How many credit cards?

[Dogman]

How many credit card does one person need? Last night a friend was over and we got to talking about the problems people get themselves into with them. Bcecause of her credit card debt.
Needless to say I was advised of how wrong I was because I said no one needs more than two, which is all I have, 1 business card and 1 personal card.
The wife has 7-8, our friend has 13 she thinks.

 

[zeebandit]

Credit cards

I agree with you. Two is all you really need.

 

[Jack Ryan]

2 that I keep all the time, but I do "collect" on those incentives and then cancel them as soon as I've been paid off. Right now you can get $30 off a 100 at Amazon.com. I usually cancel it the same day I pay the bill.

I also use the gas cards until the incentive runs out, then cancle it paid up and move to the next one.

 

[pudly]

One card only. Though I can see having a second for business purposes. Most people wouldn't "need" any more than that.

 

[absrio]

I like using them for large purchases with 0% interest. For the most part I will only buy something if I can pay it off right now. I will only pay interest on a vehicle and a house. I like using Best Buy for my electronic/appliance purchases. I use there 0% interest which for me is 18 months. I take my total purchase amount and divide by 17 and make that payment every month. That way it is payed off before hand. I have one actual credit card that I will pay off every month. Since my credit is so good with them, I have talked them into a 10% annual percentage rate if I ever needed to leave a balance.

 

[shark29er]

one

...well, I do have a visa card for emergency, but I use my Amex for everything. It is really fantastic with great fraud prevention and lots of benefits, but it is expensive (high annual fee). THe customer service is also really awesome and you have to pay it off at the end of the month.

I used to do the credit card swap thing, always trying to get the best deals, but I just don't have the time or energy for that anymore. Plus, I was never smart enough to keep on top of all the cancelations.

 

[bigcraig]

I don't have any.

You should have money in your savings account for emergencies.

If you can't pay cash for something, with the caveat of a house or car, you don't need it.

That is bigcraig's advice of the day.

 

[antsi]

The wife has one credit card. We keep it in the gun safe, along with a bit of emergency cash. That card so far has never had any purchases on it.

We both use debit cards for most of our purchases. You can get similar incentives on debit cards as credit cards, but no interest payments and no temptation to buy things we can't afford.

My only disagreement with BigCraig above is that I don't think cars fit into the "justifiable debt" category. Cars are a consumer item, and you can get usable transportation for cheap if you are willing to set your ego aside. My "justifiable debt" category is 1) home loan, 2) education loan, and in both cases, keep them as low as possible and pay off as soon as possible.

People say money is the root of all Evil. I say debt is the root of all suffering.

 

[42769vette]

if you have alot of credit cards it helps your credit cards it really helps myour credit score as long as you have you ability to not use them i have probably 15 but only use 2 i dont even carry the rest i just make sure there is no maintaince charges and sign up

 

[Scutter01]

You need exactly ZERO credit cards. The "need" for a credit card is a vile lie perpetuated by the credit industry and it's a primary reason for the mess we're in right now. If you can't afford to pay cash for it, you don't need it. It's as simple as that. (A house being the only exception).

Are credit cards useful? Of course they are. They can be held in escrow against an emergency. However, with proper financial planning and responsible spending, you can insure yourself against the need for that escrowed card. Your "sudden doctor bill" or "emergency car maintenance" will be covered out of the savings you've built as a hedge.

if you have alot of credit cards it helps your credit cards it really helps myour credit score as long as you have you ability to not use them i have probably 15 but only use 2 i dont even carry the rest i just make sure there is no maintaince charges and sign up

Having a lot of credit cards actually hurts your credit score. The amount of available revolving credit you have is actually a detriment. In the event you need a loan, the bank will say you already have too much available credit and will be less likely to loan you the money. This will come to light if you try to buy a house. They will recommend closing your unused credit. I might also suggest that you don't need a credit score. If you don't need credit, who cares what your credit score is?

Anyone who is currently up to their eyeballs, I highly recommend picking up [ame="http://www.amazon.com/Total-Money-Makeover-Financial-Fitness/dp/0785289089/ref=pd_bbs_sr_1?ie=UTF8&s=books&qid=1229869223&sr=8-1"]Dave Ramsey's Total Money Makeover[/ame]. It's a plan to get out of debt, build up your savings, and eliminate your credit cards and it really works.

 

[4sarge]

You need exactly ZERO credit cards. The "need" for a credit card is a vile lie perpetuated by the credit industry and it's a primary reason for the mess we're in right now. If you can't afford to pay cash for it, you don't need it. It's as simple as that.

Are credit cards useful? Of course they are. They can be held in escrow against an emergency. However, with proper financial planning and responsible spending, you can insure yourself against the need for that escrowed card. Your "sudden doctor bill" or "emergency car maintenance" will be covered out of the savings you've built as a hedge.



Having a lot of credit cards actually hurts your credit score. The amount of available revolving credit you have is actually a detriment. In the event you need a loan, the bank will say you already have too much available credit and will be less likely to loan you the money. This will come to light if you try to buy a house. They will recommend closing your unused credit. I might also suggest that you don't need a credit score. If you don't need credit, who cares what your credit score is?

