PTT: Credit Card Chaos

Professional Tip Tuesday
Well folks, I have an update on the credit card conundrum. As I told you a few weeks ago, I am trying to take advantage of all of this travel and rack up on the rewards points.

Photo Credit: Petr Kratochvil, via Wikimedia Commons

So as I was trying to weigh the pros and cons of adding yet another credit card to my wallet..
2 major credit card questions had me worried.
     1. Is it ok to close old credit cards?
     2. How many credit cards is too many?

It is not easy to find straight answers to credit card questions. Everyone has an opinion, and Google searched are overwhelming. But I finally hit the jackpot. Have you heard of www.mint.com? It's a free website that helps you keep tabs on your finances. They also have a great blog with lots of articles that cover all sorts of topics!

So here's what I found out... 

1. Is it ok to close old credit cards? 
• Yes. According to the article 6 Credit Myths That Refuse to Die, "Not only do closed credit cards still factor in the age related metrics of your credit scores, but they even continue to age after they’ve been closed."
2. How many credit cards is too many?
• Personal preference. It doesn't matter as long as you keep a low balance on all of them. The article How Many Credit Cards Should You Have? pointed out that it might be good to diversify with different kinds of cards (Visa, Mastercard, American Express, etc).

Those articles helped me to better understand the ins and outs of credit cards. I applied for my second rewards credit card. But just to be safe - I am only using it for my business trips, and paying it off in full every month. What credit card tips do you have? Comment below!