Should I Have 2 Credit Cards – “How many credit cards do I need?” In my 30-year career as a financial educator, I’ve answered thousands of credit-related questions, but one always tops the list.
There is no magic number that works for everyone. According to Experian’s State of Credit 2021 report, the average American has three credit cards from a major issuer such as Visa, Mastercard or American Express and two or more cards from a mall.
Should I Have 2 Credit Cards
The truth is, there is a sweet spot that works for you based on your spending and debt repayment habits and how much time and effort it takes to manage the plastic in your wallet.
Million Stolen Credit Cards Handed Out For Free By Dark Web Marketplace
Use this guide to find out what type of credit card user you are—and how many credit cards you have.
You want a credit card because of the convenience and benefits you want, but you want it to be easy. A cashback card is a great option for you because people are spending more money. While you will likely use this card for most of your spending, I recommend having another card as a backup in case your card is stolen or not.
Another credit card can also improve your credit score. That’s because you have more credit available, which lowers your “credit utilization ratio,” which compares your credit limit to your balance. For example, if your credit report shows a credit card with a $10,000 limit and a $3,000 balance, your utilization is 30%.
“Try to keep utilization under 30%,” advises Jeff Richardson, vice president and group manager at VantageScore Solutions. (VantageScore is one of two major companies that create credit scores. FICO is the other.)
Ways To Use Credit Cards Wisely
The Wells Fargo Active Cash® Card offers 2% unlimited cash back and an annual fee, making it the most affordable credit card ever.
Look at miles as a great option for a second card. There’s no annual fee and you’ll earn 1.5 miles for every dollar spent. Plus, you’ll earn two miles the first year. You can charge miles as credit so you don’t have to use them for travel. There are also no foreign transaction fees, which is important if you are traveling or shopping outside of the US.
You want points and benefits, but you don’t want to worry about every purchase to make sure you’re using the best card every time. You can use some cards that offer extra rewards in the areas you spend money on. Popular bonus point categories include American supermarkets, restaurants/diners, gas stations/gas stations, and hotels. Make sure other purchases go to the card that offers the best cashback rate: Aim for 2% cash back or 2x.
In addition to two cards from major issuers, you may want a store card from a reputable merchant. But watch out for card shops. I missed a credit card payment because it wasn’t in the rotation of bills I paid and the late fee and interest was high.
Banks See Net Reduction Of 2.9 Lakh Credit Cards On Rbi’s Inactive Card Diktat
To choose the right card, you need to know your spending habits. Your credit card company may send you a spending report that breaks down past spending for you. However, if you use a budget tracker like Mint or YNAB, you’ll see the big spending categories there.
You can shop with the Capital One SavorOne Cash Rewards Credit Card and earn 3% cash back at US supermarkets and restaurants, as well as entertainment and streaming services. The base rate is only 1%, meaning you’ll need to use a different card for purchases outside of these categories.
If you’re an Amazon merchant, Amazon Prime Rewards Visa Signature offers a whopping 5% cash back on Amazon purchases. You get 5% at Whole Foods Market and 2% at restaurants, gas stations, and drugstores, so you can use them to make purchases at those places. There is no annual fee, but you must be an Amazon Prime member, which costs $139 per year.
When it comes to the card you use to spend, you can choose between a card that offers travel rewards or cash back. If you’re interested in travel rewards, the Capital One Venture Rewards credit card is a great option, earning two points per dollar spent. The annual fee is $95.
Credit Cards & Credit Card Rewards
If you want cash back, the aforementioned Wells Fargo Active Cash Card gives you 2% unlimited cash back with no annual fees and a $200 sign-up bonus when you spend $1,000 in the first three months.
You want to earn rewards, lots of them, and your goal is to earn more than one or two points per dollar spent, 1% to 2% cash back whenever possible. You have excellent credit and enjoy opening new cards. You are also willing to pay an annual fee of several hundred dollars if you know that the rewards you will receive will easily cover the cost.
This means you are prepared to use separate cards for different purchases, for example one card for groceries, another for fuel and a third for travel. When you try to apply, you choose to use the card to meet the spending requirements, which means spending thousands of dollars in the first three to six months after the card is approved.
You might need a dual airline credit card that earns you rewards like free baggage allowance and priority boarding, and a hotel credit card linked to your favorite brand to earn points, higher and free life.
Beginner With Business Credit Card Plan: Over 500k Points & 2 Years Companion Pass
These analyzes are a lot of work, and you typically use a spreadsheet to track benefits, annual costs, and progress toward spending requirements. Or you can turn to a number of apps to help you decide which card to use for certain purchases.
Use the American Express Blue Cash Preferred® Card on the first $6,000 in US grocery purchases you make each year and earn a healthy 6% with 1% terms and conditions.
The Capital One Venture X Rewards Credit Card offers an economic sign-up bonus of 75,000 points when you spend $4,000 in the first three months. Earn two points for every dollar spent.
The Platinum Card® from American Express earns you 100,000 points when you spend $6,000 in the first six months, plus additional travel benefits like $200 in airfare, hotel and Uber earnings (and alerts). ), significant involvement in airport lounges and hotel ownership.
Best Credit Cards In India For 2022 [detailed Reviews]
Most lenders require a personal credit score of 680 or higher, especially for prepaid cards, although some require less. However, if your score is below 630, you may want to consider a credit card to help you build or build credit. (Not sure about your credit score? Free credit scores are available from a variety of sources.)
Secured credit cards can be a great option if you have bad credit. A security deposit is usually required, which is returned when the account is closed. Your credit score is the same as your credit score. Make your monthly payments on time and you’ll be eligible for a permanent credit card within six to twelve months, depending on how many negatives appear on your credit reports.
One credit card can help you get credit while another card can help top up and provide additional credit references. To improve your credit score, buy the card you really want.
Most secured cards require a deposit equal to your credit limit, but the Capital One Platinum Secured Credit Card requires a deposit of $49, $99, or $200, depending on your credit card, credit, and more. You’ll start with a $200 credit limit, but if you pay on time, you’ll be eligible for a higher credit limit (higher than your budget) within six months. There is no annual fee.
Drawbacks Of Not Owning A Credit Card
Amazon customers may want to consider the Amazon Secured Card, which requires a security deposit of $100 to $1,000 and offers a credit limit that matches your account. With the right Prime membership, you get 2% cash back on Amazon purchases. (This card has no annual fee.) After one year, you’ll have the chance to redeem your savings and activate the Prime Store card features, earning 5% cash back on Amazon purchases and eligible Prime members.
Use business credit cards to simplify tax time by separating business and personal purchases. And of course get paid for business purchases.
You don’t have to have a high price – or none at all. Self-employed people, freelancers, and side hustlers qualify for a variety of small business credit cards that can be great additions to your personal credit card.
Most small business credit cards require a good personal credit score and sufficient income from all sources (including personal), not just business. this
Why Accepting Credit Cards Is Worth It
Credit cards you should have, what credit cards should i have, should students have credit cards, how many credit cards should you have, should i have 2 credit cards, should you have 2 credit cards, should you have multiple credit cards, should i have multiple credit cards, how many credit cards should one have, should i have two credit cards, how many credit cards should someone have, how many credit cards should i have