How many credit cards should you own?

Most Hong Kongers own credit cards, but many own more than just a couple of them. According to a 2017 survey by TransUnion, on average Hong Kong consumers have 4.6 cards in their names, that is twice as many as U.S. consumers.

Although it does not matter how many credit cards you own as long as monthly payments are settled on time, managing too many cards can become tiresome. For example, if you miss a payment, there will be handling charges and interest, and your credit record will also be affected. You may also forget about to ask for annual fee waivers. In addition, the more cards you own, the greater the risk of monetary loss when a card is lost.

Furthermore, if you are not good at managing your money, having more credit cards and a higher credit limit may result in you spending beyond your means and falling into debt. Many with debt issues begin their financial troubles from overdue credit card payments. Why should you pay off your credit card debts ASAP?

Generally speaking, keeping two to three credit cards is more than enough for everyday use. You can choose a credit card that best suits your spending pattern. Do not apply for a new card just for the welcome gift – there is simply no such thing as a free lunch. Gifts or discount offers usually come with certain spending requirements. What you pay may ultimately outweigh the marketing gimmicks. Also, you should consider cancelling any rarely used credit cards in order to consolidate and manage your cards more effectively.