Tips for Cutting Down on the Number of Credit Cards
Monday, December 17th, 2007It’s never good to have too many credit cards. There are just too many problems that can crop up when you have more credit cards than you actually need. But, of course, deciding which credit card accounts to close out can be a difficult process. After all, you don’t want to get rid of access to money that you might need one day. To reduce the number of credit cards that you have, you’ll want to run through a process that will help you keep only the best cards.
There is no ideal number of credit cards to have. You know that you have too many when you have problems because of them. For example, if you can’t keep track of which payments are due when, you have a problem. Another big problem is people sometimes don’t realize that they’ve been a victim of identity theft because they use so many different cards that they don’t notice strange charges on an account. Make sure that you only have as many cards as you can reasonably manage to keep track of.
To reduce the number of credit cards that you have, you’ll want to look at the details of each card and get rid of the ones that don’t benefit you. The first to go should be any credit card that has an annual fee. If you have non-fee cards, then you shouldn’t be paying just to have a card. Transfer any balances that remain on those cards and close the account.
Next, you’ll want to make sure to keep any cards that offer you great benefits. Cards with low-interest rates should be kept. Cards with automatic protections against fees (such as cards that won’t allow you to go over your limit) should be kept. Cards that have rewards such as cash back or points earned towards airline ticket miles are good cards to keep around.
Once you’ve gotten rid of the worst cards and kept the best cards, you might still have some cards left that you’re not sure what to do with. Check what the available credit is on each of them. Also check the interest rate. Get rid of the cards that don’t offer you much credit anyway; there’s no point in keeping them. If there are still cards left, get rid of the ones with the highest interest rates. This process should leave you with just enough cards to maximize your credit options without exposing yourself to the risks associated with having too many credit cards.
