credit cards
How many bank accounts and credit cards should I have?
I am currently a college student with 2 checking accounts (Wamu- 3 years & BOA- 1 year) and 1 credit card (Citi- 1 year). I have always met the requirements for my checking accounts and paid all my credit card bills on time. As for loans, I do have about $10,000 of student loans in debt. I was wondering if it is okay for me to get another credit card. Also, many say that having a lot of credit cards are bad for you. What is the reccomendation of how many bank accounts and credit cards should I have so that my credits would not go down? Thanks in advance!
It’s not uncommon to have multiple bank accounts with different banks, from my past and current experience, I primarily do all my business with one bank if possible. I’m going to list the types of accounts that you should have in order to prepare yourself financially:
1. Checking account- This is the primary tool to not only monitor your finances, but to pay all your bills on time.
2. Savings account- This should be used as a primary reserve that should be used in the event of emergencies and as a backup reserve to your checking account.
3. Traditional/Roth IRA- This should be your primary retirement account. Anytime that you have a 401K,402g, or 403b plan, and plan to switch employers, this would be the account to move or “rollover” your retirement savings to.
Now as for credit cards, You should have 2 major credit cards and 1 department store card. Some people have more credit cards, but actually fewer cards established for a longer time, should be all that’s necessary. The longer you establish credit by making payments on time and managing your available credit responsibly, the credit limit can and usually is increased to where that will be all you need. Some people have multiple credit cards for whatever reason, but the 2 most important things to remember when using them is to pay on time and manage your available credit.
My partner and I have been looking at buying a house but we can’t get a large enough mortgage. It seems the only way to get a higher one is to get a higher credit score. I have never been in debt, he has a CCJ from years ago for about £800 which has been paid fully for over a year and our income is low. I am thinking of getting the card only in my name. Basically, the card would be used for ID purposes and small purchases just to get a credit score so I would want one with no annual fees or anything like that.
I’ve just looked at a few cards and I am confused! I have seen a couple which look good but I am still not sure.
We have both previously had a Capital One and so have both my sisters and several other people I know, we all had problems which the company chose not to deal with so that one is definitely out of the question.
We don’t have the option of shared ownership or moving to a cheaper area. And judging by some of the things I have seen/heard, this IS a cheaper area!