Anyone who is currently up to their eyeballs, I highly recommend picking up Dave Ramsey's Total Money Makeover. It's a plan to get out of debt, build up your savings, and eliminate your credit cards and it really works.

Good Advice repped

I did use one of our 2 (both Credit Union cards) to purchase remodeling materials this Summer & Fall rather than dip into the mortgage but working to pay that off ASAP. I added an additional 1200 or so square feet of usable living space.

My parents had 0 Credit Cards and their philosophy was if you don't have the cash, don't buy it. The wife and I (raising 4 kids on a cops salary) have in the past played the credit card game but no longer have the need. The desire is still there but paying off that needless debt is an a**kicker

 

[bigcraig]

My only disagreement with BigCraig above is that I don't think cars fit into the "justifiable debt" category. Cars are a consumer item, and you can get usable transportation for cheap if you are willing to set your ego aside. My "justifiable debt" category is 1) home loan, 2) education loan, and in both cases, keep them as low as possible and pay off as soon as possible.

We will have to agree to disagree, most folks will be better served buying a new car with a warranty than they will with a used car of unknown history. Obviously people need to shop around and get a good deal on a vehicle thay can afford. And if you have good credit you can get a very low APR on a car loan. I also am the type of person that will drive a vehicle until the wheels fall off it or I have to replace it due to catastrophe.

Also, I feel "student / educational" loans are NOT a justifiable debt. Other than the medical field, there is no reason a college/trade/technical student cannot work and go to school.

And as far as the statement about vehicles and stroking ones ego, I like nice cars, SUVs actually, as they give me the features and versatility that I need in a vehicle.

 

[Panama]

If you have 1 credit card, identity thieves have only 1 chance to steal your "credit card" identity, by a variety of means.

You seriously have to be ******** me, somebody actually has 15 credit cards!

Even if you NEVER use them, you are still 15 times more likely to be the victim of identity theft!

The number of cards you have DOES NOT help your score, paying your bills on time, is how you get and keep a good score/rating.

WTF are you thinkin'? GET THE SCISSORS OUT NOW CUT UP AND CANCEL AT LEAST 14 OF THOSE CARDS!

 

[Scutter01]

We will have to agree to disagree, most folks will be better served buying a new car with a warranty than they will with a used car of unknown history.

I'll buy that argument (cash only, of course). However, you can get a dependable used car for so much less money than a new car that the numbers usually work out better. I know a guy who never pays more than $300 for a car. They're always beaters, but they always last him at least six months. That means he's only paying $600/year in "car payments". A new car, by contrast, will cost you (conservately) $150/month. It's extremely difficult to find a new car for under $15,000. A $15k car, financed at 0% for 7 years is still $180/month. And if the car doesn't last AT LEAST that seven years, you've just compounded your debt problem because you'll need to roll that remaining debt into your new car payment when the old one dies.

 

[Old Syko]

If you're the type of person that never leaves the sanctity of their own neighborhood you have no need for credit cards. For the rest of us who move around the world a bit that situation is not true. Try to get a hotel room without a card. There are places it can't be done. In this post 9/11 world try to get a fair shake on air fare without one. Ain't gonna happen since if you are paying cash at the counter you had better be there early enough to allow yourself to be subjected to a full investigation first and will be required to pay a premium price. While traveling west through Oklahoma and New Mexico by car the last couple years at night I also discovered you can't buy gas with cash. In many places it is payment by card only to avoid having cash on the premises or automated stations without an attendant for hundreds of miles.

Don't get me wrong, I hate cards with a passion, but we have been put into a situation where they are a necessary evil. If you can't pay in full when the bill comes don't charge it in the first place. If you are paying interest on anything other than a mortgage and that mortgage is more than half the assessed value of your home you need to step back and make serious changes quick before you become a statistic.

 

[Scutter01]

If you're the type of person that never leaves the sanctity of their own neighborhood you have no need for credit cards.

You can use a debit card for virtually every situation you described.

 

[DodgebyDave]

0 credit cards

0 debit cards

0 debt

in god I trust, all others pay in cash, gold or silver.

 

[Old Syko]

You can use a debit card for virtually every situation you described.

A card is A card as far as I'm concerned. You see, I don't pay interest period. One of the most major problems with debit cards and credit cards alike is that you're on record. You're in the system.

 

[Scutter01]

A card is A card as far as I'm concerned. You see, I don't pay interest period. One of the most major problems with debit cards and credit cards alike is that you're on record. You're in the system.

The point of the discussion isn't to be "off the grid", it's to be financially responsible. For the purposes of this discussion, a debit card and a credit card are not the same things at all.

 

[42769vette]

i flip houses for a living and my banker has always said if your able to get 40000 from credit cards and owe 200 on them its much easier to get a loan for a house its always worked great for me having lots of avaible credit as far as "who cares what your credit score is" im not interested in paying 9% interested on a house so i defintally care what mine is you just cant go do impule buying and say ya i could buy ___ on credit but how will i pay for it and ya i could carry it on a card for awhile but am i interested in paying 300 (by the time i pay it off) for a 50 dollar item