How Many Credit Cards Should I Have? 

According to a Credit Karma report, the average American has 2.5 credit cards. Some have two; for others, it’s three. The number is all over the place, which raises the question–how many credit cards should I have?

There’s no perfect answer like so many other things in life because personal finance is personal. However, you can use some essential criteria as a guide.

Good Practices for Credit Cards

If you use a credit card, be sure to do it wisely. Credit can enhance your financial situation or destroy it. Here’s a list of good credit card habits to build.

1) Use a budget. Use your budget to track credit card spending by category. Don’t spend more than you plan to pay back at the end of the month.

2) Pay the monthly balance before the due date. There’s no rule that you have to pay the balance on the due date. Instead, pay the money back to the credit card as you spend it.

3) Check your credit score regularly. Pay attention to your credit utilization and credit score with credit reporting agencies like Experian, Transunion, or Equifax.

4) Maintain a low utilization rate. Don’t max out your credit card balances. Instead, pay them off as you accrue them to keep your credit score up.

5) Look for cards with no annual fee and low-interest rates. Building your credit with a credit card is acceptable. However, you don’t want to pay more than you have to.

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