How Many Credit Cards Should You Have?

“How many credit cards should you have?”

It’s a question that doesn’t really have a definitive answer, unfortunately. It depends entirely on the person, their history, and their overall credit card plan.

For instance, a person with low credit and high debt, the fewer cards the better. But for someone building on their credit history in a smart and productive way, there really is no limit.

In the U.S. alone, there are 1,123 MILLION credit cards in circulation. 

Credit cards are a popular method for saving, earning extra money and managing finances. But how many credit cards is too many, and how can you know?

The grey area of credit cards is murky and elusive, but if you’re on the road to successful money management and financial security, we do have some helpful tips to help you along the way.

Credit Card Tips: How Many Is Too Many?

The short answer? As many as you can afford to pay off. The long answer? Complicated.

To better understand how many credit cards is too many (for you) it’s important that you understand your credit score and the factors that affect your credit.

For instance, your current debt balance, your overall credit availability, your payment history and the number of credit lines all have specific implications. Depending on how often you use your credit card, and how often you pay down your balance, adding another card could help or it could hurt. 

Before you make the decision to apply for an additional credit card, keep these things in mind:

  • Having multiple credit lines open can boost your credit score, but only if you have low balances
  • Having a lot of high-balance credit cards will likely make it difficult for your new application to be approved
  • If you’re already having a hard time managing credit card debt, another credit card will likely add on to that stress, not help.

But if you do have good credit and a productive credit card strategy, adding another card comes with a host of benefits.

Adding a new line of credit to your name can boost your credit score. In addition, most new credit cards are interest-free for a few months, meaning you can make big purchases without worrying about added costs if you pay them off before the interest-free period ends.

Additionally, many credit cards offer rewards like miles and cashback, meaning you could actually make a little bit of money and save by adding a new credit card to your financial arsenal.

As a basic rule, most financial advisors would recommend having at least one credit card to your name. But depending on your spending habits, your credit history and your plan, adding a few more can help you down the line.

That being said, you always need a plan. To ensure you’re getting the most out of these credit cards, you need to understand how to use them the right way — and how to pay them off successfully.

Here are some tips to help you get the most out of your credit cards:

  • Pay them off as soon as possible
  • Try not to use your entire credit line
  • Take advantage of the no-interest period
  • Understand your credit card rewards
  • Don’t close your credit card too soon.

With this in mind, you’ll be well on your way to making successful credit decisions. Because no hard or fast rule applies to everyone. It’s all about taking steps to successfully manage your money. And once you do, you’ll notice fewer financial obstacles standing in your way.

Are you ready to find your perfect credit card? Your Card Search can help connect you with the credit card that’s right for you!