2007-08-23 15:04:54 · 14 answers · asked by Little Witch 2 in Business & Finance ➔ Personal Finance
The people who say you should only have one credit card are technically right in that if you pay off the card every month, you have no interest fees and avoid all the card troubles people around the country are having.
But one IMPORTANT thing you must consider is that part of your credit score is your total available credit... that is, the higher your credit limits on each of your cards, the higher your credit score will be. For example:
A person with a card limit of $1000 and pays off their balance every month will have a decent score (650-700), but they only have one card, so their score goes down since they only have $1000 available in their credit history. A person with 5 cards totalling $10,000 in credit limit with low balances on the card will have much higher scores (680-750). They don't neccessarily pay off the balances every month, but they have a lot more available credit than the person with just one card. Thus, having a manageable amount of credit is the best thing for you.
The average number of credit cards a person has is around 7... those include gas station, department store, regular credit cards, etc. Having between 3-7 is okay... anything more and your scores may go down for applying for too much credit that you don't have the ability to pay. Just remember that your credit score isn't just about paying off your card balance every month. Sometimes it's worth it to keep a small balance on your card to show the credit card companies that you can be a good customer for them and pay them some interest.
2007-08-23 17:45:33 · answer #1 · answered by Paris P 3 · 1⤊ 0⤋
Between my husband and I, we have 14 credit cards. We do plan on closing a few, but right now we are in the process of buying a house. I would advise 3-5 for one person, but only use 1-2 of the cards. Out of our 14, we only use 2-3 at a time. Alot of people on here will tell you that credit cards are bad, blah, blah, blah. It's all about how responsible you are. All you have to do is pay your bill ON TIME and NEVER spend more than 50% of your credit limit. My husband and I have did this since we were 18 and our credit scores are >700, we just bought a new car and we are buying our first home at age 22. I hope that helps.. Good Luck!!!
2007-08-24 02:07:33 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Avoid too applying for too many credit cards all at once. When ever you check your credit score it leaves a mark. If you have too many marks too fast lenders thing you've hit a financial wall and are headed for trouble. One case that comes to mind is about a first time home buyer. They were approved for the home loan but it hadn't been finalized. The buyer thinking he was getting a home applied for a credit card to buy furniture. Because the loan had not closed the new credit card application caused the loan to be rejected at the last minute. This one application caused his credit score to drop to an unacceptable level and he lost the house. The moral: be careful with the timing of your credit card applications. Read more from: http://www.credit-card-gallery.com/article/136,Seven_Must_Know_Credit_Tips
2007-08-24 08:09:47 · answer #3 · answered by Anonymous · 0⤊ 0⤋
It depends on how rich you want to get.
When I was 23, I started applying for every credit card application that came in the mail (about 5 a year) until I was 30. I built up over 150K in credit using about 25 cards, and always negotiated with phone soliciters who called me asking if I wanted a "X Bank" Visa or MC. If they offered me a 5K limit, I'd ask for a 20K, and get 12K. And so forth.
I'd use the credit for renovating and down payments on "flips", buying vehicles wholesale and selling them, and eventually buying entire houses on credit.
I was able to officially retire at 31, (6 years ago) from the PCF (positive cash flow) from my income buildings.
So, whoever tells you credit is a bad thing, probably isn't planning on getting rich. Besides, having just 1 Credit card, and either paying it off in full each month, or paying the minimum payment +20% is an excellent way to build credit when you find yourself buying a house one day. We call it credit history, something to be taken very seriously.
Today I can raise about 500K in 10 minutes with my own lines of credit, along with much much more in private money from business relationships I've made with some very rich people along the way.
I started at 17, broke and working at a flea market.
2007-08-23 22:22:56 · answer #4 · answered by Anonymous · 2⤊ 0⤋
Two major credit cards. One for business and one for personal. Of course only charge what you can afford to pay in full each month.
Personally, I have a gas credit card to use for travel -- I don't like giving one of my major credit cards to gas station attendants.
2007-08-23 22:56:05 · answer #5 · answered by bdancer222 7 · 0⤊ 0⤋
dont be duped into thinking yu need any. most interest rsates are so high you willl be seduced into debt load that is unhealthy. get a debit card or amex. pay off in total ea month. develop an atitude that if you cant pay in full, dont buy with the single exception of a home.
2007-08-23 22:10:29 · answer #6 · answered by MrNeutral 6 · 0⤊ 0⤋
None. But, if you must have one then one!
It real easy to get in over your head even with one. Over time they will increase your credit limit, just for the purpose of getting you hooked.
2007-08-23 22:13:57 · answer #7 · answered by Alexandra 3 · 0⤊ 0⤋
i personally think 0 is the best but 1 in case of emergencies is not bad
2007-08-23 22:13:04 · answer #8 · answered by Eyad Adel 1 · 0⤊ 0⤋
1 is the best
2007-08-23 22:11:48 · answer #9 · answered by Anonymous · 0⤊ 0⤋
well i got 50 over 17 years, but only using 2 of em ..
i collect CC
2007-08-23 23:02:00 · answer #10 · answered by Anonymous · 0⤊ 0⤋