So I just got approved for the rbc ion+ visa and coincidentally got approved for the amazon mastercard that I had applied for a while back. Now I've never really had a credit card until now so 0 credit history or anything and I was wondering if it would be smart to have 2 credit cards a month. In terms of me im pretty responsible, not the kind to buy stuff I can afford but I was wondering if having two credit cards would maybe negatively impact me? or positively impact my credit? and any other pros or cons to this approach
Is it smart to have 2 credit cards at 18?
byu/Hour-Possession-7280 inpersonalfinance
Posted by Hour-Possession-7280
10 Comments
So long as there is no annual fee and you’re ALWAYS paying the statement balance before the due date so that you don’t incur any finance charges then there is no harm at all.
Just keep them paid off, you’ll be fine.
In addition to everyone else saying pay off each statement on time and never carry a balance.. assuming you are doing that
Use them both. They like to see you using them both and then they’ll grant you credit increases. What do you do with credit increases? Basically nothing, but it helps your credit score.
It’s how you use the cards that’s more important than having them.
I don’t think there’s a ton of impact in having 2 cards vs 1 card. But either way as long as you pay them off every month on time then you’re building up your credit score.
There’s some simple stuff about credit cards that will save your life in the long run.
That ‘available credit’ is not money. It’s not. Pay off your credit cards basically as soon as you use them. Why not just use a debit card? Because credit cards have bonuses and credit cards, unlike debit cards, they can have transactions challenged.
To start with, only ever spend money you’ve already got in the bank to pay it off. Spend the money on the credit card, and go pay it off. Once you get used to using a credit card, just set a monthly calendar alarm twice a month, and pay it all off. 1st and the 15th. Every month has both of those dates. Just pay it all off twice a month.
Second, should you have two or more cards? Sure, you can manage that. Some cards have minimums monthly they expect you to use. and if you aren’t using them, that can cause issues.
Here’s what I have done basically since forever. One card is your monthly bills card. Pay your car insurance, your Netflix, your other monthly recurring stuff on this card. If you’re renting and they accept a credit card, go for it, as long as you have a high enough limit on your card. This card is just for that, and it’s always a sort of stable amount each month.
The second card is your spending card. Go buy lunch? Use this card. Go get groceries, use this card, etc. You’ll always have something in a month you need to buy, so if there’s a minimum on that card, you’ll always be hitting it.
Then just use your cards. Pay them off, and in some years, your credit score will be 700+ easy. That’s all I did, and mine is great.
Credit cards are more about budgeting and self-control than anything else.
Getting a credit card at 18 really helped my credit score which helped me buy a house and a car later on in life. Pay them off and it’ll be really good for you long term.
As long as you payoff the entire balance at the end of the month you will be fine, but if you start carrying a balance month to month you will be part of the so unfortunate statistic of being in perpetual debt.
Credit cards are for convenience, not for credit, a wise friend would usually say.
I like having two different cards in case one gets compromised and shut down, I still have another that works. I once had a credit card used illegally, and the bank shut down both my credit and debit card, leaving me stranded with no way to pay for gas, so now I keep cards from two different providers as well as some cash in my car.