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13 Jan, 2017
Savvy Tips

How many credit cards should you have?

Once you apply for one or more credit cards, you will start to see the benefits. Other credit card companies might reach out to you, or you may reach out to them in order to find out about more credit options. Unfortunately, there will come a time when your credit card collection will prove more harmful than helpful.

If you have too many credit cards, your credit score can suffer as a result. Similarly, if you don't have enough credit cards, you can also harm your credit score. Another aspect that can be quite confusing is the way the market constantly changes. This means that the ideal number of cards today might not be so great tomorrow. If you are trying to maintain a comfortable lifestyle while keeping your credit score as high as possible, it's important not to let the stress get to you. 

If you are regularly approached or approved for credit cards, then it's safe to assume that your credit score is quite high. You are also probably making your regular payments which also makes credit card providers more inclined to offer you more credit. By making regular payments and adhering to the regulations of the agreements, your credit score should remain unscathed. 

According to statistics, those with the best credit scores are those who hold seven cards. These include cards that are open, closed, those with balances, and those without balances. That said, you can safely owe on up to four of these cards, but you should not owe on all of them.

Another important point to remember is that there's no race to collect seven cards. It's quite the opposite, in fact. Pacing yourself is an important part of financial success. Many people who have seven credit cards have opened them over a period of twenty or more years. When opening card after card, this is a major red flag and tells credit card providers that you might not be all that capable of managing your finances.

Don't forget about the importance of spending wisely! No matter how much credit your provider gives you, you should never spend more than 30% of the total credit amount of that card. Not only does this make your repayments that much more manageable, but it also leaves plenty of room in the event of an emergency. In addition, it bodes well for your credit score.

Finally, take a look around Wallet Savvy for detailed information on the best Canadian credit cards. By choosing the right credit cards with the best benefits and the most affordable fees, you can get the best deal. Take all fees into account and read all the terms and conditions before signing up for any credit card! If there's ever anything that you don't particularly like or understand, don't be afraid to ask your provider or even walk away and look elsewhere!

 

 

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