One of the realities of life today is credit cards. They are used by everyone, and easy for nearly anyone to get. And many of us would be surprised to look into our wallets and realize how many credit cards we really have: deparment store credit cards, gas station credit cards, bank credit cards. The list goes on and on. But do you really need all of those? The answer is no. One of the keys to getting the most out of your credit cards and using them wisely is to know which to keep and which to get rid of.
Which credit cards should I keep?
There are several factors that should go into your decision as to whether or not you will keep certain credit cards. When you start looking at which credit cards to keep, think about what the cards do for you. Here are some things to keep in mind:
- Does the card have a rewards program? Does it actually give you something you want?
- Have you had the card for a long time? At least one of your credit cards should have been open for at least three years.
- What’s the interest rate? Will the company work with you to lower it?
Evaluate each card. There is no reason to have more than two or three credit cards. If you choose to keep the right ones (hint: department store credit cards are almost never the right ones), you can benefit greatly from credit cards. If you keep the wrong ones, you will find that you aren’t using your financial resources to their full potential.