How Many Credit Cards Should You Have?

too many credit cards

Availability of credit instantly at your disposal, is probably one of the finest conveniences provided by the modern finance industry. Credit cards can be used in plenty of places for spending money. So the question is, how many credit cards should you have? Well, there is no common rule when it is about the possession of credit cards.

How many credit cards should I have? Roughly speaking, it will depend on a few factors such as financial responsibilities, spending habits, willingness to pay legitimate fees, and desire for rewards. Having multiple credit cards can be risky, but without having a credit card history, there will be a credit score. And, that can impact you while getting loans, or even a job.

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How will you decide the number of credit cards for your needs?

There is a difference between figuring out the number of credit cards you will need and how many will you want. You can get away without having a credit card either, but if you are thinking about building and maintaining a good credit history, possessing at least one card will certainly come in handy.

So, how many credit cards should you have? At least one, which will be used in establishing a good record of managing a credit account in your banking file. With more diversity in this particular file, you will have better credit scores.

When you use one card responsibly, which is spending within your limits and paying regular bills on time, it can help you to fill the credit report with lots of positive information. Each time a bill is paid on due time, the record of payment will go to the major credit bureaus.

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Your payment history will play a crucial role in the credit scores, and missing a single card payment can cast a negative impression on your credit scores. Hence, it will be better if you have a great on-time payment history. In case if you are thinking, how many credit cards should I have?

You can get away with one credit card, but there are few reasons for which you may need more than one card, provided you pay your bills on time and spend responsibly. Having multiple credit cards will influence the credit utilization ratio, which plays an important role in determining your credit scores.

Possessing more than one credit card will also help you to earn valuable rewards. There are many cards that provide rewards when you buy air tickets, whereas some others will provide cash-back or points when you spend at supermarkets, various retailers, and dine at restaurants.

How many credit cards should be treated as too many?

As aforementioned, there are no hard rules regarding the number of credit cards that you should possess. It will vary according to your spending habits, on-time bill payments, having a good value from those cards, and able to maintain all the necessary fees.

When you aren’t able to keep track of your monthly expenses, it is a sign that you may be over-spending on your credit cards. You should consider not using all the cards at the same time, and may leave a few of them at home so that you can’t be tempted to spend unnecessarily.

The best way to determine that you have too many cards is by adding up the annual charges associated with all those cards. It will help you to find out whether the cost of different cards outweighs the special benefits that you derive from using them.

When you should take another card?

If you are thinking about earning rewards, reducing your utilization ratio, or shift the balance to a low-interest card, then you may consider taking a new credit card. If you are planning a vacation trip, a card that provides great travel rewards will be handy. A new credit card may help you to save more on interest payments. Simply transfer the balance from the high-interest payment card to a low-interest payment card.


So, how many credit cards should you have? There are no fixed numbers on that, but you can have one or two cards if you think that you can use them wisely. Still, wondering how many credit cards should I have? Well, juggling multiple cards might be tricky, hence this strategy will work only when you will pay your bills in due time and spend responsibly.