i am coming to US, i don't know any thing about credit cared,
But i want to know how many credit cards are good to have and if i use my that credit card to pay for my all monthly expenses, and then at the end of the month when i get the credit card bill then i pay all at once from the money i received from salary, which is in my bank account.
I would like to have one bank account one credit card, once retirement account and and once brokage account for stock trading.
I am 20 years old.
Please help.
Regards,
MK
Answer MK, for most people, one or two credit cards is enough. And really you only need a second if you absolutely need a credit card and would have problems if your primary one was lost or stolen (for example if you have frequent business travel, even the week or two it would take to get a replacement card could cause problems).
Some people do without credit cards entirely, and with debit cards accepted almost everywhere that's an option too. But credit cards are handy for some purchases - car rentals or hotel stays for example, where the total charge isn't known in advance and they prefer a credit card (they'll put a hold on a debit card typically). Also, in the US the anti-theft protections for debit cards are a bit weaker than for credit cards. False charges on a stolen credit card are easier to sort out than unauthorized debits on a debit card. More on that here: http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre04.shtm
My best advice for you is that if you get one, never, ever use a credit card if you can't pay the balance in full at the end of every month (avoiding any interest charges). It sounds like that's your plan, which is great - stick with it. That one decision is a huge factor in your long-term financial security.
