Myth #5: “Keeping Multiple Credit Cards is Unwise”
While you certainly should be cautious while using your credit card, having multiple credit cards is not a terrible idea in itself. In fact, if you are smart, you can use it to your advantage. One of the factors that determine your credit score is the credit utilization ratio — the amount of credit you use divided by the total amount of your available credit. The lower your credit utilization ratio, the better it is for your credit score. If you have three credit cards with $5,000, $10,000, and $15,000 limit respectively, and spend $1,500 on average each month, your credit utilization ratio is 5%, which is excellent. As long as you keep a tab on your spending and pay off the outstanding balance in full every month, having multiple cards could actually work to your benefit.
