How many Credit Cards should you have?

Will you be putting this on your store card today?  Oh, you don’t have one?  Well, if you apply for one today, we can give you $50 off your purchase! Well, if you’ve ever been shopping, I’m guessing that sales pitch sounds familiar. But are department store cards a smart way to save money … or are they a bad idea?

Most of us know someone who has more credit cards than Baskin Robins has ice cream flavors. But 3 out of 10 adults don’t have a credit card, and the average is 2.6 per person which is the lowest number is decades.

Branded retail credit cards can save you money on your purchase when you apply, and often there are other discounts or rewards. So, are retail cards a smart way to save money? No, I don’t recommend them. They are a marketing tool by retailers who also make a lot of money on the interest they charge customers who carry a balance. You’re also more likely to be a victim of identity theft if you have lots of cards.

My suggestion: perform some plastic surgery! Any scissors will do the job!

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About Compass - finances God's way

Compass—finances God’s way, is a worldwide non-profit interdenominational ministry that teaches people how to handle money based on the principles of the Bible.
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2 Responses to How many Credit Cards should you have?

  1. jasonlexie says:

    I agree 100%. But in the same token a wise approach can yield rewards. Take alaska airline for example. Their credit card program offers air miles on purchases and 1 companion fair per year at 99$ plus tax. For me that’s a 400-800$ ticket for 99$ plus the air miles I earn all year long. Provided the credit card is not a temptation and used responsibly (paid in full every month) is this still a bad idea?

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