Is it bad to have more than one credit card?

Question

Do you get better credit by charging a little bit to each card, rather than using just one?

Answer 1

In order to have the highest credit rating, you want to have a lot of credit but use only a small portion of it. To get the best credit have a few credit cards, no more than you can keep track of (I have 2 - when I have 3 it confuses me) and don't get your balances near the max. Keep them less than 30% of max.

I use this rule of thumb........For my monthly payments I pay 11% of the current balance each month. That way I'm always paying half the card off every 6 months. AND....I don't use the cards. If I do use the card for a purchase, I pay all of that purchase that month and still 11% of the balance.

If you can't afford to pay 11% of the balance each month, you have too much charged and you need to stop using it.

Once a year or so I use it for a major expense. When I'm diligent about paying the above system, that's not a problem.

Answer 2

most people are better off with just one ---
I have a credit card and a debit card....that's enough for me.
as long as you pay off the bill each month and you aren't struggling with going on shopping sprees - if two works for you - then go for it.
having too many credit cards isn't good for your credit score --- paying the full amount or above the minimum is a good thing to do---

In terms of the balance on the credit cards you hold, the ideal range is between 25% and 50% of the available credit on each credit card. Once you pass that level, potential creditors begin to view you as a risk for repayment, in the event you encounter a major financial obstacle, with your ability to repay falling as your debt rises. If you make a major purchase that surpasses 50% of your credit limit, it is a smart decision to split the purchase between two cards. Being able to do this is one of the benefits of having more than a single card. Lenders do not like to see that your credit card is almost maxed out, as that causes them to consider you a risk – someone who is using too much credit and has trouble paying off debt.(creditcards.com)

Answer 3

Yes you do, but you need to realize the risk of temptation to charge the limits on all those cards.
Use them "wisely"...don't treat credit cards as "spending money you wished you had".
It's extremely easy to get yourself in credit trouble and you could end up having a miserable life trying to pay off credit card debt that is impossible to do because of the high interest rates.
That's another thing...you must check your cards and see what kind of APR or interest you're going to be paying...typically they could be anywhere from 12% to 25%....you do the math.
e.g. for every $100 you charge, you may be required to pay back $125.

Answer 4

NO! you should have a multiple of credit cards. But, not too many!! 2 or 3 may be best. So that you have one for emergencies and the others you can alternate the spending. You should never keep them at there maximum.

Answer 5

My advice is to only have one credit card. Wether or not you have multiples makes no difference on your credit score. As long as you are paying minimum balances your credit score will go higher, and it also looks better if you can pay larger amounts and pay it off quicker too!!! Also if your credit card gets stolen you only have one business to call to cancel the card rather than several businesses.

Answer 6

You can have more than one. It's all about your payment history and your earning.

If your total credit limit far exceeds your income, credit reporting agency can consider, you have a potential to go beyond your means - thus reducing your score.

More important question is, can you manage your own credit? If having more credit cards, thus having more available credit, opens yourself up for too much temptations, you should not do it.

Answer 7

3-5 are good, 2 major & 1-2 department store cards. Make sure all cards have no annual fee or don't get them. Try to always pay in full and try yo keep a zero balance. Never allow cards to work you..YOU work the cards for rewards free gas, air miles etc...WORK them for all their worth and NEVER pay %...that's my game plan. The card comapnies can afford to keep you because they make money on your purchases and they know most suckers will at some point run a balance..don't fall for that

Answer 8

Yes and no, charging too much can hurt your credit, but having more positively rated accounts can help your overall score. Having steady credit for a longer period of time will help you out better than more credit.

Answer 9

On card or many...

Doesn't really matter, if you have the money to pay them off, when the bills come in.

But if you are carrying a balance, and paying that high interest rates, then by all means, the fewer the better.

Answer 10

I have 4, with a balance on one. All major cards, all high limits. My score went down by about 20 points when I got the newest one. My score is high, so I'm not concerned about it.