Avoid credit crad fraud


What's the Ideal Number of Credit Cards to Have?

One of the most often asked questions about
credit cards is 'what's the ideal number ofThere are other reasons to limit the number
credit cards to have?' The question is askedof credit cards you carry as well. When you
as if there is a magic number that will tellhave one credit card, it's easy to keep track
lenders that you're credit-worthy withoutof your spending and your account due dates.
hacking away at your credit rating becauseAdd a second credit card, and you're still
you have too many credit cards. The realityall right - but what happens when your one
is  not  that  simple.credit card turns into 15 in your wallet? At
that point, you're at serious risk of
The ideal number of credit cards is a veryaccidentally missing due dates out of sheer
individual thing. It depends on a combinationforgetfulness - and that will kick up your
of factors, including what type of creditmonthly charges, sometimes on more than just
card each one is, your monthly income, thethe  affected  card.
amount of credit available to you and your
history of making payments on your creditSo what is the ideal number of credit cards?
cards. According to the NS&I QuarterlyHere are some rules of thumb to help you
Savings report issued in June, the creditdecide if you have too few, too many or just
card UK market is doing booming business,enough:
with 4.1 credit cards for every adult in the
UK.  So  is  4.1  the  magic  number?1. Your monthly credit card payments should
be  no  more than 25% of your monthly income.
In most cases, say financial experts, the
right number of credit cards is between 2 and2. If you've forgotten to make a credit card
6. Of those, you should have at least onepayment because you just MADE a payment - but
major credit card - Mastercard, Visa orit was to another company - you probably have
American Express - as those are acceptedtoo  many  cards.
nearly everywhere you go and are the most
genuinely helpful in the case of an3. If you can only make the minimum payments
emergency. Other credit cards you may carry- and sometimes not even that - then you
include a store credit card - whichshould consider consolidating some of your
generally charge interest at whopping ratesdebts onto one credit card. UK companies
close to 30% - and a gasoline card. Moreoffer many balance transfer cards that can
important than how many cards you'rehelp  you  consolidate  your  debts.
carrying, though, is how much you owe on
them.4. If you're not sure which cards are at or
close to their limits, you probably have too
One of the things that factors into yourmany.
credit score is your debt/credit ratio. The
credit bureaus compare how much credit you5. If your total debt is less than half of
have available to you in relation to how muchyour total available credit, you're probably
you're currently using. If you have onein  pretty  good  shape.
credit card with a credit limit of £1000
and you're carrying a balance of £500,There are some really good comparison sites
then you're using 50% of your availablewhere you'll find all the best deals on offer
credit. Is that good? That depends on thefor any credit card UK companies offer. If
source of your information. Some lendersyou're looking for another credit card, your
would consider 50% credit usage to befirst credit card, or a balance transfer
unacceptably high. For others, it's right incredit card to reduce the number of cards
their target zone. The most conservativethat you carry make sure you thoroughly
lenders balk at a debt/credit ratio aboveresearch the options first of all.
25-30%  of  your  available  credit.



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