Do you have a credit card, or a whole pocket full?
Once upon a time having lots of cards was seen in some circles as a kind of status symbol – showing how large credit you had. Unfortunately, many have had problems over because they have actually used these cards.
Others, fearing their own tendencies to overspend, choose to have just one card.
Neither way is the best answer. Life is not only more convenient, but safer and more economical when you bring at least 2 different credit cards. Just remember to control your own spending.
Experts advise to have a card that usually has a zero balance. They even recommend keeping the card in a safe – if you become the victim of a fire of a flight home or you will have this line of credit as a safety net to get through the day or weeks starting chaos. I say “usually,” because in the credit card climate of today, you must use each card at least once a calendar quarter, just to keep active. Card issuers do not like the charge transport inactive cards and were closing the accounts right and left.
Another reason for multiple cards is so you can keep exclusively for online shopping. This makes it easier to spot a dummy load and get it removed promptly. Moreover, you need not worry about all your account numbers at risk against piracy.
If you use your business cards, you should have a card that is used for anything other than business expenses. If you qualify, getting a “business card”. If you are careful to keep them separate fee and must balance, your accountant will probably allow you to deduct the interest, but if you mix business and personal expenses, they will not. Business cards often send a year-end summary – a good tool to make sure you are deducting all allowable expenses.
Now consider the rewards – you can have a card that rewards your office expenses, while another gasoline purchases reward or restaurant meals. Keep track of what is offered and use the cards in their place.
Several cards also boost your credit score – as long as you do not let your charges on any increase in a card over 30% of the credit limit in a month.
Finally, if you have several cards and a card issuer suddenly decides to cut your credit line or increase your interest, you will have another place to turn.