On a layover in Denver in 2006, I handed a kiosk the place a salesman was hawking Frontier Airways bank cards to anybody in earshot. I used to be in my twenties on the time, I had lately completed paying off my faculty loans, and my major monetary objective was staying debt-free. I used debit and money for many transactions, as my normal wariness of the credit score trade had saved me from opening a bank card of my very own.

That each one went out the window when the salesperson stated the cardboard got here with sufficient bonus miles for 2 round-trip flights. The prospect of visiting my girlfriend in Seattle twice with out paying for airfare was too attractive to go up, so I set my misgivings apart, grabbed a paper utility and mailed it in once I acquired residence.

After getting that first card (and the free flights that got here with it), my angle U-turned. Within the practically 20 years since, I’ve opened over 80 bank card accounts, 20 of that are presently energetic. These playing cards have helped me journey, pursue my passions and even save for retirement in methods I couldn’t have in any other case. They’ve additionally made me an professional on the broader perks and perils of bank card use.

Right here’s what I’ve realized by holding dozens of playing cards over the previous 20 years.

My early mistrust of bank cards was instilled by private finance gurus like Dave Ramsey, who advocates a debt-free way of life and famously discourages all bank card use. Ramsey’s teachings resonated with me as I labored to get out from below my faculty loans, and his methods for budgeting and saving helped maintain me on observe. However as soon as I spurned his recommendation and determined to get a bank card anyway, I noticed his causes for abstaining didn’t maintain water for me.

Due to my inherent thriftiness, I wasn’t frightened about overspending, and my apply of monitoring each greenback confirmed me that I didn’t spend any extra with a bank card than I did with out one. I paid my stability in full and on time every month, so I wasn’t charged any curiosity or charges. When utilizing my card wasn’t the best choice (like when a money low cost was obtainable), I merely paid one other means.

Moreover, I discovered there have been benefits to having a bank card. I began incomes miles on every greenback spent that finally netted me one other free flight. Some transactions went extra easily with a bank card versus a debit card, equivalent to renting a automobile or a lodge room. I additionally had restricted legal responsibility for fraudulent expenses, which I appreciated once I misplaced my card and another person took it for a experience at a Chicago shopping center.

Finally, I acknowledged my card for what it’s: a software. Like every software, it might trigger injury if used irresponsibly, however it served me properly when used accurately.

Though I’ve 20 energetic bank card accounts, I sometimes carry simply two playing cards once I depart the home. One is all the time my American Categorical® Gold Card, which earns bonus factors on eating and grocery purchases; the opposite card I carry depends upon the place I’m going, what I may be shopping for and whether or not I’ve a brand new card with a welcome supply.

A lot of my playing cards nearly by no means get used, however I maintain them for the advantages they supply. For instance, my IHG One Rewards Premier Enterprise Credit score Card offers me an annual free evening certificates and the fourth evening free once I e book with factors, and people two advantages alone justify paying the $99 annual price. Equally, The Platinum Card® from American Categorical grants me airport lounge entry, plus varied journey and different credit that present sufficient worth to maintain my account open regardless of the $695 annual price. Phrases apply.

Just a few of my playing cards don’t get used in any respect and supply negligible worth, however I maintain them for a wholly completely different purpose: to take care of my credit score scores, particularly if I’ve had the cardboard for a very long time. For instance, my Frontier Airways card has lengthy outlived its usefulness and now lives in a drawer together with just a few different bygone playing cards, however it’s my oldest energetic credit score line, so I need to maintain it open. I get away these playing cards annually to maintain the accounts energetic and my prolonged credit score historical past intact.

Of my 80 bank card accounts prior to now 20 years, I’ve closed the vast majority of them — for a wide range of causes. Typically a card falls wanting expectations, or a greater choice comes alongside that makes one in all my playing cards expendable. Typically my wants or a card’s advantages change so a card I as soon as valued is now not price preserving. Typically I merely dislike options like the net interface or customer support. Regardless of the purpose, I’m blissful to cancel a bank card when it’s not a superb match.

Early on as my bank card portfolio grew, I frightened that opening and shutting quite a few accounts would injury my credit score scores. Nevertheless, I discovered the other to be true: my credit score scores in the end grew resulting from all of the accounts I held.

That result’s a product of the elements that have an effect on credit score scores. Essentially the most impactful is cost historical past, which stays optimistic as long as I pay my payments on time. The subsequent most impactful is credit score utilization, which measures the quantity of credit score I exploit as a share of my whole obtainable credit score. Collectors favor low utilization because it signifies accountable borrowing. Every time I get a brand new bank card, it will increase my whole obtainable credit score and thus lowers my utilization, additional bolstering my credit score rating.

I did see some short-term damaging results on my credit score scores. Opening a number of accounts shortly led to a low common age of my accounts and excessive variety of latest functions, that are additionally elements in credit score scores. Nevertheless, these are much less consequential than cost historical past and credit score utilization, and their affect on my credit score scores diminished with time. Now my credit score scores are basically pinned to the highest of the dimensions, and the affect of opening or closing accounts is negligible.

Dave Ramsey’s view of bank cards conflicts with my very own expertise, however he makes some legitimate factors. Bank cards don’t work for everybody. Analysis reveals that bank cards are inclined to make folks spend greater than they’d utilizing money, and typical bank card rates of interest make carrying a stability painfully costly. For many who overspend or neglect to pay payments on time, any rewards or advantages a bank card provides will pale compared to its prices.

Now, I’m not right here to say everybody must have 20 bank cards. In reality, even in the event you’re getting only one card, figuring out whether or not a bank card will give you the results you want (or towards you) requires taking earnest inventory of your individual monetary and journey habits. It would even necessitate time to seek out high-value journey redemptions or observe the advantages that you simply use.

Most significantly, in the event you already function on a finances, spend inside your means and settle money owed on schedule, then including a bank card (or 20… strategically over a few years) to the combo shouldn’t throw you off.