Credit cards number or proper disposal?

Today many credit users have more than one credit card. In the United States, the average cardholder has seven credit cards and two debit cards, according to www.card trak.com, which provides consumer information about credit cards.

Is it paying to have several cards? Some analysts think that the matter is not how many plastic cards may be used; the question is how the credit is utilized. Others find having a few cards as a part of the strategy to help achieve or maintain a good credit score.

Consumer experts state that if you have too many credit cards this fact can make a creditor view you as a poor credit risk. That's because having all that plastic at your disposal means that you have the potential to run up large balances in the future.

Emily Davidson, a credit expert at the personal finance Web site, www.credit.com, puts more emphasis on credit utilization than the specific number of cards held by a consumer.

"It's one of those topics people always want an easy answer for - like six - but unfortunately that's not the way it works. It's actually a myth that you can hurt your credit score by having too many credit cards. That is not true. ... It's not about the number of cards. It's really about how you are using the cards," said Davidson.

One group of experts recommends keeping the balance to no more than 50% of the available credit limit, another group advises to keep 30% and one more group says that the balance should not exceed 10%.

Thus, if a customer has more spending than he may utilize with the credit card, he would better consider using another card with higher credit limits.

"It depends on the type of consumer you are. If you carry a balance from month-to-month you need one credit card and that is the one with the lowest possible interest rate you can find," says Bill Hardekopf, chief executive officer of www.low cards.com, a Web site that helps consumers compare credit cards.

"If you do not carry a balance, I think you need one or two rewards cards and that depends on the specific rewards you might be after. You might be able to get a great gas rebate on one. I do not believe you need a whole bunch of credit cards. Carrying too many credit cards can affect your credit score negatively, which can affect your interest rates."