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I currently have 2 credit cards, one of which I make nearly all my purchases on (though it's always backed up from my checking account so I'm never in debt), and one which I never use and should cancel. I'm looking to maybe get a different one though...

If you only have the two cards and have a good credit history on both of them, you may want to keep the unused card for the benefit of your credit score. This article discusses the details: http://www.fool.com/investing/small-cap/2004/08/30/beware-of-canceling-credit-cards.aspx

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My dad says, that if you have too many credit cards, it can count as a liability against you when you apply for a loan.

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My dad says, that if you have too many credit cards, it can count as a liability against you when you apply for a loan.

This is true. If your total available credit, which is the total of all credit lines available to you, exceeds a certain percentage of your income, it can lower your credit score. That must be weighed when considering whether to keep or cancel old cards or if you are considering a new card.

Even if you have no balance on any line of credit at the time, if that credit is available to you it is a factor in your score. For all they know, you could max all those cards tomorrow and go from zero debt to total available credit in debt.

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I have two. Both are always paid off each month so interest is avoided.

One is for day-to-day purchases and preauthorized monthly purchases such as telephone, Internet, gas, bills, etc.

The other is hidden away at home and used only a couple times per year. This card is for online purchases (i.e. - on Amazon) and has the lowest limit possible. My theory is that, if somebody does ever get my card data, having an extremely low maximum will limit the damage they can do.

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You sound like a wise person DavidB!

Did you know that banks in the US mail out 8 billion credit card applications every year!

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> Did you know that banks in the US mail out 8 billion credit card applications every year!
And they wonder why there is so much fraud?

A couple of years ago, I was getting one or two of these PER WEEK. Some of them were disasters waiting to happen (we've filled in all your personal details for you, all you need to do is sign and return).
In the end I joined several mailing preference services and basically ticked "no" to all the boxes of are you interested in "foo". Now all my post is just the high value stuff which I expect to get.

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The flood of credit card applications:

My dad says, be careful when you trash these things. Someone can easily have a card issued in your name for his/her use. Tear them up in small pieces or shred them.

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