How many credit cards should I have?

How many credit cards should I have?

Janet Bodnar (Deputy Editor, Kiplinger’s Personal Finance) gives expert video advice on: Should I take advantage of low rate offers and transfer my balances?; How many credit cards should I have? and more...

As few credit cards as possible is the optimum number. You might want to go with two cards, one of which you use as a convenience - about your frequent flyer card for example - or about cash back card. But, you pay it off every month. Then, another card is maybe the card that has the low interest rate, and that would be for balances that you might want to carry over from month to month. Suppose you have to buy a new computer, or a new refriderator - a major purchase that you're not going to be able to pay off when the next months bill comes. Then you want to have a low interest rate card and a plan for paying it off. So, two credit cards is a good number, but generally the fewer credit cards the better.