Too much plastic?
July 28th, 2005 | by mbhunter |This MSN Money article poses the question
How many credit cards is too many?
Well, it depends. They suggest two to six — not fifty, but not one either. If you have too many cards, you could go crazy, rack up $357,000 in debt, and default on it, so you’re a bigger credit risk. If you have only one, you risk having a large percentage of your available credit used up — also bad. Also, if you get a bunch of credit cards at once, the average age of your accounts goes down — bad. Cancelling a bunch at once raises your debt-to-credit ratio — also bad.
Of course, you still have to pay on time, and not run up your credit close to what you’re allowed. But the other things matter, too.
One Response to “Too much plastic?”
By WOW! Credit Cards on May 16, 2007 | Reply
Here’s a helpful article:
How many credit cards? What’s the right number?
I only have 2 credit cards. But I would say it’s probably safe to have 3-4. It really depends on your spending habits– and how much time you have for budgeting and managing your credit cards. Personally, I don’t have the time to monitor more than 1-2. But for some, there could be some benefits to having a few extra…