How Many Credit Cards Should You Have? (2024)

When used responsibly, credit cards can be a helpful tool. They can help you build your credit score and provide a short-term, interest-free loan as long as you pay back what you've borrowed before your due date. The question is: How many credit cards should you have?

In reality, there's no right answer to this question. According to an Experian consumer credit review, Americans have an average of 3.84 credit cards per person.¹ While that may seem like too many for some, others may consider it not enough. How many credit cards you should have in your wallet is a personal decision that's entirely up to you. To help you decide how many credit cards are right for you, it's important to consider your unique situation.

Factors to Consider Before Applying for Multiple Credit Cards

Instead of applying for new credit cards whenever you receive an offer, consider the following factors:

• • Credit score: Anyone looking to build their credit score may want to consider having more than one credit card. That's because the number of accounts you have, your payment history, your credit utilization ratio and the length of your credit history all help determine your credit score.² Generally speaking, the more responsible you are with your credit, the higher your credit score. That said, when you apply for a new credit card, your credit score may temporarily take a small hit.
• • Financial goals: Credit cards can sometimes help you reach your financial goals. For example, a cash back credit card gives you money back on every purchase. You're getting free rewards as long as you pay your bill in full and on time each month.
• • Debt consolidation: Some credit cards offer a balance transfer and/or low interest rate. These cards can be beneficial because the lower interest rates can help you reduce debt.
• • Rewards: Whether you want cash back or travel rewards, you can get more benefits by having multiple cards. That's because different cards come with additional perks and welcome bonuses.

Pros and Cons of Having Multiple Credit Cards

Benefits of having multiple credit cards

Here are a few highlights of having more than one piece of plastic in your wallet:

• • It can help you build or maintain your credit score. Having multiple credit cards can help you maintain your credit score if you pay your bills in full and on time every month. Plus, if you don't max out the cards, it can actually lower your credit utilization ratio—the amount of credit you're using relative to the total amount of credit you have available—and help bump up your credit score.
• • It boosts your buying power. Many would argue that having more buying power is the main reason to have multiple credit cards. Each credit card has its own limit, but between all of them, you might have access to a good amount of credit.
• • It can be convenient. Having multiple credit cards can be helpful when shopping or traveling. That's because some merchants may not accept every card type (e.g., Visa, Mastercard, American Express). By having more than one kind of card available, you'll always have a backup card.
• • You can earn more rewards. Some people use multiple credit cards to maximize their benefits. Specifically, some credit cards offer cash back on select merchant categories. If you apply for two cards that give you an increased earn rate in different categories, you could give yourself a chance to maximize your rewards. For example, you could have one card that gives you extra cash on grocery and gas purchases, and another card that gives you an increased earn rate on home improvement and drugstore purchases.

Downsides of having multiple credit cards

Consider the following factors if you have multiple credit cards:

• • There's potential for overspending. The obvious risk of having multiple credit cards is that you could get into debt quickly. While having access to credit is excellent, if you're not paying off the entire balance each month, you could spiral into debt. Even if you consistently pay your bills on time, you could still end up spending more. That's because people tend to spend more when using credit compared to cash.³
• • You'll need to manage more accounts. Not only will you need to juggle different due dates, but you'll also need to manage your cash flow. Your credit card statements likely won't end on the same date, so it may feel like you're always making payments.
• • It may decrease your credit score. Besides taking a hit when you apply for a new credit card, you may also see a decrease if you max out all your credit cards. The credit bureaus typically don't want your credit utilization ratio to exceed 30%.⁴

How Having Multiple Credit Cards Can Impact Your Credit Score

Having multiple credit cards can positively and negatively impact your credit score. Generally speaking, if you're using your credit responsibly, your credit score will be in good standing.

Try to always pay your bills on time and avoid maxing out your cards. Your credit and FICO scores can drop significantly if you miss multiple payments. Also, note that your credit score will drop a few points whenever you apply for a new credit card.

How Many Credit Cards Should You Have?

Even though the average American has close to four credit cards, that may not be the right number for you. Consider the following numbers and reasons to have multiple credit cards:

• • One to two credit cards: For most people, one to two cards are a good starting point. Ideally, you have one card as your primary card and the other as a backup. Generally, if you're in school or a recent grad, you don't want to have more than two cards because you need to develop good credit habits first.
• • Three to five credit cards: Three to five cards can make sense if you use them for specific reasons. In most cases, people get more cards for additional benefits. Some cards have higher cash back bonuses, while others provide perks such as lounge access. There are also some store credit cards that give you benefits, which may be worth considering.
• • Six or more credit cards: Having six or more credit cards can be a bit complicated, as you'll need to manage multiple accounts. It might be worthwhile to have this many cards if you're trying to manage your budget a certain way. For example, you might be using one for household expenses, another for gas, one for travel, etc.

Strategies for Managing Multiple Credit Cards

Whether you have two cards or twelve, you will need a strategy to manage everything. Here are some tips to help you keep your accounts in order:

• • Create a budget: Regardless of how many cards you have, you should have an updated budget to keep your finances on track each month. If your spending gets out of control, you may want to cut up some cards.
• • Check your statements weekly: Instead of waiting for your bill to arrive, check your statements weekly. By doing this, you can track your expenses and see if there are any suspicious transactions.
• • Automate your payments: Your credit card providers will allow you to set up automatic payments so you never miss a due date. An automatic payment can be for the entire amount you owe or a set figure.
• • Prioritize credit card debt repayment: If you're carrying a balance, focus on paying off the credit card with the highest interest rate first. This will minimize the total amount of interest you're paying.

The Bottom Line

There's no magic number for how many credit cards you should have. But taking the time to consider why you have credit cards in the first place, how well you manage money today and what perks and rewards matter to you can help you find the best answer for your situation.

Synchrony offers a variety of credit cards that may help you manage your finances and build your credit score. Earn cash back on almost every purchase, and reap the rewards.

Barry Choi is an award-winning personal finance and travel expert. He regularly appears on various shows in Canada and the U.S., where he talks about all things money and travel. His website, Money We Have, attracts thousands of visitors daily, looking for the latest stories on travel and money.

LEARN MORE: Synchrony Mastercards

Sources/references

• CDS
• HIGH YIELD SAVINGS