{"id":2289046,"date":"2024-07-04T03:39:02","date_gmt":"2024-07-04T07:39:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/how-many-credit-cards-should-you-have-and-when-should-you-pay-them-off-washington-examiner\/"},"modified":"2024-07-04T03:48:48","modified_gmt":"2024-07-04T07:48:48","slug":"how-many-credit-cards-should-you-have-and-when-should-you-pay-them-off-washington-examiner","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/how-many-credit-cards-should-you-have-and-when-should-you-pay-them-off-washington-examiner\/","title":{"rendered":"How many credit cards should you have and when should you pay them off? &#8211; Washington Examiner"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">34<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fhow-many-credit-cards-should-you-have-and-when-should-you-pay-them-off-washington-examiner%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2289046&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>it is important to\u200b maintain a good credit \u200bscore by keeping your credit utilization rate below 30%. It is recommended to \u200bhave a few credit cards that align \u2063with your financial goals and spending habits, and to \u200cpay off more than the minimum amount each month to \u2064avoid accumulating extra interest. Timely payments are crucial to maintaining a good credit score, as they represent \u206435% of your score. Ultimately,\u200c your credit score reflects\u200b your financial \u200bmanagement habits and is used by lenders to determine your eligibility for various credit products.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><br \/>\n<!DOCTYPE html PUBLIC \"-\/\/W3C\/\/DTD HTML 4.0 Transitional\/\/EN\" \"http:\/\/www.w3.org\/TR\/REC-html40\/loose.dtd\"><br \/>\n<?xml encoding=\"utf-8\" ?><html><body><\/p>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-header-search-button-mob dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-mobile-search-icon td-icon-search\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><a class=\"tdb-logo-a\" href=\"https:\/\/www.washingtonexaminer.com\/\" title=\"Washington Examiner\"><span class=\"tdb-logo-img-wrap\"><\/span><span class=\"tdb-logo-text-wrap\"><span class=\"tdb-logo-text-title\">Washington Examiner<\/span><\/span><\/a><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div class=\"tdb-drop-down-search\" aria-labelledby=\"td-header-search-button\">\n<div class=\"tdb-drop-down-search-inner\">\n<form method=\"get\" class=\"tdb-search-form\" action=\"https:\/\/www.washingtonexaminer.com\/\">\n<div class=\"tdb-search-form-inner\"><input class=\"tdb-head-search-form-input\" placeholder=\" \" type=\"text\" value name=\"s\" autocomplete=\"off\"><button class=\"wpb_button wpb_btn-inverse btn tdb-head-search-form-btn\" title=\"Search\" type=\"submit\"><span>Search<\/span><\/button><\/div>\n<\/form>\n<div class=\"tdb-aj-search\"><\/div>\n<\/div>\n<\/div>\n<p><a href=\"http:\/\/www.washingtonexaminer.com\/#\" role=\"button\" aria-label=\"Search\" class=\"tdb-head-search-btn dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-search-icon td-icon-search\"><\/i><\/a><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><a class=\"tdb-logo-a\" href=\"https:\/\/www.washingtonexaminer.com\/\" title=\"Washington Examiner\"><span class=\"tdb-logo-img-wrap\"><\/span><span class=\"tdb-logo-text-wrap\"><span class=\"tdb-logo-text-title\">Washington Examiner<\/span><\/span><\/a><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<h1 class=\"tdb-title-text\">How many credit cards should you have, and when should you pay them off?<\/h1>\n<div><\/div>\n<div class=\"tdb-title-line\"><\/div>\n<\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div class=\"tdb-author-name-wrap\"><span class=\"tdb-author-by\">By<\/span> <a class=\"tdb-author-name\" href=\"https:\/\/www.washingtonexaminer.com\/author\/avilches\/\">Ailin Vilches Arguello<\/a><\/div>\n<\/div>\n<div class=\"tdb-block-inner td-fix-index\"><time class=\"entry-date updated td-module-date\" datetime=\"2024-07-04T03:00:00-04:00\">July 4, 2024 3:00 am<\/time><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div id=\"Brid_1689775\" class=\"tpd-featured-video bridtv\"><\/div>\n<p>The ideal number of <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/credit-cards\/\" target=\"_blank\" rel=\"noopener\" title>credit cards<\/a> varies for each person, but there are key factors that can influence that number, such as one\u2019s financial situation and spending habits. <\/p>\n<p>When considering applying for credit cards, two important factors to evaluate are whether you can consistently pay off the full balance on every card each month and whether the cards match your spending patterns.