There is no perfect number of credit cards to have. Once you begin exploring credit card offers, you’ll quickly notice how wide and varied the best credit cards are. From travel rewards to cash back and 0 percent APR offers on purchases, it may feel difficult to narrow your choices. Show
In some cases, carrying several credit cards makes a lot of sense. In others, you’re probably better off with a single credit card that meets all your needs. Here’s what you need to know about having multiple credit cards, plus tips for how you can most effectively pair them to maximize your rewards. Is there such a thing as too many credit cards or too few?There is no universal number of credit cards that is “too many.” Your credit score won’t tank once you hit a certain number. In reality, the point of “too many” credit cards is when you’re losing money on annual fees or having trouble keeping up with bills — and that varies from person to person. If you are “Type A” and incredibly organized, you may be able to have 10 or more credit cards and keep track of their benefits, fees and payments without any problem. If you travel all the time and maximize travel credit cards like it’s your part-time job, then having an array of credit cards with different perks could even be incredibly lucrative. Then again, it’s easy to become overwhelmed with different credit card earning rates, rewards programs, fees and payment due dates. You may realize you’ve reached your limit when you begin getting your cards and payments confused, or can no longer keep track of the perks each one offers. On the flip side, having a thin credit file can make it difficult to render what kind of borrower you are. Lenders typically view this as a risk, and it can be harder to obtain a high credit score when you have four accounts or fewer. Plus, your credit behavior can have a bigger effect on your score when you only have a few accounts. Think of it this way: It is much easier to reach your overall credit limit with a few cards, and this can have a negative impact on your credit score. How many credit cards should you have?Your magic number of credit cards is a conclusion you’ll have to reach on your own. For reference, the average American has between three and four credit cards. Where you fall around that baseline should depend on the following factors:
The minimalist: 1-2 credit cardsFor those who like to keep it simple, one or two credit cards should be a good fit. If you only have one credit card or are choosing a starter card, we recommend choosing a no-annual-fee flat-rate cash back card. You’ll earn a little cash back on every purchase and won’t need to keep track of bonus categories or annual fees. If you feel like you’ve got the hang of that after some time, you might consider adding another card to your wallet. With a new card, you can increase your available credit, earn more rewards and maybe even score a nice sign-up bonus. If you already have a good flat-rate card, we suggest a card with bonus categories that match your spending habits — whether that’s travel, groceries, dining out or something else. The intermediate: 3-5 credit cardsMost people fall within this category. At this point, you can probably be rewarded for all of your major spending categories. Ideally, you’d have a good flat-rate card (rewarding at least 2 percent cash back on all purchases) and two to four cards that reward your most frequent types of purchases. The rewards aficionado: 6+ credit cardsAt this point, earning credit card rewards often becomes something like a hobby — a lucrative one, for many. Some people’s credit card portfolios are well into the double digits. Take Luke Thomas, for example, who opened 24 credit cards in eight years to build excellent credit and fund his world travels. But you don’t need two dozen credit cards before you get organized. As soon as card details become difficult to keep straight in your head, it’s smart to create a spreadsheet of annual fees and payment due dates (if auto-pay isn’t an option). You might also note bonus categories, sign-up bonus deadlines and any other perks. After all, many premium credit cards are only worth their annual fees if you actually use the benefits. Does the number of credit cards you have impact your credit score?As with many credit-related questions, it depends. While the number of credit cards one has isn’t a credit score factor, getting a new card is likely to impact your score. How it can hurt
How it can help
When multiple credit cards make senseThere are many situations in which you can benefit from having more than one credit card, and that’s especially true for rewards enthusiasts who are willing to get multiple credit cards from the same issuer. Instances where it can make sense to have multiple credit cards include the following:
All these reasons aside, it’s important to note that multiple credit cards only make sense for people whose finances are organized already, as well as those who pay their credit card balances in full each month. Also, keep in mind that juggling a few credit cards can also mean juggling multiple annual fees. In theory, there’s nothing wrong with that, but you should make sure you are getting enough value in terms of credit card perks and rewards. When having one credit card makes senseIf you find yourself stressed out at the mere thought of carrying more than one credit card, you’re certainly not alone. After all, many consumers prefer the simplicity of having one credit card and one bill to deal with — especially when one card meets a variety of needs and additional cards would just make life more complicated than it needs to be. Here are some situations where you might want just one credit card:
The bottom lineOnly you can decide how many credit cards you actually want to deal with. For that reason, you may need to do some experimenting to find the ideal number and combination for your needs. Start with one credit card and don’t be afraid to branch out, but make sure you’re ready to put on the brakes when you feel you’ve hit your max. At the end of the day, the right number of cards allows you to maximize rewards and perks without overcomplicating your finances. How many credit cards should a person normally have?If your goal is to get or maintain a good credit score, two to three credit card accounts, in addition to other types of credit, are generally recommended. This combination may help you improve your credit mix. Lenders and creditors like to see a wide variety of credit types on your credit report.
How many credit cards are too much?Six or more credit card accounts might be too many for some people, given that the average American has a total of five credit cards. Everyone should have at least one credit card for credit-building purposes, even if they don't use it to make purchases, but the exact number of cards you should have differs by person.
Does having too many credit cards hurt your credit?Key Takeaways. Having too many outstanding credit lines, even if not used, can hurt credit scores by making you look more potentially risky to lenders. You can boost your score in some cases by opening new credit cards if the new credit lines lower your overall utilization ratio.
How many credit cards should I carry with me?Having at least two or three credit cards can be a useful thing in times of crisis. Ideally, these cards should have no annual fee, a relatively high credit limit, and a low interest rate.
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