How many credit cards *should* you have?

MrsKrepsly

If there was an ideal amount of credit cards one person should hold, how many would it be?

I currently have classic capital one, progress capital one and natwest. Once I've paid off the classic card I'm going to cancel it and stick with the other two. If I can ever manage to get into mainstream I'm going to cancel the progress card too.

Ideally it would be nice to have 2 decent credit cards.

What is the ideal number of cards though?

pugzy

I think it's all personal to each individual based on how easy they find it to pay off whatever they need. I think that if it's ever possible, don't have a credit card at all to avoid temptation, but if you do have one, just tart it at the end of every 0% APR deal so if you ever do need it in an emergency, the implications of high interest being slapped onto it are minimal.

I only ever got a credit card because I moved jobs and needed money inbetween paydays from each job, that's how I got mine racked up. Only had a loan before that. Now I have applied for one for work expenses only and another with MBNA for a 0% Money Transfer to pay off my loan at a lower interest rate. Otherwise, I'd have none!!!

Paul_Herring

MrsKrepsly wrote: »

What is the ideal number of cards though?

Probably two. One Mastercard, one Visa. Both paid off in full each and every month.

1) You get Section 75 coverage on credit cards which you cannot get using any other method of payment.
2) You have a 'spare' in case one fails to work for whatever reason, or you want to buy tickets for the Olympics or some other event that one of them manages to wangle a monopoly on card payment methods for.

guesswho2000

Paul_Herring wrote: »

Probably two. One Mastercard, one Visa.

^Agree with this, I found abroad in certain places that one wasn't accepted over the other. Also, Visa have the chargeback scheme, which provides protection for purchases under £100, whereas S75 only applies to those over £100, Mastercard do not provide this.

I'd probably recommend a Visa over MC for this reason alone, if you only had one card and had the choice.

lisyloo

It's dependent on circumstances.
I'd probably go for two - one for cashback and one for foreign spending.

chexum

Depends - if you can keep two cards in use, and well handled for a few years (ideally paid in full each month), then your credit history is already perfect.

If your income is higher, you may be able to get meaningful limits for more cards. For example, if you held five similarly for a few years, then practically, in a year, you may be able to open 4-5 new cards, as the majority of your credit accounts were open for longer than 1-2 years. But after that, you will need to sit it out and not apply for anything for 1-2 years more - if you close the old accounts, maybe even longer.

If you have 2-3 cards, you may be able to chose statement dates in a way that you can maximise the interest free purchases to always be around 40-50 days, however, to be really effective, you need all your cards to have the maximum interest free period anyway, and there's only a few that are 50+ days.

Juggling this many cards may need quite some discipline, willpower and purpose, however If you just leave them in a drawer, or in your purse, you could be worse off if they disappear, are used fraudulently or start charging dormancy fees.

I'm not saying you would be responsible for fraud, but it will be still taking your time to sort it out.

In the end, I would say you "should" keep as many cards as you are willing to handle continuously, and as many as many offers you want to get at some point in time in the far future. In this sense, 1-2 cards for a few years is just perfect for a mortgage ahead, for example.

nyatara

well,if you are not financially free then the total number of credit cards you should have is zero.why? Because credit cards tie a noose around your neck,you struggle to make monthly payments yet all you do is live beyond your means.while every month you rush to make those credit card payments you never feel the burden easing up,in the long run you will be caught in a debt spiral.if you can't make the payments do not take the credit.

Niksan

In my case, one, mainly as a tool for online purchases/fuel etc, as I'd sooner not use my debit card, as I'd sooner have the hassle claiming back fraud on CC than the hassle with fraud on my DC having an impact on possibly missed DD payments etc etc.

alleycat`

Niksan wrote: »

In my case, one, mainly as a tool for online purchases/fuel etc, as I'd sooner not use my debit card, as I'd sooner have the hassle claiming back fraud on CC than the hassle with fraud on my DC having an impact on possibly missed DD payments etc etc.

^This. Same reason as above.

chattychappy

If you spend periods overseas (really I mean a few weeks or even months, not short holiday trips) then at least 3 or 4 - preferably ones that don't load for forex.

feeling-good

I would have to say you should have no "debt cards" as that is what they really are