Do you collect credit cards like they are baseball cards? If so, listen up: this type of card is not going to increase in value over the years. Instead, a credit card can cause you more harm to your finances than good. There is nothing wrong with having one (or a couple) credit card, but at some point you need to draw the line. If your wallet is full of cards that you never use, something is wrong.
How many credit cards do you really need? Only you can answer this question. If you are comfortable with your current load, and have never had any financial trouble because of them, you may want to stick with the same system into the future. But if you have had issues due to carrying too many credit cards, now is the time to get rid of some of them.
Won’t canceling a credit card affect my credit score? When you get rid of available credit, your score may fall slightly. And while you never want this to happen, you need to weigh it against the benefit of kicking the card out of your life. Remember, your score will recover over the long haul.
Tip: keep the credit cards that you use and give you the most benefits. If one card has an APR of 10 percent and another 20, it goes without saying that you should ditch the latter. When getting rid of credit cards make sure you are careful with what you are doing.
Credit cards can be great tools. Just make sure you use them responsibly, and that you never get in the habit of starting a collection. Simply put, you don’t need a handful of cards!
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Tags: Cards, Collect Credit, Collect Credit Cards, Credit Cards
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