The Virtues of Having Just One Single Credit Card Deal

March 21, 2008

One in 10 credit card holders has over 10 plastics. The optimal number of credit cards is an arguable question. Most credit experts advise to use 3 or 5 plastics. This amount is enough to establish and maintain good credit score and make maximum profit of your card deals, different options and rewards, and with this number you can keep track of your due dates, credit limits, etc.

However, some credit consumers manage to make the most of credit card benefits and build a good credit score using just one single credit card. Do you want to know how they do it?

Having too many credit cards can have a negative effect on your financial standing. It is not easy to keep in mind 10 or more due dates, introductory periods' expiration dates, and other terms. You forget to pay on time once or twice, get accrued a penalty fee, it is reflected in your payment history, and there you go - your credit score is damaged.

While some card owners successfully manage their credit card - just one - and take advantage of it. They are always accurate with paying their bills on time. It is not a problem for them to pay off their balance in full every month. And they consider credit cards to be an alternative method of payment.

So to say, single-credit-card owners can have a cash back credit card, for instance; make occasional purchases with it, pay off their monthly balances in full and get benefits that the credit card deals. But the silent question that has, probably, appeared in your mind is "How do they manage to build a credit score that allows them to qualify for rewards credit cards?"

A widespread opinion is that having just one credit card you will barely establish a strong credit rating. But this statement is not 100% true. As a rule, credit card holders who have 3-4 card deals are easy with getting another plastic. They just cannot resist the temptation of getting a new credit card with some enticing terms and features, or some extra bonuses. So, they just start spending more than they actually need, accruing, thus, larger credit card balances.

Some people even waste their plastic money making purchases they do not really need in the pursuit of another hundred rewards points on their hotel rewards card deal, for example. Multiple credit cards give you the false feeling of unlimited financial opportunities. And when such spendthrifts get back on solid ground, they find considerable credit card debts on their accounts, which are very hard to pay off in full every month.

"Shop till you drop" is a slogan for millions of people in the US. But living up to such principle many people end up in debts. The statistics shows that the overall debt of US consumers amounts to $ 53 trillion. This debt ratio has broken all records in the history of this country.

Maybe this terrifying figure will make you think about gradually reducing the number of your credit cards to 1, or t least 3-4?