Credit Card: How Many is Too Many?

How many credit card is too many? Then I have to ask you:

1. What is your purpose in owning the credit card?
2. How do you live your life?
3. Is there any obligation in owning the credit cards?

Every people have different purposes, and lifestyle. Every Bank and Credit Card has their own policy.

As the basic principle:

• 1 is GOOD,
  
• 2 or 3 would be IDEAL,
  
• 4 and more is a WASTE.

Remember, the most basic principle is, no matter how many credit cards you have, you must able to pay out all the credit card bill of your PERSONAL EXPENSES at the very first end of the month.

What really matter is not the quantity of the cards, but it is the sum of money you spent on the card, and you could pay out at the very first end of the month.

The reasons why we should have certain quantity of credit cards are:

1. If you are a WORKER that living by payroll, then 1 is enough to cover your PERSONAL EXPENSES. If the maximum balance of the credit card is not enough, then you could have an additional card.

2. The situation is different if you are an ENTREPRENEUR, BUSINESS PERSON, or SELF EMPLOYED. It will be very ideal to have at least 2 separate credit card. 1 credit card (or 2) for PERSONAL EXPENSES, and the other credit card (or more) for BUSINESS EXPENSES.
   Having separate credit card for business purposes and for personal expenses will make it easier to separate personal financial report from the business financial report. It will help the business.

3. If to have each credit card, you have to pay annual premium, then the less credit cards you have, the better. The logic is, why we have to pay something (annual premium) if we do not use the card?
   Of course the situation is different if you use the card for business purposes.
   You have to pay annual premium of the credit card. Your purpose to have the card is only to back up the business in case of emergency. The business profit margin could cover such annual premium expenses, then GO AHEAD, HAVE AS MANY AS YOU WANT and CAN AFFORD.

So, What do you think?

PS: Comments and corrections are very welcomely invited.

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Further Readings:

• Robert Kiyosaki's Books, especially Rich Dad Poor Dad.
• Various References.