Finance - Credit Cards

Greetings Swarm Single Moms

What's in your wallet?  If you are like the average American,  you have more than one credit card in that wallet.  In fact, according to a variety of sources, most Americans have  3 (+) credit cards.  This is insane, isn't it? Or is it?

Time was ... if you had a visa or mastercard, you could make purchases with either one, where ever you shopped.   Today it is a different story.  Some stores accept one or the other, but not both.  Costco, for instance, does not accept Visa.  I only have Visa, so when I shop at Costco, I pay cash or write a check. It is to the credit card company's benefit to work with a retailer to ensure that only their cards are accepted.  Is it a benefit to the consumer?  Maybe!  Because you do not need more than one or two (at the most) credit cards and limiting the number of cards you carry, can work to your advantage, especially if you earn reward points.  Consider this, if you are consistently pulling out the same card to swipe, you will earn points quicker than if you were using two cards interchangeably.  Also, having a limited number of cards on hand may limit the amount you spend and if overspending is an issue, this may be an easy way to avoid that.  Another angle to consider when deciding whether or not to increase your card holdings is  your credit report.  If you can charge on your cards and pay the bill every month you will improve your credit score and get the best interest rate when making large purchases (i.e. automobile), but if you carry too much debt, it will serve to lower your rating and your score, which will make it costlier to obtain a loan.

Today, check your wallet.  How many cards are in there?  Which ones have a low interest rate?  Which ones have a high rate?  Do you earn tangible rewards with any of the lower rate cards and are any of those accepted at places where you shop the most, including gas stations?  This is your finance challenge today.  It should not take too long to investigate the numbers, since the last focus was organization and you should have all your credit card information filed away, nice and neat and in a place where it is easily retrieved.  Until next time... Sharon - Director at Swarm