- Are your cards costing you more in annual fees than the rewards?
- What will the effect on your credit score be?
- Are you paying too many late fees because of an overlooked statement?
- Are you consciously selecting the right card for the purchase to maximize rewards?
- Are you using the appropriate cards for personal and business expenses?
The amount of credit cards that you have in your wallet is a common question to which there is no right or wrong answer. The question should be how am I using the credit cards and more importantly do I have more than I can manage responsibly. The Pro’s and Cons of credit cards is covered in this article by nerdwallet and at one end of this highly debated topic is the personal finance experts and at the other is you, your friends, and other self-proclaimed experts. The advantages of carrying multiple cards is that you can maximize rewards such as no fee cash back, hotel points, air miles, and donations to a charity of your choice. You maintain flexibility as some cards are more accepted than others and having a spare in case of loss or theft comes in handy. The disadvantages of having several cards is that it adds unnecessary complexity to your monthly bill paying regimen and if you are already stressed about your budget and debt, multiple payments with differing due dates can be a headache. Miss a payment or two by juggling too many and you may see a negative effect on your credit rating. According to NASDAQ, the average credit card user has 3.7 pieces of plastic in their wallets but not uncommon for people to have upwards of 15 open accounts at a time. Some points to consider: