Wondering how many credit cards you should have? Well, that depends on who you ask. Some financial experts say zero—as in none and that it isn’t worthwhile to open a single card up. Others say that you should sign up for as many as you can handle (which is especially important to consider if you’re signing up for credit cards that have annual fees attached to them).
However, the question may not be how many you can handle, but more so what kinds of cards you should carry. Co-founder of credit.com, Adam Levin suggests carrying an all-purpose card and a low interest credit card, and not worrying yourself about opening any other credit cards.
Your all-purpose card would be your rewards based cards, which are great for everyday use. You can often get rewards and points for these types of cards through everyday purchases, like groceries, shopping and more. Some cards offer double or even triple points for some types of shopping, in fact (such as three points for every dollar spent grocery shopping while using this card). It allows you to earn rewards for purchases, which many commonly see in the form of frequent flier miles. The most common reward to seek out through a credit card are points that can help you land a discounted flight or perks at the airport or onboard the plane, like cheaper drinks or access to the flight lounge. The interest fees are higher, and some of these cards even have an annual fee that you’ll have to pay, but the goal is to pay off the balance each month regardless.
Your low interest credit card is for emergencies and unexpected repairs. Just like you want to have an emergency bank account that you can tap into when you have some sort of unexpected situation arise, you’ll also want to have a credit card that can bail you out of an expensive situation. For example, if your dog accidentally gets into a bunch of chocolate and has a free for all, you’ll need to make an unexpected trip to the vet. Using a low interest card will allow you to put the cost on your card and then not stress as you pay it back because the interest rate won’t compound by too much. These cards give you wiggle room, and due to low interest rates, you’re not overwhelmed with paying them back.