<\/p>\n<p>\u201cIt\u2019s crucial to have a manageable number of credit cards that align with your financial goals and spending habits,\u201d Firdaus Syazwani, founder of Dollar Bureau consultancy, told the <em>Washington Examiner<\/em>. <\/p>\n<h3 class=\"wp-block-heading\">What kind of credit card should I get?<\/h3>\n<p>Having multiple credit cards and using them responsibly can increase opportunities to earn points and improve one\u2019s <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/credit-scores\/\" target=\"_blank\" rel=\"noopener\" title>credit score<\/a>, providing more opportunities for rewards.<\/p>\n<p>\u201cIdeally, individuals should maintain about two to three cards to optimize <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/credit\/\" target=\"_blank\" rel=\"noopener\" title>credit<\/a> utilization and benefits without overwhelming their financial management,\u201d Syazwani said. \u201cThis strategy also helps in building a robust credit score by demonstrating responsible credit usage across different types of accounts.\u201d<\/p>\n<p>To maximize credit card benefits over time, the best approach is to select cards that align with one\u2019s <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/inflation-is-costing-the-average-u-s-household-an-extra-341-a-month\/\" title=\"Inflation Is Costing the Average U.S. Household an Extra 1 a Month\">long-term financial goals<\/a> and spending habits, such as earning cash back at <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/grocery-stores\/\" target=\"_blank\" rel=\"noopener\" title>grocery stores<\/a> or accumulating <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/travel\/\" target=\"_blank\" rel=\"noopener\" title>travel<\/a> rewards.<\/p>\n<figure class=\"wp-block-image size-full\"><figcaption class=\"wp-element-caption\">A Visa card is seen on Wednesday, May 15, 2024, in Portland, Oregon. (AP Photo\/Jenny Kane)<\/figcaption><\/figure>\n<p>Starting with the 1986 national launch of the Discover card, cash-back programs have become widely adopted by nearly every major card issuer as a standard feature in rewards programs. For instance, the Discover it Cash Back card offers 5% cash back on everyday purchases at different places each quarter, up to $1,500, and 1% cash back on all other purchases.<\/p>\n<p>Another option is the Blue Cash Everyday card from American Express that offers 3% cash back at supermarkets, <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/gas\/\" target=\"_blank\" rel=\"noopener\" title>gas<\/a> stations, and online purchases, up to $6,000 per year in each category, and 1% cash back on other purchases.<\/p>\n<p>When it comes to travel rewards, other options include credit cards that reward users with points or miles that can be redeemed for travel expenses, such as the Bank of America Travel Rewards and the Discover it Miles. <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/airlines\/\" target=\"_blank\" rel=\"noopener\" title>Airline<\/a>-specific credit cards include the American Airlines AAdvantage, United Explorer, and Alaska Airlines Visa Signature. <\/p>\n<figure class=\"wp-block-image size-full\"><figcaption class=\"wp-element-caption\">A screen displays news about the interest rate as traders work on the floor at the New York Stock Exchange in New York on May 1, 2024. (AP Photo\/Seth Wenig)<\/figcaption><\/figure>\n<p>However, these benefits depend on how well the cardholder manages his or her finances. In some cases, the perks offered by these cards may justify any annual fees, as long as they are used effectively.<\/p>\n<p>By understanding card terms like \u201cannual fees\u201d or \u201cforeign transaction fees,\u201d one can avoid unnecessary charges. <\/p>\n<p>For example, annual fees can range from $95 to over $500, and foreign transaction fees are typically around 3%, though credit card companies offer options that waive these or other fees depending on the deals available.<\/p>\n<h3 class=\"wp-block-heading\">What is a good credit utilization ratio?