts, interest-free purchases, a departmental card, it’s a good idea to determine what the purpose of acquiring it is.

If you are considering applying for another credit card it is good to analyze them and look for, according to these objectives, the product that offers the most benefits.

Once you evaluate these factors it is possible to make the decision, although the amount may vary, many experts agree that the indicated number is 3, it does not apply to everyone nor is it unquestionable, there may be different elements that increase or decrease that amount.

Why 3 credit cards are ideal? It’s simple, with these 3 it is possible to cover all your needs: one can help you with day-to-day purchases, another can help you with an unforeseen event or emergency and finally, one that is for specific purchases.

Consider that by increasing the number of credit cards you are at risk of acquiring more debt than you can cover, you can more easily forget cut-off or payment dates and be tempted to use one when you have run into another. What do you think about this idea, do you have an ideal number of credit cards? I’m sure we all have some number based on our experience.

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