Credit Cards: the More You Have – the Better?
July 28, 2008 on 12:51 pm | In BusinessEvery day we receive tons of different credit card applications. Banks and credit card companies assure that they can satisfy every consumer’s needs. They offer reward credit cards, business credit card deals, student credit cards, gasoline credit cards, etc. Despite the credit history, everyone is promised to get a credit card deal of his/her dream. Credit cards can give us cash back, rebates, free movie tickets, discounts, free flights and hotel stays, etc. No doubt, everyone has ever felt tempted to apply for one more credit card in the pursuit of the best deal. The statistics shows that most Americans own from five up to ten credit cards. An average American family owes credit card companies $12,000 when an average household is only about $ 50,000. Credit card debt of an American makes 24% of the annual income and it is without mentioning car loans and mortgages. Financial experts are concerned about ever-growing American credit card debt. The question is: How many credit cards an average consumer need? Is it better to use as many credit cards as you can get? And can the number of credit cards you own affect your credit history? Financial experts say that two or three credit cards are quite enough for an average family. The main reason is your outstanding balance. Outstanding balance is one of the first things credit card companies pay attention to. Keep in mind, your balance should be between 25% and 50% of the available credit on each credit card of yours.