Sometimes, you might be wondering, what the average number of credit cards per person is ideal. It has been reported, that the average American, carries 2.35 credit cards and a total outstanding of $5,551. This average, indices, may vary based on what part of the country a person resides in, how old they are and a few other factors. Other factors like income brackets, genders, and ethnicities can also be a determining factor when it comes to the average credit card per person.
How Many Credit Cards is Ideal For You?
There is no straight answer to this question because it is actually different strokes for different folks. Some people can opt for a single credit card that will meet all their needs, while others can amass up to a dozen depending on what they want it for.
Some people have different cards for different reasons. For example, people who travel a lot would want to have a travel credit card, that offers them perks and travel mileage bonuses.
Others who frequently shop at grocery stores will readily take advantage of store credit cards to earn rewards, and bonuses, cashback rewards, etc.
Those who are frequent shoppers at certain retailers will find Department store credit cards necessary to get. This is because they stand a chance to get rewarded with extremely generous reward rates and no-interest options which other credit cards can’t match.
Some, on the other hand, will want to consider having a card that is readily accepted everywhere as some cards do not have universal acceptance. If your only credit card, is a card that is not accepted everywhere, you may face disappointing moments when you need your card the most.
Benefits of Having More Than One Credit Card
Having more than one credit card, helps you affect a transfer of its balance from one or more cards to one with a lower interest rate.
A second credit card can come in handy if you lose your first card.
If one of your accounts is frozen because of suspicious activities, your second card can cover up for you.
For those who are trying to build a good credit history, opening a new credit card can be great for achieving one.
More cards mean more rewards programs.
Demerits of Having More Than One Credit Card
There are always two sides to a thing and this very true when it comes to having more than one credit card. Even though opening up a new credit card can help boost your credit history, in the short term, it will decrease your average account age – a factor used when calculating your credit score.
Secondly, before you opt for a second credit card, think about the annual fees you’ll be expected to pay if the credit cards charge those.
Also keeping track of your spending, your payments for multiple cards, calculating rewards programs can be a pain in the neck sometimes with multiple cards.
It will be in your best interest, to weigh the pros and cons before taking any step, and this is no exception when it comes to credit cards.