Multiple Credit Cards: How Much Is Too Much?

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Figuring out how many credit cards a person can have will vary from one person to the next. Some cardholders who cannot resist temptation tend to use more than one card to purchase items they do not need or they could not really afford. The fact is, credit cards carry certain risks and if a person is not careful enough, he is likely to find himself in deep financial trouble. Eventually, interest starts accumulating, payments starts piling up and it will be extremely hard to get out of credit debt.

Credit cards are great because it gives cardholders the advantage of making cashless purchase, hassle-free. Additionally, you can purchase items without having to pay for them immediately. However, while cards are extremely beneficial to people because it can easily improve the quality of their lives, especially in today’s world where it is almost a necessity, it can also lure people into unmanageable credit debt. Having more than one card takes a lot of discipline; you need to make an effort not to spend more than you ought to.

Figuring out how many cards you need is hard. You need to consider certain factors such as the lifestyle you lead and your financial capacity. The most logical thing to do is to avoid having multiple credit cards if you know for a fact that it is way beyond your budget.

Another key factor to consider is the fees that come with having many cards. Too many cards can be detrimental if you fail to track your expenditures. Juggling multiple statements makes all too easy to lose track of due dates. Note that late payments can result in interest rates as high as 20%. You are bound to pay more on accumulated interest than the actual items you purchased.

Of course, having multiple credit cards does have its advantage and the most obvious one is that it gives cardholders access to certain discounts or promos from stores that cardholders frequent. There are some cards that include travel insurance, which may reduce a cardholder’s expenses once he travel overseas.

There are cases wherein having more than one can provide more benefits overseas because transactions are much cheaper with a certain card as compared to being used locally. If this is the case for you, then having more than one card is an advantage. If you do not travel overseas regularly then it may not be a good idea for you to carry various cards because you cannot maximize the benefits it provides.

Limiting how many cards you need to have is a personal choice. Before you start signing up, it is best to weigh its advantages and disadvantages as well as being aware of possible consequences that may lead to financial troubles.

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Tina Lee-Almazar | Tinaciouslee

Tina Lee-Almazar is a writer and editor based in the Philippines. She holds a Bachelor’s degree in Broadcasting from Centro Escolar University in Manila. She started out as a production associate at ABS-CBN Broadcasting Network in 2004 before transitioning to creative writing in 2006. Her years of experience as a writer resulted in having considerable knowledge in a variety of writing fields. When she’s not surrounding herself with pretty things or discussing herself in the third person, Tina watches funny cat videos all day.

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