How many credit cards do you have?

It’s just too easy to get a credit card these days. Walk into any shopping mall and there are sales people literally throwing credit cards at you.

Some banks even send pre-approved credit cards by mail. I can tell you that it is flattering to be pre-approved for a Platinum card!

Today’s tip for my frugal beagles is to watch out for credit card overload:

  1. Just say no. Sometimes you may be tempted by free gifts or a promise of cash rebates, but watch out for the fine print. You never get something good without paying a price. For example, you may need to spend thousands of dollars for a 2% cash rebate to cover the annual fees.
  2. Look out for the hidden costs. It may be a boost to your ego to hold a platinum credit card, but the annual fees may kill you financially.
  3. Too many credit cards affect your credit score. Not paying attention to or Understanding credit score will come back to bite you the next time you apply for a loan. In our country we have a central credit rating system linked to all banks.
  4. Out of sight, out of mind. I only carry around two credit cards with me, one I use for all my transactions and one more as a backup. If you carry fewer credit cards, you won’t find an excuse to use them

If you think about it, there is no reason for you to own more than one credit card.

So, how many credit cards do you own?

Photo Credits: Steve Woods

Popularity: 37% [?]

If you want more articles like this, make sure you subscribe to the Frugal Beagle feed. You can also subscribe via email. Please Stumble or with others. Thanks!