Is 25 Credit Cards Too Many?
A big topic in the personal finance blogging world is often credit cards vs. debit cards. Another, somewhat related topic is how many credit cards should a person have? This is not a one-answer-fits-all sort of question, but I feel pretty certain that most people would agree that 25 credit cards is a bit much.
Meet Pete DArruda, not only does he have 25 credit cards with a total available credit limit of $300,000, but hes proud of it!
The crazy thing is hes a personal finance consultant!
Why would anyone, much less a finance consult, think so many credit cards is a good thing? Well, its about the almighty credit score. See, one of the major factors in determining your credit score is whats known as your debt-to-available-credit ratio (or utilization rate). This is simply a ratio of how much you currently owe to your total available credit.