How Many Credit Cards Should I Have |
A credit card is a tool for using money that becomes more and more relevant every year. At the same time, it has already proven its status as a practical and profitable banking product. A credit card with a grace period is the only tool that allows you to borrow money almost for free.
Features of using credit cards
The card constitutes a financial reserve which you can use at any time. How many credit cards should I have? Financial expert Kyle Drummond says, “The most sophisticated credit card users have two or three. They plan their personal or family budgets as efficiently as possible using the right amount on the credit card ”.
– Publicity –
Additionally, a credit card can be a backup e-wallet. The main thing to understand is that a credit card is a way to borrow money for a relatively short period of time. Therefore, it is advisable to ask for the amount that you can return at the expense of several future wages. The credit limit on the card can reach three average monthly salaries. The grace period is 60 days and applies to all card transactions and is renewable an unlimited number of times.
How do I get a credit card?
To increase your chances of getting the coveted one credit card, you need to follow a few simple rules. First of all, decide on your desires and the amount of income. You can choose a free “instant” card that you can get right at the bank office within minutes. It may be more convenient for you, for example, to use many card services that pay annual maintenance.
An analysis of your own abilities will help you complete the questionnaire correctly. If the desired credit limit does not match your income, the chances of being rejected increase. Besides filling out the questionnaire clearly, one of the most important factors in getting a credit card is your credit history. When considering an application, any bank will analyze how the loan was paid, what is the amount of current loan obligations, etc.
How many credit cards should I have?
– Publicity –
It all depends on your intentions. This will also determine not only the final decision of the bank but also the price, the type of card that the bank will be ready to offer you. There are several ways to find out about your credit history. Online banking customers can easily get a report on their credit history. The process takes place on the Internet banking system within minutes. This allows you to plan your financial relationships with banks, to benefit from lower interest rates on loans and special terms of service.
In theory, there is no limit. Bankers themselves advise having a maximum of two credit cards. In this case, you can control your spending and avoid the temptation to spend more than you can afford. Those who can’t control their spending and are prone to impulse spending shouldn’t open more than one credit card.
Don’t get carried away by credit cards! The more cards you have, the higher the overall credit limit on those cards. Therefore, the higher your credit load calculated according to the BCH (Credit Bureau). Even if all of your credit cards are not actively used, BKI will consider 10% of your credit limit that you spend monthly on card debt service. This can be the reason for refusing a consumer loan if you decide to get it.
What is the general pattern of receiving and using a credit card?
At your request, the bank will issue you a credit card and set a credit limit. You can use this limit as you wish throughout the validity of the card. The minimum period is two or three years. At the same time, you can spend part of the credit limit or the entire credit limit.
Likewise, you can repay a loan. You decide whether to return the full amount during the grace period or to return the debt in part but with interest. What will be the size of each of the loan payments, the customer chooses independently. It all depends on your financial capacity. The main thing is to make the minimum monthly payment on time. Typically, this is 10% of the amount used and less often 5% plus interest.
– Publicity –