In response to a user's question on social media, Cuban TikToker @yanetatlanta shared her thoughts on the ideal number of credit cards one should have. In her video, she first made a distinction between how beginners in the world of credit should operate and how those with more experience should manage their cards.
For those just starting out, she did not hesitate to recommend starting with just one credit card. While they can be incredibly useful tools, they can also lead to financial problems if not handled properly. "Credit cards are a tool that can make life easier and be very helpful in this country, but they can also lead to bankruptcy if not managed correctly," she added.
For individuals who already have experience and understand how credit works, she believes they can handle multiple cards, something she personally does and elaborated on in her video, which has received numerous reactions and comments.
"I have only one because I don't understand much about them"; "Honestly, I commend you. Your organization is admirable"; "I have only one, a question: doesn't your credit score drop when you apply for more cards?"; "Hi, could you explain how to use and pay a secured credit card to raise your credit score? Do you recommend paying multiple times before the statement closes?"; "Please teach us how to pay like you do, so we don't pay interest to banks. Thank you"; "When paying the cards, do you set reminders on your calendar so you don't forget, or do the cards notify you?" were some of the comments she received.
"It's not good to cancel a card; it lowers your credit score"; "Banks not only make money when you pay interest, they also earn commissions when you use the cards"; "Canceling a new card doesn't affect your credit. It only impacts your score if you cancel an old card"; "Everything you said is great except for canceling the card; doing that is not good for your credit score"; "I have only one and don't want more; it's tempting to go into debt"; "I prefer not to have cards; we humans are emotional and often give in to the desire to buy"; "You don't even know what you're talking about," others commented.
Key Questions on Managing Credit Cards
For those seeking to manage their credit cards effectively, here are some common questions and answers based on @yanetatlanta's insights and user comments.
How many credit cards should a beginner have?
Beginners should start with just one credit card to avoid potential financial issues and to learn how to manage credit responsibly.
Does applying for multiple credit cards lower your credit score?
Applying for multiple credit cards can result in hard inquiries, which may temporarily lower your credit score. However, responsible use and timely payments can offset this over time.
Is it bad to cancel a credit card?
Canceling a credit card, especially an older one, can negatively impact your credit score. It's generally better to keep older cards open and in good standing.
How can I raise my credit score with a secured credit card?
Using a secured credit card responsibly, by making timely payments and keeping balances low, can help raise your credit score over time. Paying multiple times before the statement closes can also be beneficial.