The ideal number of credit cards: why/when more is better

When I started my credit journey in January 2012, all I wanted at the time was the first card, and I stayed with one card for the next 9 months until I learned that there were better cards in the market. For the next 3 months I went on an app spree and finally came to the point where I felt adding another card to my portfolio wouldn’t do me much good any more.

Apparently the number of credit cards I have is absurdly high to many people. The common perception is that more credit cards suggest more financial trouble. Knowing that a high percentage of the population tend to abuse credit and get themselves into a debt spiral, I totally understand how this perception was created.

Needless to say, if you have had credit before and found yourself often charging credit cards up to the maximum allowed and not paying the balance in full, 1 credit card is enough. You still need a credit card to maintain your credit history, but for that purpose one card can be sufficient if you do not abuse it. On the other hand, if you are able to handle credit well, never charge to the limit, and always pay statement balances in full, then you should have multiple credit cards. If you want to know the reason, please read on.

Continue reading The ideal number of credit cards: why/when more is better

Personal Finance 201: Introduction to credit scores

OK, the credit score. This is perhaps the most controversial topic and most confusing element in the credit history universe. Humans in all stages of their history, have been easily fascinated by numbers, and today still retain a subconscious desire to summarize almost everything in hard numbers. What’s the temperature today? What grade did you get from the econ class? How many days are left till summer? Don’t we all love numbers! Continue reading Personal Finance 201: Introduction to credit scores