How Many Credit Cards Should I Have???
The question has been asked many times “how many credit cards should a person have?” Because everyone has a different credit history, the answer will be different for any one individual. While there is no exact answer to this question, I will try to explain how you can figure out what is right for you.
First, you need at least one. In order for the FICO scoring model to calculate debt utilization, you need to have an open revolving account reporting on your credit report. Next, you need to calculate what your average monthly spending habits are when using credit cards. To optimize your maximum credit score potential, it is important that your monthly credit card balances are less than 10% of your total available credit. For example, if you carry a $100 balance on your credit card(s), you need at least $1000 in available credit. This can be one card with $1000 limit or two cards with $500 limits…
In other words, as long as you have at least one credit card, the focus should be placed on using the card(s) responsibly—not the number of cards. Budgeting to keep your balances below 10% will help to ensure you have the best possible credit scores.
As a credit expert, I provide credit education helping people understand how to build and improve their credit scores. If you, or someone you know, is having issues with credit, contact me to find out how I can help.
Kevin D. Weier
Credit Coach, LLC · Three Point Place, Madison, WI 53719
Phone: (608) 268-6677 · Cell: (608) 774-2434 · FAX: (866) 311-7478
Web: www.creditcoachwi.com · Email: [email protected]
