My friend to me: \u201cMy wife uses just one credit card. She doesn\u2019t care about the rewards. Managing multiple cards is painful for her!\u201d<\/em><\/p><\/blockquote>\n\n\n\n
The quick and short answer is, there is no one size fits all. You will need zero, one or multiple cards depending on your preference, spending habits, ability to make payments and what categories you spend on.<\/p>\n\n\n\n
0 – ZERO credit cards<\/strong><\/h2>\n\n\n\n
- You use your card to buy things you can\u2019t afford and don\u2019t really need<\/a>.<\/li>
- You end up not paying the full balance every month and thus pay crazy interest rates to credit card companies.<\/li><\/ul>\n\n\n\n
If this is how you roll, then you should not have a credit card. You\u2019ll just end up digging yourself deeper and deeper into the debt abyss unless you take actions. Use your debit card or cash so that you can buy only with the REAL MONEY that you have!<\/p>\n\n\n\n
If you\u2019re in control of your spending and you\u2019re able to make full payments every month then read on.<\/p>\n\n\n\n
One credit card<\/strong><\/h2>\n\n\n\n
This approach will keep things simple! There\u2019s just one card to use and one monthly bill to pay. The issue with this is, you may be losing out on rewards\/returns from the other credit card categories. Ex: the card that you carry might give you only 1% cash back on the \u2018everything else\u2019 category (Medical bills, phone bill, car repair, membership fees etc). Why get a 1% return when you can get back 2% with Citi Double Cash<\/a> right?<\/p>\n\n\n\n
Many credit cards<\/strong><\/h2>\n\n\n\n
A lot of people fall into this bucket including me. This approach is great if you want to maximize your rewards in different categories like groceries, online streaming, gas, transit, travel (airline + hotels), restaurants etc.<\/p>\n\n\n\n
The stats vary but Americans typically carry 3-4 credit cards in their wallets so that they can use the right card at the right place to maximize returns.<\/p>\n\n\n\n
The problem with carrying multiple cards is – you got to pay multiple bills every month at different due dates. It can be easy to miss a payment unless you\u2019re on auto pay or you diligently track things. Also, while making a purchase, you got to do a quick mental juggle to decide which card to use (for max returns) although you\u2019ll get used to this with time.<\/p>\n\n\n\n
Word of advice<\/strong><\/h2>\n\n\n\n
At WellOiledMoney<\/a>, we focus on how you can make more % gains with your money by making good investment decisions. We don\u2019t want you to spend your hard-earned money on paying interest to credit card companies. If you use a CC, use it wisely. Buy only what you can afford and what you absolutely need<\/a>. Pay off that CC bill in full every month. <\/p>\n\n\n\n