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I came across this article, 6 Good Reasons to Have Multiple Credit Cards (and the reasons why) on Yahoo! Finance and it made me chuckle. I thought I would share what it had to say and reasons why I don’t think it’s that great of an idea.

1. Financial Safety - If your wallet or purse is stolen you’ll have a credit card to use while you wait to have the cards replaced.
2. Rewards - Consumers can get cards that give reward points for each dollar spent.
3. Credit Score Aid - Having a lot of activity and responsible behavior reported to the bureaus is good for your credit score.
4. Staggered Bill Pay - Consumers with multiple credit cards can plan their spending so that it coincides with their bill cycles.
5. Easier Bookkeeping - A person with multiple credit cards can set aside a single credit card for work purchases
6. Leverage - You can play one bank against another to give you the best interest rate and for the best perks.

I can think of 6 Good Reasons NOT to Have Multiple Credit Cards.

1. Financial Safety - A cash emergency fund is a better alternative. Nobody is going to steal the bank.
2. Rewards - Peace of mind. Not having to worry about how to pay the bill when it comes in.
3. Credit Score Aid - I understand the importance of having a credit and FICO score, but if I don’t plan on borrowing money, why should I care?
4. Staggered Bill Pay - What bill? I use cash to make my purchases.
5. Easier Bookkeeping - My online banking statement works fine. Importable into MS Money and/or Quicken with a click of a button.
6. Leverage - Cash. No bills. Financial Peace.

I don’t see why you would really need to have more than one, unless you are trying to get out of credit card debt and you transfer one balance to a 0% interest. However for everyday use, one is more than enough, especially if you don’t normally pay your balances in full at the end of the month.

Credit Card image originally found here.