How Many Credit Cards Should I Have?

How many credit cards do you have in your wallet right now? For most of us, the answer is likely more than one. In fact, according to Experian, Americans have an average of 3.7 cards.

Since cards now offer things like travel rewards, cashback, insurance protection, and more, it makes sense to have multiple cards so you can take advantage of all those perks.

But how many is too many? How many credit cards should you have?

Factors that Determine Your Ideal Credit Card Use

Deciding how many credit cards are appropriate for you is complex.

You should consider several factors before applying for another card, including: 

• Credit score: If you have a low credit score, you could have a low credit limit, a high-interest rate, or be denied entirely for a new credit card.

• Income: Issuers will ask about your financial obligations, such as your monthly rent or mortgage payments, to get an idea of your discretionary income and whether you’ll be able to afford to pay your credit card bill. 

• Spending habits: If you have a habit of carrying a balance month to month, limiting the amount of credit cards you have will help you avoid accumulating too much debt.

• Annual fees: Annual fees are only justified if the credit card's rewards and perks outweigh the cost — and if you can afford the fee in your budget. 

• Interest rates: If you habitually carry a balance, having multiple credit cards with high-interest rates is a high-risk scenario for accumulating credit card debt.

• Rewards programs: Are the programs realistic for your normal spending habits? Spending more than you otherwise would just to earn rewards, especially if you can’t pay off the balance, is not a good strategy. Any interest charges will quickly outweigh the rewards you've earned.

• New accounts: When you apply for a new credit account, there's a hard inquiry on your credit report. While creditors like to see you open new accounts over time, opening too many close together is seen as risky financial behavior and could disqualify you.

READ MORE: How To Get a Credit Card

Do Multiple Credit Cards Impact Your Credit Score?

Having multiple cards can help you build a credit history, which can have a positive impact on your credit score. But it's important to be responsible with them! 

Multiple credit cards mean you’ll have a higher available credit limit. This generally makes it easier to keep your credit utilization low, especially if you keep your balances low.

Credit utilization is one of the most significant factors in your credit score. You should keep your credit utilization below 30%, although most people with excellent credit tend to use less than 10% of their available credit.

But if you struggle to keep track of your spending, or if your credit card collection is from impromptu store card applications rather than an intentional strategy, then having access to more available credit increases your risk of overspending.

Juggling multiple balances that you can’t afford to pay off can also increase your chances of late or missed payments, impacting the most significant factor in your credit score: payment history.

Multiple cards can be a double-edged sword, and the impact on your credit comes down to your financial habits. 

How to Manage Multiple Credit Cards

Having multiple cards means you have access to a wider range of rewards.

The key is staying on top of your cards. Make sure you’re getting rewarded for your spending and actually using your card's perks.

If you decide to open multiple credit cards, here's how to best manage them:

1. Get organized

Create a spreadsheet to track the benefits offered by each card to make sure you’re optimizing the various rewards programs.

You can even use a label maker to put a note on each card so you remember which one to use when you’re at the grocery checkout, gas pump, or making a miscellaneous purchase. 

READ MORE: How To Keep Track of Credit Card Rewards

2. Set up autopay

More credit cards mean more due dates to keep track of.

Add your statement due dates to your calendar and set up autopay on all of your accounts. You can generally choose between making an automatic payment for the minimum due, the last statement balance, or the current balance. 

Ideally, you want to automate payments for the last statement balance to avoid carrying a monthly balance (and being charged interest).

But at the very least, set up autopay for the minimum due so that you won’t miss a payment or end up paying late, which could hurt your credit score.

RELATED: Why It’s Hard to Get Out of Debt With Only Minimum Payments

3. Don’t be impulsive

Some stores offer discounts at checkout if you apply for their store credit cards, but don’t do it.

Remember, multiple factors should be considered when applying for a credit card, and though a one-off discount is nice, that shouldn't be the only thing you focus on when making that decision.

RELATED: When Should You Get a Credit Card?

4. Review your credit cards regularly

Make a point of sitting down every few months to evaluate how you’re using your credit cards. 

Consider whether you’re regularly using every card. Look at the rewards you’ve earned on each card in the past few months to see if you’re getting the most value. Evaluate benefits: lounge access, statement credits, or memberships.

Also, look at your overall budget. Have you changed jobs and now have a longer commute, so you're spending more on gas? Are you planning a big vacation next year that you could use travel points for?

Ensure your credit card strategy aligns with your evolving lifestyle and needs.

RELATED: When and How To Upgrade Your Credit Card

Do I Have Too Many Credit Cards?

If you already have multiple credit cards, how many cards are too many?

Because everyone is different, the answer will vary from person to person. Consider the following when deciding how many cards are appropriate for you:

• How is your payment history? If you currently struggle to meet the payment due dates for your cards, that could be a sign that you have issues managing your debt — and that you have too many cards.

• How high is your credit utilization ratio? If you consistently carry high balances and find it difficult to pay down, this could be a sign that you are overspending and that multiple cards may not be best for you.

• How high is your debt-to-income ratio? If a large portion of your income goes towards credit card debt, leaving little to no room for necessary expenses and savings, that could be a sign that you have too many cards.

• Do you have unused credit cards with a fee? If you're paying annual fees for cards you never use, you may have too many. But if the card has no annual fee, feel free to keep it open, even if you don't use it — having a long account history will positively impact your credit score. 

If you review your finances and believe you have too many cards, close the ones you identify as no longer beneficial.

Closing accounts may temporarily drop your credit score, but if you pay bills on time and keep a low balance on your remaining cards, you'll soon rebuild your score and improve your creditworthiness.

FAQs

TL;DR: The Right Number of Credit Cards

There's no magic number for how many credit cards you should have. Your ideal count depends entirely on your habits and financial discipline.

Multiple cards can boost your credit score by lowering your utilization ratio, but they can also lead to overspending if you're not careful.

Start with one or two cards and only add more if you're consistently paying all balances in full and on time.

If you do go multi-card, get organized with a spreadsheet to track benefits, set up autopay to avoid late fees, and review your card strategy every few months to make sure you're actually using the perks you're paying for.