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How many cards do you really think you need? If you have made a wise choice the very first time you every got a credit card, and have been managing your credit wisely, the answer to the question should be just one card. Ideally, everyone should have just one credit card, because having only one card means that you are managing your finances wisely enough not to rely on credit too much for your purchases. By needing and sticking only to one card, it shows that the credit limit on that one card is enough for your needs, which is only possible if you have enough cash on hand and your savings account to cover your budget and most emergencies. The funny thing is that these days, with the glut of credit cards in the market, and the almost guaranteed credit card approval, cardholders usually have more than just one card. And though most know logically that one card should suffice their needs, if you ask people how many of their existing cards they need, they’ll probably tell you all or at the least more than one. The reason for this is that most have become so dependent on using their credit cards for their daily purchases that they end up needing the card just to get by. This is a sad reality that is so common nowadays. If you are one of those that have several credit cards, maybe it is time to assess how many cards you really need and just stick to those cards. Some of the things you should consider when choosing which credit card to keep include: 1. the age of the card - Always keep your oldest credit card for your credit history’s sake. Creditors prefer longer credit histories, so keep your oldest card even if it doesn’t have the best of terms. You can always use your other cards to avail of low interest rates. 2. the card with the best terms - This one is obvious. Keep the card with the lowest interest rates for purchases, as well as other credit card transactions such as balance transfers, in order to keep the cost of borrowing as low as possible. 3. the card with the largest credit limit - You should keep with emergencies in mind. Your goal is definitely not to reach your credit limit, but only to have the peace of mind knowing that you have a big credit limit that is easily available at any time. Peter Carville is a freelance article writer who writes for Financial Facts about the current financial news and the credit crunch.
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