Best Number of Credit Cards

Someone at the office this week told me that a banker told him that it is better to have 2 credit cards and pay them off each month than 1. I have heard this credit tip before, but do we really know this to be the case?

The credit reporting agencies seem to like available credit that is not tapped. So this would go to say that 2 credit cards with little to no balance each month would improve a credit score. The problem with this advice is people that can’t control themselves when it comes to credit. If you aren’t the person to pay off your credit card each month, don’t fall into the trap of 2 credit cards.

Just don’t do it. Bankers love to encourage their credit card and it can be good. But if you aren’t the person that is very good at paying it off each and every month, don’t give into this advice. The banker wants to get another person signed up on their credit card. These bankers make more money based on the amount of credit card sign ups they get. They don’t care about you or your credit and they don’t know if you will be able to handle 2 credit cards.

So be careful. This credit card advice may work for you, but only you know that. Whatever you do, whatever you buy pay it off every month. If you can’t do this, you need to tell yourself you don’t deserve it until you can.