I’m 35 with excellent credit (809-834), a mortgage and a car loan that’s about to be paid off. I only have one credit card and no other debt. My card has got a decent limit on it, but I occasionally put large purchases/home repairs on it that take me a while to pay it off. Credit Karma is constantly telling me that I need another credit card, and my husband who has like 3 cards never sees his credit plummet if it takes him a few months to pay off a large expense. I’m not super financially savvy, and I’m just wondering if it would truly benefit me to apply for another credit card or if Credit Karma is just trying to make commission on me applying for a card. If so, what should I get? My current card is a cash back card with a low interest rate, and I would like to travel more but not super interested in a card with high fees unless it’s really worth it.
Do I need another credit card?
byu/midwest_sweatervest inCreditCards
Posted by midwest_sweatervest
5 Comments
You should get a new card every time you have to make one of those large purchases that takes you a minute to pay it off. There are a ton of cards that offer 0% interest promo periods so you could pay those purchases off over 6-18 months without paying any interest.
You have a mix of credit. If you had one card and no loans, maybe. I went 12 years with only one card, and once I got my 2nd it hit my credit like a truck. But otherwise you are fine if you are okay with what you have.
Have a strategy for your future of credit card setup. Right now you probably want a cash back setup. Make sure you have one card that earns at least 2% on everything. Then look for cards that earn 3-5% on categories you use often.
Multiple cards with multiple banks.
Same with bank accounts.
It’s smart to have at least two cards, with different card companies. Cards get lost/stolen/hacked/frozen and you’ll want a backup card when it happens.
As for what card to get, what’s the cash back card you currently have? If you don’t have a flat 2% cash back card, get one of those. If you already have one, get a card that gives more cash back in your highest spending categories.