Before reading this article, peep into your wallet. How many credit cards is it carrying? This question must get a deep thought. The 21st century is becoming a plastic age. Having money in wallets is an old thing now. It is the time of Credit Cards. Single swipe and you will get your bills cleared. Banks and NBFCs are also attractive consumers by rolling out engaging Credit Cards in association with the organisations. You can simply choose a credit card that amuses your lifestyle. The financial companies have made the means of availing a Credit Card very easy with least documentation. There are various cards offered by banks like Frequently Flyer Cards, Dining out Credit Cards, Platinum Credit Card, Student Credit Cards, etc.
How many credit cards should you have?
So Many Cards – Too many spending choices
If you own too many cards, it indicates you have many possibilities to spend the money. You face many transactions that may tempt you to swipe your card to get reward points or reward vouchers. By executing so, you end up wasting money on a wish to earn prizes. Too many credit cards are like too many holes for money.
Also Read: Which Credit Card matches your lifestyle?
How to choose the number of cards?
You can control your costs better than anyone else because you know your budget and conditions properly than anyone else. So, think with a calm mind about your requirements and costs. Take out all your cards, sit with yourself, and rank each card based on your needs. Separate the cards that you have bought only to earn some points or gifts. Plan your expenses with the card limit, and don’t forget to add some emergency expenses. It will assist you to decide the number of cards you should own.
Pick the fittest one, smartly.
Choose the card that is completely suitable for your requirement. Consider all points like interest rates, credit limit, reward point schemes, annual fees on the menu, etc. Select the cards that can satisfy your expenses and provide you with financial stability. Cancel other cards and give a lighter feeling to your purse.
How does a Credit Card change your CIBIL Score?
CIBIL Score is a vital aspect of anyone’s credit report. It can determine your fortune when you ask for a loan. For the support of your loan application, you need to have a CIBIL score larger than 700. A credit card makes your credit history. You should pay your bills timely and should not default in any case. It will make your CIBIL Score healthy. If you have a credit card, you should not exceed more than 30% credit utilization ratio. Utilize the credit limit carefully. It will build your credit score and make your financial history disciplined. If you have many cards, you need to do the tracking of each card. You should pay a timely for each card. Tracking and maintaining fewer cards is comfortable rather than getting confused with a large number of cards.
What is the Magical Number that you should have?
Now, this decision is all yours. You should decide the number by considering all the points. According to experts, the number of cards should be between 3 and 5. The perfect number is 3. You can use two credit cards to meet your needs and one card for emergency financial crunches. You can also track and manage three credit cards easily. One thing that you must not forget is to set a 30% spending limit.
So, use your credit cards wisely. Use the plastic money to cherish life, not to get into any dilemma. Your wallet also has a right to look good and lighter. So make your wallet lighter by availing a magic number of cards.