AR Debt Relief

3 Common Credit Card Questions Answered

New credit card holders often have a bevy of questions that are not readily answered by customer service representatives. They are not alone. Many people who have held cards for years still have occasional questions. Here are the three most frequently asked questions holders have.

  • How many credit cards should I have?
  • While there is no magic number, most families will be fine with just two credit cards. One should be in each adult’s name to maximize both credit scores.
  • Why shouldn’t I run up charges that come close to my credit limit, as long as I don’t go over it?

Your credit score is somewhat based on your credit to debt ratio. The lower your balances, the more it helps your credit score. You are begging for your credit score to be lowered if your balance exceeds 30% of your credit limit.

Should I cancel old credit cards?

No. Even if you no longer use the cards, you should keep the accounts open. Closing unused accounts will lower your credit to debt ratio and make your credit history look shorter. Both will lower your credit score.

There are many more questions that you may possible have. Never be afraid to call the customer service number on the back of your card, or contact us here at Debt Consolidation Florida – it’s free!