3 Important Points on Managing Your Credit Cards and Credit Score Rating

With credit card providers and banks offering pre-approved credit cards and rewards, signing up for one might not be a hard decision to make. But is it really wise to have multiple credit cards?

Here are some points to consider on having the right number of credit cards and protecting credit score: 

  1. Credit Score

A high credit score rating is important if you are looking into applying for a home mortgage or a car loan. Questions have been raised about how to maintain a good credit score and if having few or many credit cards really has an impact on one’s credit score rating. FICO, the credit score expert says that people with seven credit cards are the ones who usually enjoy this status. However, the ideal number is at least four which are current and can have or not have balances. The remaining three can either be closed or have been dormant for some time now.

With regard to maintaining a high credit score, experts advise that these scores are not really based on the number of credits cards but on these three important aspects; credit history, payment records and current amount of debt.


  1. Credit Card Application 

If you already have two credit cards and would like to apply for new ones, set aside enough time intervals. Most people with high credit scores who have multiple cards usually wait for years to apply for new ones. Although being approved by many providers is a sign that you have good credit, applying for credit one after the other is not good and might result to disapproval. Good debtors have well-established credit histories.

  1. Number of Cards 


Four or seven credit cards are fine so long as you know how to handle them. But if you want to be on the safer side, try cutting it down to four and distribute your expenses among them so you can schedule your payments. Also, try to pay the whole amount each billing cycle to prevent incurring interest rates.

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