<\/h3>\n<p>While having too many credit cards can lead to overspending or <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/debt\/\" target=\"_blank\" rel=\"noopener\" title>debt<\/a>, having just one may limit flexibility and result in an insufficient credit utilization ratio. <\/p>\n<p>To maintain a good credit score, it\u2019s recommended to keep your credit utilization rate, or CUR, below 30%. The credit utilization ratio is calculated by adding all credit card balances and dividing that sum by the total credit limits of your cards. So, for example, if you have two credit cards, each with a $2,500 limit, and owe $1,000 on one and $750 on the other, your credit utilization ratio is $1,750 divided by $5,000, or 35%.<\/p>\n<p>Thus, it is important to be cautious and selective when applying for credit cards. Closing credit card accounts can adversely affect one\u2019s credit score. <\/p>\n<p>\u201cFor most people, my general rule of thumb is to use one card for regular transactions to optimize rewards, one or two more for unforeseen perks like travel points or store discounts, and an additional card as a backup,\u201d Andrew Gosselin, a certified public accountant and senior editor at the<em> Calculator Site<\/em>, told the <em>Washington Examiner<\/em>. <\/p>\n<h3 class=\"wp-block-heading\">What is a good credit score?<\/h3>\n<p>FICO is the most commonly used scoring model by lenders to evaluate applicants\u2019 creditworthiness.<\/p>\n<p>According to FICO\u2019s 2023 <a href=\"https:\/\/www.fico.com\/blogs\/perfect-credit-score-understanding-850-fico-score\" target=\"_blank\" rel=\"noopener\" title>survey<\/a>, only about 1.7% of the scorable U.S. population had a perfect credit score of 850.<\/p>\n<p>In general, a good credit score falls between 670 and 739, while scores from 740 to 799 are considered very good, and those from 800 to 850 are categorized as excellent. Scores below 670 are typically considered fair or poor.<\/p>\n<h3 class=\"wp-block-heading\">When should you pay your credit card bill?<\/h3>\n<p>It is recommended to pay more than the minimum amount to avoid accumulating extra interest and reduce debt faster. <\/p>\n<p>Minimum payments differ among banks, but they typically set a minimum amount, often around $25 to $35, which is the lowest payment required. <\/p>\n<p>If your statement balance is less than the specified minimum, the required payment will equal your total balance.<\/p>\n<p>\u201cIt\u2019s always better not to carry a credit card balance because these are some of the highest <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/interest-rates\/\" target=\"_blank\" rel=\"noopener\" title>interest rates<\/a> debt instruments available,\u201d said Lucia Dunn, professor of <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/economics\/\" target=\"_blank\" rel=\"noopener\" title>economics<\/a> at <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/ohio-state-university\/\" target=\"_blank\" rel=\"noopener\" title>Ohio State University<\/a>.<\/p>\n<p>Timely payments of your credit card bill are crucial since they represent 35% of your credit score.<\/p>\n<p>Failure to pay off all monthly balances on time can lead to more than late fees, <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/turkeys-lira-sinks-again-as-erdogan-cites-islamic-sharia-law-to-defend-economic-management\/\" title=\"Turkey\u2019s Lira Sinks Again as Erdogan Cites Islamic Sharia Law to Defend Economic Management\">high interest rates<\/a>, and debt. It can also result in a lower credit score due to an increasing utilization rate.<\/p>\n<p>Your credit score reflects your financial management habits. Companies rely on these scores to evaluate your eligibility for <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/mortgages\/\" target=\"_blank\" rel=\"noopener\" title>mortgages<\/a>, credit cards, auto loans, and other credit products, as well as to determine the interest rates and credit limits you qualify for. <\/p>\n<p>Additionally, they are used for tenant screening and insurance purposes.<\/p>\n<p>This is because lenders assess your credit score to gauge your reliability as a borrower, aiming to determine how likely you are to responsibly repay debts based on your past records.<\/p>\n<p>According to Gosselin, those who have a balance should devise a strategy to pay it off quickly while continuing to make the minimum payments on their other cards.