Credit Tips: How Many Credit Cards Does the Average Person Have

Posted On: April 1, 2006

Author: Steve
Posted: Fri Jul 02, 2004 7:40 pm
Post subject: How Many Credit Cards to Have
6/10/2002 3:31 pm CDT

I have two credit cards…one with a $2,000 limit and one with a $6,000 limit. Both are the same APR (13.9% fixed). I owe nothing on the $2K card but owe $5,200 on the $6K card. It’s going to take me about 8 months to pay it off.
I’m thinking about cancelling the $6K card because, to be honest, I don’t trust myself being able to NOT charge it up again once I pay it off. I’m thinking that if I max out the $2K card in the future, I’m only in the hole for $2K (which I can pay off relatively fast) versus being in the hole for $6K if I pay that card off and max it out AGAIN. I only earn $37K a year and I really don’t feel comfortable having $8K of potential credit card debt staring me in the face.

Does this sound like a logical plan? I would appreciate anybody’s thoughts or opinions.

Author: mouse
Posted: Fri Jul 02, 2004 7:41 pm
Post subject: How Many Credit Cards to Have

6/10/2002 4:54 pm CDT

Believe it or not, you don’t have enough credit cards.
Your debt to credit limit ratio is at 87%, WAY TOO HIGH.

Keep both cards your at 65%, still too high but better.

It might not be a good idea for YOU, but you really should have $20,000 or more of limits.

Years ago I had almost $200,000 in credit cards while making about $20,000/year.

Now with F.I.C.O. it is a different game.

You have to worry about “mix” and “ratios” and “scores” and “limits”.

You can use one card against the other for better rates, you also can get 0.00% for 6 or 9 or even 12 months (balance transfer and/or purchases).

There is also no law that says you can not pre-pay your credit cards. Pay in full plus what you think you may use in the next month…you have no debt when the bill comes.

Maybe somebody else might have some different ideas.

Author: Misty
Posted: Fri Jul 02, 2004 7:42 pm
Post subject: How Many Credit Cards to Have

6/10/2002 7:37 pm CDT

Steve,

I do have a different opinion than mouse. I’m a credit analyst for a major card company and if I were reviewing your credit and you had 20k in limits but made 37k a year, I would consider you to be over extended. I would say that what you have is good based on your income. There is such a thing has having too much credit-even if you’re not using it you still have the potential to use. If you don’t trust yourself having that much credit available to you, then I would suggest lowering the limits or closing one of the accounts. But in my opinion getting more credit is definately not the answer! You know your spending habits and temptations better than anyone so don’t dig yourself into a hole you can’t get out of! Hope this helps!

Author: mouse
Posted: Fri Jul 02, 2004 7:42 pm
Post subject: How Many Credit Cards to Have

6/10/2002 9:13 pm CDT

Misty—>87%

The only other way to solve this is pay it all off and use it for groceries and gas and pay it off every month (if no new credit is obtained)