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There are a lot of different offers from different companies on getting

credit cards. These offers come in various approaches with some promoting

interest-free billing for the first six months, free balance transfers, 15 to

20 percent rebates on your first purchase, free movie or concert tickets,

reduced hotel rates, and other enticing offers.

There are a lot of different offers from different companies on getting

credit cards. These offers come in various approaches with some promoting

interest-free billing for the first six months, free balance transfers, 15 to

20 percent rebates on your first purchase, free movie or concert tickets,

reduced hotel rates, and other enticing offers. Before you realize it, you

are already committed to sign the application form for a credit card, which

will ultimately affect yours and your family''s lives, your financial history

and future as well.

It would be prudent and safe to ask yourself seriously how many credit cards

is ideal for you and your lifestyle. Determine how many cards would be enough

for your purchasing needs while keeping your budget intact. There are of

course, several parameters to observe in finding out exactly what is a good

number of credit cards you should maintain.

A lot of Americans, as statistics would show, have between 5 to 10 credit

cards kept in their possession, with the average household bearing some $12,

000 in credit card payables. This is quite worrisome, considering that the

average annual income of a US household is a little under $50,000 with a good

quarter of it already committed to fixed expenses excluding home mortgages

and auto loans.

Creditors determine a minimum ratio of the consumer''s finances in

determining his credit standing and financial viability. While there is no

secret number of cards to maintain, a good rule of thumb is determined to be

around 2 to 3 credit cards only per household.

It is important to remember that the number of credit cards is only secondary

to your financial and paying capacity. It is not how many cards you have that

matters, but rather how much is your monthly debt balance and the length of

time that you have been carrying your debt. Keeping your outstanding balance

in the range of 25 percent to 50 percent of your available credit limit is a

good parameter. Having expenses beyond that range can send the wrong signals

to your creditors which could ultimately affect your credit ratings.

The creditors can view the summary of your accounts, and if they find that

your payment of obligations is decreasing and your debt is increasing, they

would take action to limit your credit standing. Having a lot of credit cards

would also mean reduced and diminished credit limits.

Keeping your cards at 2 to 3 helps you to better manage your funds and keep

track of your purchases and expenses. This includes bearing in mind the

different interest rates that the different cards charge, together with their

respective billing periods and cycles. A key point to remember is that the

credit cards are there working for you and not you working for your cards.

Keeping only a few cards would afford you to better keep track of your

finances.

In the final analysis, there is actually no fixed number of credit cards to

determine your lifestyle. Even when you make a credit card comparison, you

should always be guided by prudence and good management methods to keep your

financial standing on solid ground. http://1millionbestproducts.com

Credit Cards

By: Chatel Musgrove

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