how many credit cards is too many reddit This is a topic that many people are looking for. bluevelvetrestaurant.com is a channel providing useful information about learning, life, digital marketing and online courses …. it will help you have an overview and solid multi-faceted knowledge . Today, bluevelvetrestaurant.com would like to introduce to you How Many Credit Cards Is Too Many?. Following along are instructions in the video below:
“Guys. It s sebastian from smb and today we re going to talk about how how many credit cards is too many but first if you are new here we all about how to maximize the value of your credit cards so how to get the most cash back and also how to travel for free and that sounds. Interesting that s a start our channel. But let s get started if you came to this video.
Expecting one specific right answer then that s not going to be the right video for you so. It is really subjective. And there s kind of two sides of it the first side is based off the individual person and the second side is based off the numbers. We re going to focus on a former first just because that s more likely to affect you than the latter.
So again based off you as a person. There s kind of two things we need to consider the first part is your self control and the second part is the time commitment. But you need to spend to do this well self control. This basically means how you react when someone gives you a credit card.
So do you look at it as a way to basically spend money that you don t need to spend or is it more something that you do responsibly where you re spending money as you would a debit card. If you get a credit card and your first instinct is to max it out and to go on a shopping trip. Then maybe that number for you is actually zero and not even one did for someone using it as a debit card and you re getting positive expected value from your transactions and maybe you re optimizing every transaction that you have to make sure that you re getting the most cash back. But maybe that number is twenty or thirty.
So it really varies just depending on how you personally manage your finances for people who go on shopping sprees when they get a credit card. My recommendation and i know it s a bit different than a few other finance people would be that you actually want to use that more like a debit card and the way you want to do that is to pay it off every single day. So for example. Let s say you go out to eat today.
And you spend let s say ten dollars and you go buy some clothes. And you go maybe buy some other electronic stuff or whatever else at the end of the day. When you get home look through your transactions and pay off the card..
Even if it doesn t post to your account. Yet you can still most likely pay it off the main reason for this is because it rains our brain to treat it like a debit card so it doesn t really make sense to get rid of your credit cards as a whole and i dunno again some finance people who are like credit cards are evil you just shouldn t have them i think it s basically becoming very attuned to how they work in understanding. How you yourself works. Just so you have better self control.
And yes. There are a lot of ways to automate this. But one of the main benefits of paying it off daily is that it again really cleans your brain too see the transactions as they happen and to really associate credit card payments and debit card ones this whole process probably takes five minutes and for you it s going to save you a ton of money it s going to protect your credit score. And again you re not paying interest and you re also getting a ton of rewards from your credit card.
Most likely ever someone who s looking to go off the grid. So let s say you re not looking to rent a car or buy a house eventually or even rent. A house then maybe this works out for you where you get rid of your credit cards. But to me i think it s a really bad idea.
I think you re effectively overreacting to the credit card as a whole and again. It s more about self control than the instrument a really good example. I like to give and i do realize that some people are probably going to hate this but i think credit cards are like alcohol for some people it s really bad and they should avoid alcohol and credit cards. Because it s going to get them into trouble and by avoiding it completely it works out better for them for most people.
Though. I think alcohol is fine again. It s really more about the person and their own self control. Rather than the instance of the substance as a whole then again.
I realize that s why some people who maybe have these bad reactions to credit cards end up basically preaching that credit cards are evil. But i again sort of feel like people aren t looking at it objectively. They have to kind of look at it from other people s views as well..
So you kind of have to balance everything the other major constraint is time and this one s kind of interesting just because i do know some people who are like hey. I just don t have time to deal with this this is too complicated that s fine. And i kind of get that but again managing the cards themselves isn t too much work. I think a lot of the hard work comes in researching and that s kind of where i come in because.
I m kind of hoping people with that and basically easing the whole process. But in terms of managing your cards. There s so many ways to automate. It for me today as well as for when i had one card.
I still kind of check my credit cards once everyday and it s not too much work just because i can do most of this while watching youtube and doing other tasks for a lot of credit cards. When you log in you actually see all of them meaning that you re not really spending as much time. As you might be thinking managing these cards so for example. If you had five chase cards.
When you log into chase you see all five of them so you can see if there s any weird transactions. It s not like you re logging to five different sites and again this whole process whether you re checking your transactions or paying off your cards probably takes me five or 10 minutes. That s probably less than the span of the stu tube video. Which is pretty easy to do if you do watch our videos.
If you want to make the process a bit easier for yourself. And also secure your accounts a bit better i look into a password manager. So one pass and lastpass are both very good options. And again they make the whole process a lot easier logins for sites.
If you have 20 minutes. One thing you can do is to automate everything so this is what my friend does and he has 30 credit cards of automation. There s really three things you re trying to do the first one is the track transactions..
The second one is to pay out the cards and the third one is to keep the cards alive for the first one it really depends on you so. If you re looking to only track their big purchases. So again. If your biggest concern is someone steal your card and doing something crazy.
Then you might want to set alerts for anything over 100 or maybe 50 or whatever your specific number is these alerts are pretty straightforward and they re free to do for most of these credit card companies. But basically any time there s a transaction that s higher than the number you set you ll get a text message or an email or both a really good hack again if you don t mind. It is to set it so it s super low the lowest. It can be that way you actually get in the message.
Every time you do a transaction and again this helps to catch anything you might know money keep paying for maybe you have a netflix account or hulu. Account that you no longer use and you re like hey i keep getting these messages. And it s a reminder for you to cancel it some people find the super low limit alert. Annoying.
But for me. I ve gotten kind of used to it because it s kind of just telling. Me that hey yes. This transaction went through the second part of this is automatic payments and most of these credit card companies to allow you to automatically pay off the full balance at the end of the month.
So again pretty straightforward there for the third one keeping your cards alive. There s a few different ways to do it. But the main takeaway is that you want to use your card at least once every six months. It really depends on you though so if you do have a lot of subscriptions.
Let s say you have hulu or netflix. Then having it on different cards. And then having those auto pay works out really well if you don t have a lot of subscriptions..
But you do shop on amazon. One thing you can do is to use your cards to create an allowance and maybe i ll make a future video on this. But the idea is that it automatically reloads your amazon balance. The hawaii life allowances is that you can give a certain amounts of your kid.
But you can actually allocate that for yourself. So it works out really well looking at this from how the credit score is calculated. I recommend credit karma just because it s really easy to understand. But you can go to each of these specific ones that you re looking for and see how the stats were driven based off this you should technically have twenty accounts.
But it s a relatively low impact factor having those accounts don t really make that much sense. If your utilization is really high rpf defaults. If you have a super low utilization and your payment record is spotless. Then that s fine to have a ton of cards.
So it s kind of a balancing act and we ve talked about this in a ton of other videos. So i m not going to focus too much on it i think the main takeaway to this is that there s not really a specific number. It really just depends on you so again a lot of people are probably going to come to this video. Expecting one right answer.
And it was not really a right answer. So i hope that was helpful and let me know if you guys have your questions. My question for you guys is what is your number let me know in the comments down below. If you like this video give it a thumbs up it really helps us out and if you know anyone else could benefit from what we just talked about feel free to share this video with them because it s probably going to help them out otherwise hope you guys liked it see you next time ” .
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