How Many Credit Cards Should I Have?

Some people have just one credit card that they use for emergencies. Others have half a dozen credit cards (or more). But how much plastic is right for you? Weighing the benefits and risks of carrying multiple credit cards will help you arrive at the right number.

How credit cards affect your credit

Are you thinking of applying for a new credit card? It’s important to understand that credit cards can impact your credit score — in good and bad ways.

A credit card offers revolving credit, meaning you receive a certain amount of credit and can use it, repay it, and borrow again. You make monthly payments for every credit card you have, and your payment history has a significant influence on your credit score. If you have a lot of available credit but keep your credit card balances low, it can boost your credit score.

If you have several credit cards and have high balances, on the other hand, your credit score may sink. Also, if you have many credit cards but only use a couple, letting the others gather dust, your credit card issuers may reduce the credit lines of those rarely-used cards (or even close your inactive accounts), which can ding your credit score.

There is no magic number of credit cards that someone should have. It depends on each person’s unique needs, but read on for some general advice.

Is it good to have multiple credit cards?

There are certainly some upsides to having multiple credit cards.

• You’ll have more credit available for emergencies as long as you keep your balances relatively low
• You can maximize your benefits. You might have one credit card that offers travel rewards, another that offers cashback rewards for shopping, and a third that offers reward points for gas purchases or EV charging.
• Lenders and creditors will see that you can manage your credit if you make your monthly payments on time and keep your balances low

If you have trouble keeping your spending under control, however, having lots of credit cards may cause you to take on more debt than you should. Also, having numerous credit cards means keeping track of multiple due dates. The bottom line: if you’re unable to stay on top of your credit card payments — either because you missed a due date or because your debt has ballooned — your credit rating will suffer.

Credit Cards: How Many Is Typical?

Americans have, on average, 3.7 credit cards, according to Experian, one of the major credit reporting agencies. That’s 10% fewer than ten years ago.

How many credit cards is too many?

It’s a good idea to have at least two credit cards, which helps you build and maintain a healthy credit rating. You might get one card with a low APR (Annual Percentage Rate) for larger purchases, for example, and then get a rewards credit card for the perks.

Depending on your needs, you might want to add other credit cards into the mix. But before you do, consider the potential downsides. If having a wallet full of credit cards might tempt you into overspending, proceed with caution. And if you do take out multiple cards, make sure to stay on top of your due dates.

There is no maximum number of credit cards that someone should have. If you hold several credit cards that charge annual fees, however, keep in mind that those fees can add up. And if you apply for several credit cards at the same time, your credit score will drop.

Tips for managing multiple credit cards

The more credit cards you have, the easier it is to miss a payment. Take these steps to stay on track.

• Use autopay so you don’t need to remember payment due dates, or
• use a personal finance app to remind you of due dates, or
• arrange to pay all your credit card bills on the same day of the month so you only have to remember one date. Choose a date — say, the 10th of the month — and then ask each of your credit card issuers to make that your due date. (Most will be happy to change your due date, although they might provide specific dates from which to choose.)

Check your credit score regularly and make any necessary adjustments, such as paying down large balances if your score has fallen. The major credit reporting agencies — Equifax, Experian, and TransUnion — provide free weekly credit reports online. You can visit Annual Credit Report to request them.