hi i'm john ulzheimer, a credit expert who contributes to credit card insider.com. today's question is this: is there areason to carry both a visa and a mastercard? excellent question, and it kind of goes tothe root of, "how many credit cards should
First Premier Credit Card Reviews, i have, and what type of card should i have, in other words what variety of credit cards should i have. in my mind the answer is clearly yes. there are still benefits to carrying different types of credit cards, and
here's why. despite the fact that we'rein 2014 and most retailers will accept anytype of method of payment, plastic, cash, check, you still will find from time totime, retailers that refuse to take certaintypes of credit cards. so while it's very uncommon, yes, you may find a retailer who won't accept your visa, yes you may find a retailer that won'taccept your mastercard. i look at it this way: it's best to havemultiple credit cards and in fact i would even suggest having at least onecard
from all four of the major credit card issuing networks, so at least one visa, one mastercard, one discover, and one american express. this way you're going to ensure maximum usability because you're always going to have a method of payment that any retailer will accept as long as they take some kind of credit card. and believe it or not having all thesetypes of cards does not put you at risk to getting into more debt as long as you'reresponsible with your usage of the plastic. one of the benefits that you may not
think about by having all these different types ofcredit cards is the benefit to your credit scores. credit scoring systems like to see a lot of available credit on creditreports. in fact one of the most importantmeasurements in your credit score is called revolving utilization or your debt to limit ratio, and let meexplain how this works. your debt limit ratio is calculated bytaking
the aggregate balances on all of your creditcard so add up all the balances on all of your credit cards and then divide that number by the aggregate credit limits on all of your credit cards. so if you added up the limits on all of your cards you'd have your aggregate credit limit. you divide the balance by the limit, and that yields a percentage. that percentage is called your revolving utilization or your debt to limit ratio. the lower that percentage, the more points you're going to earn in not only your fico credit score but also your vantagescore credit score. so having a lot of credit cards, many ofthem being
unused, is actually going to help tokeep that percentage lower and your credit score higher. sowhile having a bunch of different types of methods of payment, visa, mastercard, amex, discover, helps in usability, in your ability to enact in commerce effectively without running into the hurdles of retailers who don't accept certain types ofcards, you're also going to have collateral benefit of having a more protected credit score because of all the unused credit limit. now, you don't want to use all those cards at the same time
because you don't want to have balances on each account at the same time so you're gonna wanna do what i call kinda the revolving door. so every month pick and choose a couple of credit cards, use those, pay them off at the end of the month, and put a couple of different ones in your wallet. use them the next month, pay them off, and just continue to revolve them from time to time. that way your creditcard issuer is not going to close the account because of inactivity. and you'll always have a method of payment, you're gonna be well protected because of the fair credit billing act's cap
on credit card fraud, it's going to help yourcredit score, you'll be in good shape. if you have any other questions pertaining to credit or finance topics, submit them to credit card insider.com thanks for watching, have a greatday.
0 Response to "First Premier Credit Card Reviews"
Post a Comment