The answer to the question posed by today’s blog title isn’t an easy one to land on. In truth, it all depends on the person and his or her spending habits and needs. At the end of the day, if you can be approved for several credit cards, you are totally at liberty to have them. However, it’s important to be mindful of the impact that having several open cards can have on your credit score.
How many credit cards should you really have?
As mentioned, figuring that out can be determined by your personal needs. Then again, it can also depend on the credit limits you have on each card. Let’s say you’re just starting to build your credit and you have a credit card with a low $1000 limit. Naturally, if you need to make a purchase that exceeds $1000, another card may be necessary. On RateHub.ca, Natasha Macmillan points out that there is no hard rule about credit card ownership. But one thing is for sure: everyone should have at least one.
“The reason why comes down to the fact that credit cards play a key role in formulating a strong and diversified credit score,” says Macmillan, “That’s important because everyone from lenders (such as banks) to landlords use credit scores to evaluate if someone is financially reliable and if they should be approved for an application…Without at least one credit card tied to your name, credit bureaus have less information about your financial profile and how you manage revolving credit.”
How many credit cards are too many?
It’s important to remember that simply applying for a credit card can impact your credit score. If credit bureaus review your profile and get the impression that you’re looking to borrow too much money, it can reflect on your score negatively. Then again, as Macmillan informs us, carrying a combination of credit cards can sometimes be beneficial.
“With more credit cards comes more buying power,” she writes, “That can come in handy if you’re in a position where you need to spend more money than usual, like if you have to make large back-to-back purchases or pay for a major last-minute expense.”
What are the advantages of having multiple credit cards?
Depending on your usage, you can actually help to improve your credit score by using several cards. As Amy Fontinelle informs us on Investopedia.com, credit experts recommend that you should avoid using more than 30% of your available credit per card at any given time.
“By spreading your…purchases across several cards, it becomes much easier to keep your credit utilization ratio low,” she writes, “This component makes up 30% of your credit score. Only your payment history is weighted more heavily (at 35%) in determining your credit score.”
Do you accept credit cards in your store?
The majority of Canadians carry at least one. So, as a business owner, there is no doubt that you should accept credit cards as methods of payment. At Priority Pay, we proudly offer Canadian merchants a variety of high-quality payment terminals to choose from. You can easily and securely accept both credit card and debit card payments with the Poynt C Smart Terminal, the Newland 910, the Ingenico Desk 5000 or the Ingenico Move 5000.
To learn all about your options, please don’t hesitate to call us 1-888-431-4344. You may also email us at info@prioritypay.ca or request a quote on our Contact page!