How Many Credit Card Deals You Need?

Summary: The entire American credit card debt is still growing. One of the reasons is the fact that most Americans have from five up to ten credit cards. But do we really need so many credit cards? And doesn't the number of credit cards you own affect your financial opportunities?

Day by day we get lots of credit card applications in our mail boxes. Banks and credit card companies offer credit card deals for different purposes to fit everyone: reward credit cards, business credit card deals, student credit cards and etc. No matter what your credit history is, you can always find an offer for you. Using credit cards, we can earn cash back, free movie tickets, discounts, free flights and hotel stays, etc. That is why having one more credit card offer in your mail box it is so easy to yield the temptation to apply for a new credit card deal. But there is a question: how many credit cards you need? Can the number of credit cards you own affect your credit history? The researches show that most Americans use from five up to ten credit cards. An average American family owes credit card companies around $12,000 when an average household is only $ 50,000. Their credit card debt makes 24% of the annual income and it is without mentioning their car loans and mortgages. Isn't the statistics is alarming? The main question is: How many credit cards you need? Financial experts believe that two or three credit cards are quite enough and advise credit card owners to limit the number of credit cards they own. Keep in mind, that your outstanding balance is very important to credit card companies. The balance should be between 25% and 50% of the available credit on each credit card of yours. If you overdraw your balance the potential creditors will hardly have much trust in you. Before applying for one more credit card, consider the fact that the fewer the number of credit cards you owe, the easier it will be for you to keep control of your balance. Just think, having 3 reward credit cards, 2 gasoline credit cards and a business credit card dealat the same time, you can have many difficulties in keeping under control of your debt on all these cards. However, if you own only two or three cards, you will be able to keep track of your spendings and will know exactly where you stand with your balances! Using fewer credit cards, you will feel that your credit cards work for you but not you work for them. It can also help you to decrease your entire debt. So, consider your needs and purposes carefully before applying for a new credit card in order to get the card that will fit all your needs. Mind the most important is not to have many credit cards, but to get a credit card that will provide you with all the features you need.