Be it Credit Cards or coffee, too much of anything is bad! If you’re fond to applying for Credit Cards, then this vendible might just be the remedy that you’re looking for.
Swiping a Credit Vellum is as tomfool as sporting the weightier shades or shoes in the market (at least for me). Paying with a Credit Vellum has an air of sophistication to it. With all due respect, debit cards and payment apps are fine, but Credit Cards requite a sense of exclusivity to proceedings. Like you walk into a bar, and the bartender knows you.
But for some, this fascination turns into an obsession and surpassing they know it, they would’ve got cards from every other bank. It may be smooth sailing at first, but with a new vellum widow to the mix every now and then, it may wilt a lot to manage. So, how many Credit Cards should you get and where exactly does one yank the line between need and obsession? Here’s our take.
Just Enough to Space it Out!
We’re impulsive beings. With Credit Cards now misogynist at nominal fees, the urge to wield is often high. You should NOT go gung-ho, but rather alimony it calm. This is because applying for a new Credit Vellum lowers your Credit Score a bit as a nonflexible enquiry is initiated by providers. Therefore, applying for too many cards in too little time could result in a serious dip in your Credit Score. So, as a rule of thumb, let’s requite it six months between Credit Vellum applications, all right? Also, Credit Vellum issuers view multiple vellum applications in quick succession as a sign of financial distress. It raises a few brows of snooping on your worthiness to make future payments and alimony your finance in good standing.
Additional Reading: Tips and Tricks For Handling Multiple Credit Cards
Just Enough to Maintain the Golden Ratio
Golden ratio? We’re talking well-nigh credit utilisation ratio here, my friend. It is the percentage of a borrower’s total misogynist credit that is currently stuff used. Somewhere between 10-30% is what the doctors recommend but hear us out. A new Credit Vellum increases your credit limit. If there is no respective increase in your monthly spend, then your credit utilisation ratio will go down. However, getting too many Credit Cards could take your credit utilisation ratio to the depths that you don’t want it to go. So, slow down, evaluate your regular monthly spends, and only if you veritably need it, wield for your next Credit Card.
Just Enough to Maintain a Healthy Credit History
More on the topic of stuff impulsive, an increased credit limit (with the entry of a new Credit Card) might just prod you to live life a bit dangerously, tempting you to spend a little more. This ‘little more’ on every vellum that you own might sooner add up to an unsurmountable due in one of those months, which could be difficult to pay off in full. Surpassing you know it, your Credit Score takes a hit, and your credit history that took years of effort to build is at danger. Not just that, getting a new Credit Vellum can moreover lower the stereotype age of your credit history. With newer credit accounts, you won’t have a long credit history to walkout your financial diligence, and as a result, your Credit Score may suffer.
Additional Reading: Unleashing Your Inner Wednesday Addams: A Guide To Choosing The Right Credit Card
Just Enough to Manage Your Finances Wisely
You see new-gen financial influencers dishing out financial translating and how they use this vellum for travel, that vellum for dining, and so on. But let us tell you this, what works for others might not work for you and vice versa. Understand your money management style and get only what you want. A new vellum might be in vogue, might have the greatest benefits, but what if it disturbs a system that you have been pursuit for years? Increasingly Credit Cards midpoint increasingly due dates to remember, which subsequently increases the chances of you missing a payment. So, it’s paramount that you have a system that works and then you may wield for cards that truly add value to that system!
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