Best Practices for Credit Cards

According to a Credit Karma report, the average American has 2.5 credit cards. Some have two; for others, it’s three. Of course, outliers may have more or less.

The number is all over the place, which raises the question–how many credit cards should I have?

There’s no perfect answer like so many other things in life because personal finance is personal. However, you can use some essential criteria as a guide.

Credit Card Pros

Credit cards come with some advantages that benefit owners. When used responsibly, credit cards make life easier and maximize your dollars. Here is a list of some credit card pros:

To build credit

You show creditworthiness with your flawless payment history and low utilization rate. As a result, your FICO score improves, resulting in better financing options in the future.


To earn rewards

Nobody wants to spend more than they have to. So credit card companies may offer cashback or points on your everyday purchases to save you money with little effort.



Credit cards are easy to use and more convenient than cash. They take up less space in your wallet and allow you to keep more money in a high-interest savings account longer.


Credit Card Cons

Despite many advantages, credit cards also come with a few disadvantages. Here is a list of some credit card cons:

The potential to overspend is real

It’s easy to spend more than you intend when using a credit card versus cash–and there’s science to prove it.


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