How Many Credit Cards Should You Own In Singapore

number of credit cards to own

Here’s a guide on how many credit cards you should own

Credit card perks are great and many want in on these good deals. In Singapore, there are about 9 million credit cards are in circulation and close to 2 million credit card users. While credit cards may be a sign of high status and luxury in the past, it’s become commonplace for the average person to have at least one credit card in their wallets.

That being said, too much of a good thing may be a bad thing especially when it comes to credit cards. Yes, there is such a thing as owning too many cards and each card serves a specific purpose. Here’s a guide on the recommended number of cards you should own.

Enjoy cashback with the first

Most card users have a “main” card — the card they usually spend with. These cards are usually cards with great cashback perks so you can pay less for daily necessities. Expenditure on groceries and utilities are usually charged to this card. Depending on the card, you can earn up to 8% cashback — a pretty significant amount when it adds up.

Earn rewards with the second

Does your disposable income usually go to retails and restaurant? If you do, get a second credit card to earn rewards on goods and services you frequently spend on. You’ll be able to enjoy dining and shopping perks with this card and earn retail rewards with it. If your disposable income goes towards travel, then get yourself a card that earns you miles! Knowing what you enjoy spending on is key because it helps you decide which credit cards to opt for.

In general, it’s best to own one MasterCard and one Visa card because some establishments only accept one of these credit payments. You don’t want to lose out on rewards just because you don’t have MasterCard or Visa.

No more than 4 cards

Usually, 2 cards are enough for most but if you drive, you may want to have a card specifically for petrol expenditure. If you’re great at keeping track of your expenses, you can own three or four cards to help you earn more rewards. Since each card has its own billing cycle, having multiple cards can be bothersome and may even cost you, literally. Fees for late payment are hefty and you’ll be in for a rude shock if you forgot to pay the bills for a few credit cards.

Earn benefits with credit cards, not pile up debt

Think of your credit cards as a means to earn perks, and not a means to let you spend on goods and services you can’t afford. No matter how many cards you own, it’s important to keep this in mind in order to get the most out of your credit cards.

All in all, there is no hard and fast rule to the number of credit cards you should own. What’s more important is being strategic with your credit cards. Each card has a different scheme that benefits different consumers. While having 2 to 4 cards is recommended, you can own more depending on how well you keep track of your finances. At the end of the day, it’s all about knowing how to manage your spending and that could mean opting for a new card, or cancelling a card at the right time.

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