You probably have asked yourself this question: Is it better for my credit score to have just one credit card or many? Should I have credit cards with no foreign transaction fees? Find all the information here that will clear your doubts.
Credit cards come in many types, so you need to check the card you wish to have. Each card has unique characteristics that make it more or less attractive depending on the consumer and the type of product you are looking for. Keep in mind that the credit cards you choose may vary according to advantages offered, level of credit required, issuing bank, and forms of payment, rewards, interest rate, and more. We are sure you are looking for the best credit cards in 2020, right.
How Many Credit Cards Should I Have?
There is no magic number because it is not the number of credit cards you have, but how you manage them will or will not raise your credit score. On the other hand, you must analyze your specific case. For example, if you are starting to create a credit history now, having a single card is ideal, and the key is to use it according to the following three rules:
- Pay your bills on time (never do it late).
- Keep your card balance as low as possible or at zero.
- Please do not apply for a new credit card until you need it.
If you consistently follow the above for a reasonable period, you will be on the right track. In addition, if you are also paying off a student loan, car, or mortgage the right way, you will prove to lenders that you are a responsible person who knows how to handle debt. It will appear on your credit report and helps raise your credit score. Know that with a single credit card, it is difficult to get good credit history. Wait for the right time to request another new credit card with no foreign transaction fees. Use your cards wisely, just as you did with your first credit card.
Is Having Too Many Credit Cards Harmful?
For people who have a very well paid job, having more than one credit card in their wallet is very common. In addition, when they put their credit to good use, they get high credit scores. Remember that high scores are between 700 and 850, and low scores around 300.
We can have many credit cards and not ruin our credit score if we keep balances low relative to the credit limit we have. If a person loads a specific amount on several of their cards monthly, but when the account arrives, they pay the entire balance or keep a deficient balance. This person probably has a high credit score. The key is to keep expenses well below limits. Find out the best credit cards in 2020!
Does Our Credit Score Drop When We Apply For Many Credit Cards?
Credit score goes down when we request a new credit, and the number of recent verifications made to your report. We do not refer to the checks made because you are requesting a student loan to buy a car or property, but to verifications for credit card applications.
If your credit history is good enough and you have kept it that way for many years, applying for the best credit cards in 2020 should not affect you.
Following are some of the leading banks in the U.S. that offer a greater variety of credit cards are:
- Bank Of America
- Chase Bank
- Capital One
- Wells Fargo
- Discover It
It does not matter if you have only two cards or many. The secret is in the use of your credit: the more credit you have available on your cards about the expenses that you charge each month. Pay your account on time to have a better credit score. The law states that you have the right to request a free copy of your credit report once a year from major credit-reporting agencies.
Having minimum credit score is necessary. Do your research, find out about credit cards with no foreign transaction fees, and consult with experts and reputable and credible websites.