<p>As a student, I’m well off with just one credit card. But it seems that adults tend to have several of them. What are the main reasons for having more than one?</p>
<p>I know for one that my parents have personal credit cards and company credit cards. The company card is used for work related expenses, which for their company includes cars, gas, meals during the work day, computer expenses, etc. They may have two personal credit cards for different types of spending on different types of credit cards (with different rewards and policies), but I’m not sure if this is still the case.</p>
<p>Many people carry around credit cards specific to one department store because the store offers them a big discount on the day they fill out the application, and then maybe send a discount coupon every month or two. If you fall for this ploy often enough, you end up with a wallet that weights about 3 pounds and a lot of mail you don’t need. We’ve ditched everything except two general-purpose credit cards (i.e. not store cards); one is used for all internet purchases and one for everything else. You are smart to just stick with one, since it makes it much easier to keep track of what you owe.</p>
<p>I don’t have many but I have enough for coverage - </p>
<p>Costco AmEx card - I use as much as possible since they pay cash back. They basically pay me $500 per year to use their card.</p>
<p>AmEx isn’t accepted everywhere so one should also have a Visa or MasterCard which can be used virtually everywhere.</p>
<p>IMO there’s no need for gas cards, retail store cards, etc. since those locations will accept one of the above two cards.</p>
<p>Recommendations - Always pay off the card every month so you never have to pay interest. This way the interest rate is of no ‘interest’ (pun intended). If you can’t afford to pay cash for the purchase, don’t buy it. Credit cards should never be used for consumer ‘loans’ as they’re too expensive and you probably don’t need the item that badly anyway.</p>
<p>UC^2 dad nailed it. Different credit cards have different kick back schemes, and different features. For example, one of my card allows me to generate a one time use credit card number for a specific amount valid up to specific expiration date. It even fills up the merchant form. I use that card for on-line shopping. A deciplined user can get several hundred dollars out of those schemes. Now with on-line bill pay it is no trouble.</p>
<p>I have 3 …</p>
<p>company card required to use for buisiness expenses</p>
<p>personal Amex card which gives the best kick-back</p>
<p>2nd personal card for places that don’t take Amex (and there are a bunch)</p>
<p>no gas or store cards and we pay off the balance every month (I think 3 interest payments in 25 years; one of which was caused by an oversight). Credit card debt can be brutal but credit cards can be a great positive financial tool if used certain ways.</p>
<p>I use Discover for the kickback. And when stores won’t take it I use a Mastercard. I have a couple of store cards which I got for the big discounts. I don’t carry them around with me, but if they are offering discounts when I’m in the store, I can usually use the accounts anyway, by showing them my driver’s license.</p>
<p>Business credit card in both names–only for business expenses–gives enormous amounts of airline miles. Personal credit card with only my name on it–because I discovered my credit rating was lower than my husband’s even though ALL of our credit was joint; miles on Northwest, which can be used to upgrade Hawaii flights. His personal credit card with only his name on it, American miles. That’s it. We like to travel, and actually use almost all of our miles every year.</p>
<p>LL Bean - free shipping and monograming. Cash back on purchases. Only use at LL bean.</p>
<p>Costco AmEx - 1% cash back. Only use at Costco</p>
<p>Capital One - Miles on airlines. Main card, use everywhere including bill pay. Pay off in full every month.</p>
<p>Amazon.com - Offered something off to apply and then give back certain percentage a year. I only use on-line at Amazon.</p>
<p>Southwest - emergency card for daughter, she flies SW quite often. Her Capital one card has too low credit limit for use in overseas emergency.</p>
<p>Why use my money when I can use someone elses? :)</p>
<p>Rewards cards … that’s the way to go. I have three major bank cards … one Amex and two Visa. I do not pay finance charges because I pay the balance in full by the due date each month. I get rewards from using my card, so in essence, I am being paid to use my credit card! I do not recommend that practice for everyone. If you do not practice self-control, you can get into loads of trouble with a credit card. I have several store cards, again for the rewards. I receive special coupons and discounts that others without the card do not receive. I have one gas card that I rarely use, but I wanted my DD to have it (she’s an authorized user on the card) in case of emergency, especially with her being 6 1/2 hours away. </p>
