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Limit your Credit Card Count
You tend to keep on taking credit cards as each credit card company comes with a promise of lower rates, lower fees and added benefits. On an average most Americans carry between 5 – 10 credit cards, sometimes even reaching a level of 50. This can have a bad impact on your credit score. There is no thumb rule of deciding how many cards you should have. But the number depends on your spending and repayment capacity. Higher the number credit cards, higher will be the risk of negative impact on your credit score. You can have cards like Visa, Master Card, American Express or Discover as these cards are accepted by most of the merchants. If you pay very month without fail, go for cards with added benefits than low interest rate. Always keep your debt ratio below 50%. Ideally keep your balance low and pay off the money regularly. With too many cards in hand, you tend to forget the payment date and end up paying late payment fees. Bankrate.com Reports:
Steve Rhode, president of Myvesta, a nonprofit consumer-education organization, agrees, saying that each time you open a store credit card, 20 points are taken off of your credit score because he says, "Historically, store credit cards are issued to anyone with a pulse. They issue credit cards to people who otherwise can't get credit."
Read More: How Many Credit Cards Should You Have?
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