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Suppose, you’re checking out at a store, and an offer pops up on your screen. You can save tons on your purchase if you qualify for the store’s credit card.

If you already have a few other cards, does it matter if you sign up for this one? How many cards is too many? What if you already have multiple cards and aren’t close to achieving credit card debt payoff? How do you keep track of all of your cards? Here is what you need to know about having multiple credit cards.

What It Means to Have Multiple Credit Cards

Much like “what is a good APR for a credit card?” whether you need multiple credit cards is subjective. The answer to both is “it depends.” For APR, it’s dependent on your credit score.

For the number of credit cards question, the answer is based on how well you manage your money, how well you can juggle multiple card payments, and how much you are willing to have as a line of credit. More cards mean more spending power, but it can be easy to accrue debt quickly. If you are good about keeping your balance low or using your cards sparingly, though, having multiple cards open with low usage could be a positive credit score factor.

How Many Credit Cards Is Too Many?

Unfortunately, there is no firm number for having too many credit cards. If you can’t manage two separate payments, then the answer might be two for you. However, if you can manage multiple payments, you could have three or four credit cards if you can keep your usage low or within your personal limits. It mostly depends on how much you trust yourself to pay the cards and not keep usage high.

The Advantages of Multiple Cards

With multiple cards, you can earn different rewards. One card might help you get a complimentary flight, while another might get you credit at a specific store. Additionally, with more credit cards, the higher your credit line, meaning if your balance stays the same, your utilization will drop, in theory. Multiple cards mean you can also have a backup card if one card is stolen or lost. You could have some financial flexibility with several cards.

The Disadvantages of Multiple Cards

There can be disadvantages, however. Some credit cards have annual fees. With more cards potentially come more fees. It also makes it harder to organize, and it’s easier to miss a payment.

Multiple cards also make it easy to overspend, racking up debt that you can’t easily pay off. If you apply for a few cards in a short time, you also look riskier to credit issuers, and you will have multiple hard credit checks. Hard credit checks are a negative credit score factor, so it’s best to avoid them if you can.

About Tally

Tally believes that being debt-free should be attainable for everyone. The financial playing field is intentionally complex, and the Tally app was created to level it. Qualifying users can consolidate their credit card balances with Tally, helping them be better off financially to plan for the future. Unlike other financial brands, Tally tries to forge personal bonds with people. This helps Tally to better help and support its customers. It only takes a few minutes to get started with the Tally app. Try their credit card interest calculator to see for yourself. When you need help with financial matters, turn to Tally.

Get help managing your credit cards and other financial accounts at https://www.meettally.com/

Original Source: https://bit.ly/3RvW87T

Disclosures: Lines of credit issued by Cross River Bank, Member FDIC, or by Tally Technologies, Inc. (“Tally”), NMLS #1492782 (http://nmlsconsumeraccess.org); see your line of credit agreement. Lines of credit not available in all states.


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