<p>Last summer, before leaving for college, my daughter switched her bank account from our local credit union to Bank of America. They offered her a credit card which she initially refused, but the banker and I encouraged her to take the card, something she’ll need to build her own credit. She refused to use the card until I explained that she won’t build her credit by simply having the card … she has to use it. She has taken my advice, has never been late on a payment, pays the bill in full and has an excellent credit score. With her blessing, I open her statement each month and file them away for her. I also e-mail her to let her know when her payment is due and she transfers funds online to make that payment. If you do not practice self-control or are irresponsible with money, I do not recommend having a credit card.</p>
<p>"Parents: why do you have so many credit cards? "</p>
<p>Cause we’re old. That’s what happens you get married, you get credit cards, you have debt besides your college loans, you have children (whom wipe any savings from your life) and buy stuff. </p>
<p>Just wait child, just wait. It’s just like the “invasion of the body snatchers”. One day you have one card in your wallet. The next day, seven. </p>
<p>I have cards for alot of reasons and uses. The lamest being some of you kids don’t know how to deal with cash or make change. Offer to pay cash at a hotel sometime, they freak. The best reason record keeping for business purposes.</p>
<p>You, young student, can get by with just one b/c you don’t have kids that think you are an ATM machine! Plus, as MathMom said, not every place takes Discover, my usual preference. I only have two cards now (after juggling debt big-time during/after law school): a Discover and a MC that I’ve had since age 18, started as a joint account with my old man.</p>
<p>I mainly use my Costco Amex for the annual rebate $$.</p>
<p>I use Alaska Visa to buy Alaska tickets for the double miles.</p>
<p>I use specific store credit or Visa cards only if they are offering a % discount on purchases that day. Before I leave the store, I go to the customer service department and write a check to pay for all the purchases I have just charged. </p>
<p>I always pay the full balance (usually electronic transfer) when the bills are due. The one thing that aggravates me 
is the short turn around time most of the charge card companies allow before the interest starts to accrue.</p>
<p>Oh I understand now…</p>
<p>By the Costco Amex do you mean the American Express Blue Cash credit card?</p>
<p>AMEX Blue may also give a cash rebate, but I have a Costco AMEX. It is a Costco membership card and American Express credit card combined. There is no annual American Express fee but you pay your customary Costco membership fee. This card gives you a 1% rebate on all purchases, except 2% on travel related charges and 3% on restaurant charges.</p>
<p>“The one thing that aggravates me is the short turn around time most of the charge card companies allow before the interest starts to accrue.”</p>
<p>The solution is simple. Go on-line to that credit card account. See your balance and pay it off. Just don’t wait for the mail.</p>
<p>Another reason I have many credit cards is that the companies offer me money to have their cards. For example, recently Chase offered me $250 to try out one of their credit card.</p>
<p>I agree with you tutu taxi about the short turn around time. I pay all my bills on-line and never charge more then we can afford, it’s more that the credit card companies are encouraging penalty fees by making the due dates much shorter then they used to be. As soon as I get a bill, I put it into my bill pay on our bank account and then I don’t have to think about it later but it still ticks me off.</p>
<p>answer to the original question: because they aren’t that bright.</p>
<p>We try to charge everything (and I mean EVERYTHING) on one Visa card to get the airline miles. I think it is wise to have one other credit card for emergencies (Vendor doesn’t take card A, some strange problem with card A - it gets refused for some unknown reason), so you need to use card B,</p>
<p>but I must confess, I have a drawer full of unused credit cards that I used to collect like stamps. I had this fantasy of accumulating 200 credit cards and maxing them all out with cash advances and leaving the country…</p>