Tuesday, 21 September 2021

How many credit cards should a person have

Credit cards should a person have - There are no standard rules for how many credit cards you should have.

How many credit cards should a person have

If you can afford to pay your bills each month having multiple credit cards for special uses is allowed. If you have problems with problems, it is better to focus on yourself from debt.

Consistent and obedient use of credit cards to pay bills will increase credit scores so that banks are more willing to provide credit.

If used responsibly, credit cards can be a very helpful means of payment. Credit cards can build a credit reputation and get various lucrative benefits.

Related - How many credit card should i have

Here is a How many credit cards should a person have

In America, the average person has 3.1 credit cards with an average usage of $ 6,354 or Rp. 85 million (assuming US$ Rp 13,500) for all cards.

But how can you tell that you have too many or too few credit cards? Is there a certain amount?

The appropriate amount really depends on your credit goals and discipline in billing every month.

If you're consistent with each charge each month, creating an additional card can actually improve your credit score. A user's credit score is determined by the credit utilization ratio, which is calculated by dividing the existing balance by the credit card limit.

Ideally, you leave 30% of your available credit limit. As a result, when you open a new credit card, the number of credit limits you get can also increase.

If your habits stay the same, your credit utilization ratio will increase automatically. Credit cards also offer various benefits, such as flight miles, hotel points, and cash back.

When used regularly, a card that fits in style can make a lot of money. However, credit cards can be tempting to spend more.

If that's the case, then it's better to have fewer cards, or even not use them at all.

"If you have problems with overspending or credit cards are a temptation, then you should not make additional cards,"

The effect will never be worth it if you have to go into debt to get a credit card bonus or try to improve your credit score.

 If the answer is yes, then you can create additional credit cards and use different cards depending on the usage. If the answer is no, it's better to prioritize yourself from debt.