Credit cards are a decision not to be taken lightly. You need to be able to look at your own spending behavior and determine if you can trust yourself with a credit card. Once you have decided that you are financially responsible enough for a credit card you then need to decide how many cards to have.
If you are the type of person who gets paid monthly and by the end of the month are barely able to feed yourself, a credit card is not for you. You will likely use the credit card in the last week of every month to cover your gap in finance. Then when you get your next check you will pay off your debt and continue the cycle each month. This is not sustainable and the credit portion will start to take over an increasing part of your month’s spending. Whatever you earn in a month is what you have to spend, no more. If you can’t understand this then you are not ready for a credit card.
If you are good at managing your finances then a credit card is a good idea. Even if you don’t need a credit card because you are so good at managing your finances you always have savings, it is still a good idea. Credit cards are a great way to build your credit score with banks and when you are looking for a large loan for a car or mortgage a high credit score will be useful. Credit cards are also useful for online payments or overseas payments as many places will not accept debit cards. Credit cards are often tied to fantastic bonus schemes so by simply loading your credit card with your money you can purchase your normal shopping ever week and potentially get more money back. Ensure you read the fine print though as nothing in life is free.
Finally, you need to decide how many credit cards to have. It is a good idea to have more than one, from different providers. This will cover you if you are trying to buy something and one card is not accepted. It also helps to build your credit score over time if you are able to manage multiple lines of credit. In short, two or more credit cards are a good idea if you can justify the reason for having them and can handle the false sense of financial freedom.
