Florin J asked:
I carry 5 credit cards in my wallet and spend across all the five. Though my expenses are not very high (they will actually fit into a card or two) I just collected these cards over time because the offers were good. Now I want to own just one or two cards. How do I choose which card to have and which ones to cancel?
I carry 5 credit cards in my wallet and spend across all the five. Though my expenses are not very high (they will actually fit into a card or two) I just collected these cards over time because the offers were good. Now I want to own just one or two cards. How do I choose which card to have and which ones to cancel?
If you have a mountain of cards, what should you do to trim them down? Here’s my recommendation for anyone dealing with a big pile of the cards.
• First, identify one to be your primary spending card. There is no universal “best card” for everyone. You should look at your spending very carefully and choose one that best matches your habits.
• Next, determine which card you’ve had for the longest period of time. Which is your oldest card? That card is the one that has the longest credit history, which is important for your credit report.
• Also compare the Features and Benefits associated to the Cards like:
o What’s the annual percentage rate?
The higher the APR, the higher your finance charge will be when you have a revolving balance. Most credit cards have a different APR for purchases, balance transfers, and cash advances. Make sure you know the APR for each.
o How long is the grace period?
Longer grace periods are better because they give you more time to pay your bill without incurring a cost for the convenience of using credit.
o What are the fees?
You should know the amount of any fees and the circumstances under which the fees are applied. The most common types of fees include: annual fee, Late fee, and over-the-limit fee.
o What is the credit limit?
Be wary of no-limit credit cards because they can sometimes look maxed out on your credit report. This can have a negative effect on your credit score.
o What are the rewards?
Some credit cards offer rewards for using your credit card. Make sure you fully understand the reward structure and the amount of purchases you have to make to receive the reward.
I hope this information will be useful to you
Do you pay the cards off every month? If so, keep he one with the best rewards program. If not, keep the one with the lowest interest rate and lowest fees.
Additionally, since your credit score is partially based on what percentage of your credit limit you use, using the card with the highest credit limit will help, or use just two cards to keep the percent used lower.
you keep 3 the ones with high limit and lower interest rate.
It’s actually better for your credit score if 3 cards become sock drawer cards. Keep them open, and every 6 months, purchase something on one of the cards, and then pay it off.
Keeping the oldest card is sound advice. The ones I use as daily cards are the ones which offer rewards. One gives me airline miles, and the other gives cash back.
First check the credit limits of all your cards and choose the ones with the highest credit limit. Alternatively for professional help on choosing the best credit cards try sites like. These ask for details of your credit card plans and suggest the best card with the least interest rate and most reward points.