You Have a Wallet Full of Credit Cards: Is This Causing a Credit Score Disaster?

July 5, 2024 By: Stephanie H. - CreditMonarch Online Writer0 comments

Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed or approved by any of these entities

People can feel nervous when they first get a credit card, but once they learn about the benefits, it’s easy to become addicted. Once a person starts to see the rewards from their first card, and start receiving daily offers in the mail, the vast array of potential credit cards available to them seems like a goldmine. You can get a high reward credit card for traveling. At your favorite store, you have the option to apply for a credit card. You have the option to acquire a credit card that rewards you with airline miles.

The most important reason of having multiple credit cards can be a good thing is that it’s one of the easier ways to boost your credit score. Your FICO score is based on your debt-to-credit utilization ratio, which basically means that your debt should be less than 30% of the credit limit you have available. Taking into account all your credit limits results in a higher overall worth.

The primary benefit of having more credit cards is that you can earn more rewards, whether they be airline miles or cash. In this instance, credit cards can be utilized as a means of earning money. If you have too many credit cards and accumulate too much debt, the benefits will be outweighed by the cost of interest.

When it comes to selecting the appropriate credit card, we are all seeking something different. We may be uncertain about which credit card would be the best option for us because of the numerous options to choose from. Most credit cards have benefits like cash back, 0% APR, and no annual fees. Depending on your preference in what type of benefits you are looking for, is how you will find the correct credit card for you.

You have the opportunity to earn rewards for groceries, dining, gas, and other expenses with a cash back credit card! If you need to finance a major purchase and don’t want to pay interest, a credit card with 0% APR can help ease the stress by paying the balance off over time without interest for a certain period of time. If you want to keep your rewards without paying annual fees, consider getting a credit card without annual fees.

Here at CreditMonarch, we strive in helping everyone choose the credit card that suits them best. We believe these are the top rated and most popular credit cards of July 2024.

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