Although it is exciting to have in your hands your first credit card, Do you think it is a good idea to have more than one? And if so, how many do you think you can have? To help you avoid falling into it indebtedness for having too many credit cards, here we tell you more about them. Find out if it is good or not to have many cards:
Is having credit cards good?
Credit cards are one way you can start build your credit history; so we can say that it is good to have them, although this will depend on using them responsibly. That is, for example, you never go into debt more than you can pay each month. Experts recommend that the payment of our debts, each month, does not exceed 30% of our income.
How many credit cards should you have?
With a credit card it is enough to start your credit history and show the banks if you are a good or bad payer. This will depend on whether, in the future, you are a candidate for better loans or credits (for example, a vehicle or mortgage loan).
Although many people have more than one card, some specialists mention that the ideal is to have a maximum of 3, two of which should be from a bank and different systems, for example, if one is VISA, the other MasterCard so that, in In the event that one system fails, you have the backing of the other. Regarding the third credit card, it can be from the store you always use (for example, a supermarket, department store, etc.). In all three cases, try to choose the credit cards that offer you the best benefits.
Is it bad to have more than three credit cards?
Specialists warn that some financial institutions do not see favorably that a customer has more than five credit cards. However, if you do have them and the sum of the credit lines does not exceed five times the client’s monthly income, it is not usually a big problem. For having multiple cards to be an inconvenience, more than one of these conditions would have to be met:
- Consume almost all or all of the credit line of each card.
- Make cash withdrawals with your credit card.
- That the sum of the credit line of these exceeds the debt capacity.
How to avoid having too many cards is a problem?
To avoid having multiple credit cards in your name from being a problem, you can take the following precautions:
- Avoid reaching the top of your credit cards.
- Pay each one of them on time.
- Cancel those that are not really necessary; since, if you use it only once in a year, you will end up paying the same membership.
- Avoid paying the minimum on your account statements. Always pay the monthly fee or at least double the minimum.
- Know your debt capacity
- That the payment of all your debts never exceed 30% of your monthly income.
If you already have many credit cards and have fallen into the vicious cycle of unpayable debts, don’t worry, we can help you! We have the Pool program by which we massively negotiate your debt; in this way we obtain better conditions for the settlement of it. Contact us so that our advisers can evaluate your case and propose the program to suit you!