We tell you what benefits you can obtain by opening different credit cards, but also the risks that exist of indebtedness if you do not face the payments derived from their possession.
More than science, it is the economy that dictates how many credit cards a person should have, taking into account many aspects such as socioeconomic status and also what they are using them for.
There is no magic formula to discern how many credit cards are the perfect ones to have , but it is clear that with so many cards on the market with juicy rewards and bonuses, it is likely that you have accumulated a few in your portfolio. Having more or fewer cards will not affect your credit score up or down, since there are other more important aspects such as our economic health and paying all your bills and loans on time. But if you go overboard by having a lot of cards, chances are you could fall into debt traps.
Speaking about US data, it is pointed out that they usually have around 2 to 3 credit cards per person , although far from the person who has the most credit cards in the world, and that is included in the Guinness Book of Records: 1562 cards in his power.
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And it is that in the long run, our credit score has more to do with our ability to pay bills on time, the amount of credit that we are using every month and the available balance associated with each of those cards . In this way, whether you have two cards or 20 does not matter a bit for this score because the managers value other types of factors such as your general economic health.
A greater variety of credit cards could offer us more benefits to obtain different reimbursement rewards for gasoline and food, and combining other credit cards can be beneficial to cover discounts in various spending niches.
And it is that there is no all-in-one card, and there will be credit cards that offer you certain benefits and protections, and others that offer many other rewards that the previous one does not offer you. In the end, the equation is the same: each person usually has an average of two credit cards, associated with his two main banks.
These protective sleeves prevent unwanted payments on contactless cards that use RFID or NFC. Thieves will not be able to make charges by bringing a reader close to your wallet or bag.
But while having a couple of cards is normal, going over the line can put you in debt. Maintaining a credit card is not entirely free since you must meet a series of requirements previously dictated by your bank . Now there is a policy of increasing commissions and requirements for card users, so you should read the small print carefully when signing the contract for your new credit card.
In this way, it depends a lot on your economic health, the type of job you have, the society in which you find yourself and even the reason why you use this type of card, in addition to paying for the basics. One thing you must be clear about is that banks do not give anything away, and sometimes you must assess whether it is convenient for you to have certain bonuses or rewards, putting your long-term economic health at risk.
These are some of the benefits of credit cards:
- You will be able to pay for that purchase or that “whim” month by month in a comfortable way.
- Credit cards are linked to several very interesting payment methods such as full payment at the end of the month without interest or deferred payments depending on your repayment capacity. This will allow you to choose, at all times, the one that best suits your situation.
- Many credit cards associated with commercial establishments such as appliance stores, book stores, technology stores, supermarkets, etc., allow, on some occasions, the customer to make purchases in said store and defer the purchase with 0% interest .
- Credit cards usually have linked insurance with greater or lesser coverage. The most common insurance associated with credit cards is travel or accident assistance insurance, which applies its coverage provided that the payment for said trip has been made using the card.
- Credit cards are the passport to be able to buy in absolutely all the establishments in the world with total confidence and security. Although it is hard to believe, there are some places in the world, such as the US, that do not accept payment by debit card in some of their establishments. The credit card allows you not to carry cash and pay for your purchases while traveling and, furthermore, choose how you want to pay: deferred or at the end of the month.
- Some credit cards associated with current accounts or payroll accounts, usually return a percentage of the money available when the payment method you have chosen is in installments.