<\/p>\n<p>\u201cAfter the first bill is paid off, I counsel clients to pay the minimum amount due on their lower-rate cards and make extra payments on their highest-interest card before moving on to the next highest,\u201d he said. \u201cThis \u2018debt snowball\u2019 strategy rapidly pays off expensive, <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/long-term-economic-implications-of-the-ukraine-war\/\" title=\"The Long-Term Economic Implications Of The Ukraine War\">high-interest debt<\/a> while preserving credit standing.\u201d<\/p>\n<p><a href=\"http:\/\/washingtonexaminer.com\/\" target=\"_blank\" rel=\"noopener\" title><strong>CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER<\/strong><\/a><\/p>\n<p>Even though making payments by the due date keeps you in good standing with your credit provider, early payments are beneficial because they can help reduce interest charges, increase available credit, and improve your credit score.<\/p>\n<p>Overall, to optimize credit card benefits while using them responsibly, a cardholder should use his or her credit cards whenever possible to ensure earning rewards, avoid overspending, and aim to pay off balances in full each month or as much as possible to minimize debt.<\/p>\n<p> <script data-cfasync=\"false\" src=\"http:\/\/www.washingtonexaminer.com\/cdn-cgi\/scripts\/5c5dd728\/cloudflare-static\/email-decode.min.js\"><\/script><script>!function(){var g=window;g.googletag=g.googletag||{},g.googletag.cmd=g.googletag.cmd||[],g.googletag.cmd.push(function(){g.googletag.pubads().setTargeting(\"has-featured-video\",\"true\")})}();<\/script><script>var _bp=_bp||[];_bp.push({\"div\":\"Brid_1689775\",\"obj\":{\"id\":\"27789\",\"width\":\"1280\",\"height\":\"720\",\"stickyDirection\":\"below\",\"video\":\"1689775\"}});<\/script><script defer src=\"https:\/\/services.brid.tv\/player\/build\/brid.min.js\"><\/script><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><a class=\"tdb-logo-a\" href=\"https:\/\/www.washingtonexaminer.com\/\" title=\"Washington Examiner\"><span class=\"tdb-logo-img-wrap\"><\/span><span class=\"tdb-logo-text-wrap\"><span class=\"tdb-logo-text-title\">Washington Examiner<\/span><\/span><\/a><\/div>\n<p><\/body><\/html><\/p>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>How many credit cards should you have and when should you pay them off? The ideal number of credit cards varies for each individual, but factors such as financial situation and spending habits can influence this decision. It is important to consider whether you can consistently pay off the full balance on each card every month and if the cards align with your spending patterns. Maintaining about two to three credit cards can optimize credit utilization and benefits without overwhelming financial management. Selecting cards that align with long-term financial goals and spending habits, such as cash back or travel rewards, can maximize benefits over time. It is crucial to understand card terms like annual fees and foreign transaction fees to avoid unnecessary charges. Keeping credit utilization rate below 30% is recommended to maintain a good credit score. Timely payments of credit card bills are crucial as they represent a significant portion of your credit score. It is advised to pay more than the minimum amount to avoid accumulating extra interest and reduce debt faster. Overall, using credit cards responsibly, earning rewards, avoiding overspending, and paying off balances in full each month can help optimize credit card benefits<\/p>\n","protected":false},"author":3166,"featured_media":2289047,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2024\/03\/AP18261560466279.jpg.optimal.jpg","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[33375,33898,33899,33897],"class_list":["post-2289046","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","tag-credit-cards","tag-debt-management","tag-financial-literacy","tag-personal-finance"],"fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2024\/03\/AP18261560466279.jpg.optimal.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2289046","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/3166"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2289046"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2289046\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2289047"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2289046"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2289046"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2289046"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}