This is how many credit cards you should have, according to experts (2024)

A credit card is a valuable financial tool when used the right way. It can help provide your budget some breathing room when money is tight, allow you to earn rewards on your spending, and even help you build good credit. But the big question is: how much plastic is too much?

The answer, as you might have suspected, isn’t so clear cut. Really, it’s as many as you can comfortably manage. So what does that mean, exactly? Find out what the experts have to say.

How many credit cards does the average person have?

According to the latest figures from Experian, the average American has 3.84 credit cards with an average credit limit of $30,365. And their credit journey usually begins early, with the average Gen Z consumer having 2.1 credit cards.

Your credit card habits account for a huge portion of your credit score’s makeup, from the number of cards you apply for to your balances, payment history, and more. Being selective about which cards you have and how many is key to maintaining a healthy score.

How many credit cards is too many?

So, how many credit cards should you have? And how many is too many? According to experts, the answer is: It depends.

The number of credit cards you should have ultimately depends on your personal needs and spending habits. “Some consumers use only one card so they can build credit history, but other consumers may want many different cards for personal, business, travel, airline status, et cetera,” says John Cabell, managing director of Payments Intelligence at J.D. Power.

As far as how many is “too many,” you’ll want to limit the number of credit cards you have to how many you can feasibly keep track of and afford to pay off each month. Credit cards are only a valuable asset as long as you can make on-time payments and avoid carrying a balance from month to month. If you aren’t able to do that, you could find yourself crushed by unmanageable debt, interest, and fees.

On the flip side, if you can manage to keep track of your payment due dates and keep your spending under control, you could see a boost in your credit score over time.

How credit cards affect your credit scores

Your credit cards directly impact your credit score in a few different ways. Here’s a look at the different factors that go into the overall makeup of your FICO score—the most widely used credit-scoring model.

  1. Payment history: Issuers like to see that you have a record of making on-time payments on your debts.
  2. Amounts owed: This is the sum of your overall balances. When it comes to credit cards, your credit utilization ratio tells issuers how much debt you have compared to credit available. Most experts suggest spending no more than 30% of your available credit.
  3. Credit history length: Having a long track record of responsibly managing credit shows issuers that you can be trusted with new credit.
  4. Credit mix: A good mix of different credit products tells issuers you can handle new credit responsibly.
  5. New credit: The number of new credit accounts you’ve recently opened.

Each time you apply for a new credit card, the financial institution will pull your credit report to determine whether to approve your application. This is known as a hard inquiry. “Too many cards can hurt your credit score since the ‘hard’ credit check for each card application can lower your score at least temporarily,” says Cabell.

If you’re approved, a new credit card can positively impact your credit mix and credit utilization ratio by introducing a new kind of credit into your portfolio and increasing your available credit. However, it can also hurt your score if it’s one of a series of recent credit applications or if you fail to make any payments on time.

When it makes sense to have more than one card

There are cases when having multiple credit cards can be beneficial. Rewards credit cards, for example, can help you cut costs if you’re using a card that rewards you for purchases you were already planning to make.

“Using a card that offers cash back on dining and restaurant purchases, and a card affiliated with a service station retailer for purchasing fuel can be a smart way to maximize card value,” says Cabell.

Some consumers might also prefer to have at least two credit cards so that they can use one for everyday expenses, and use the other to finance large purchases. Before you sign up for additional credit cards, you should first take a close look at your spending habits to see if you can pinpoint any patterns.

If you’re making frequent trips to the grocery store, filling up your tank daily, or visiting a certain retail store often, you might consider a credit card that will reward that spending and help you save in the long run.

Once you’ve decided which cards make the most sense for you to have, you’ll want to set yourself up to succeed by setting up automatic payments and regularly monitoring your spending and credit score. You can even choose your credit card payment date so that it aligns with the same day that your paycheck hits your bank account.

“The most important thing is to make sure you are paying at least your minimum payment on time,” says Autumn Lax, CFP and Accredited Investment Fiduciary at Drucker Wealth. “From there be mindful of your interest rate, focusing on paying higher interest cards down or off completely.”

When to hold off on getting a new credit card

Managing multiple cards isn’t for everyone. It can tempt you to spend more than you can afford to pay off and drag your credit score way down. Knowing what kind of spender you are and being realistic about your ability to manage multiple cards is key.

You may want to hold off on applying for a new credit card if:

  1. You struggle with debt management: Having access to even more credit could add to your growing debt balance. Know when to say when, and avoid applying for a new card if you’re already struggling to manage the ones you have.
  2. You have too many recent hard inquiries: Each time you apply for a new credit card or other type of financing, a hard inquiry will be recorded on your credit report. Applying for too many lines of credit in a short time can do some serious damage to your credit score and scare lenders away from doing business with you.
  3. You plan to apply for financing soon: A clean credit report and high credit score are key to scoring financing for a new home, car, or business. If you’re planning to apply for a loan soon, consider holding off on any new credit card applications until after you’ve secured the financing you need.

Before you add a new card to your wallet, make sure it will work for and not against your financial goals and budget. “A credit card can allow you to extend your purchasing power by buying things and paying for them when you have the cash,” says Cabell. ”At least as long as you are working within your overall available income.”

This is how many credit cards you should have, according to experts (2024)

FAQs

This is how many credit cards you should have, according to experts? ›

It's generally recommended that you have two to three credit card accounts at a time, in addition to other types of credit. Remember that your total available credit and your debt to credit ratio can impact your credit scores. If you have more than three credit cards, it may be hard to keep track of monthly payments.

How many credit cards do experts say you should have? ›

Credit bureaus suggest that five or more accounts — which can be a mix of cards and loans — is a reasonable number to build toward over time. Having very few accounts can make it hard for scoring models to render a score for you.

What is the perfect number of credit cards to have? ›

There is no right number of credit cards to own, and owning multiple cards gives you access to different rewards programs that various cards offer. Owning five cards, for example, would give you a bigger total line of credit and lower your credit utilization ratio.

Is 12 credit cards too many? ›

So, while there is no absolute number that is considered too many, it's best to only apply for and carry the cards that you need and can justify using based on your credit score, ability to pay balances, and rewards aspirations.

How many cards is good for credit? ›

From a credit reporting and scoring standpoint, you only need one or two credit cards. Make sure to use them responsibly. If you make a purchase, pay it in full each month and keep your balances low. You don't need to have a lot, just a couple are sufficient for building a strong credit history and good credit scores.

Is 10 credit cards too many? ›

There's no definitive answer to this, but 10 credit cards may often be too overwhelming for the average person to maintain. Having two to three credit cards is much more manageable and can go a long way toward keeping your credit utilization low.

How many credit cards should I have with Dave Ramsey? ›

Instead of borrowing more money and going through the stress of paying it back . . . why not just pay with cash (or at least use a debit card)? Trust us, buying stuff you don't need with money you don't have always ends poorly. So, if you really want to know how many credit cards you should have, it's zero.

Is 5 credit cards too many? ›

Are 5 credit cards too many? Five credit cards may be too many for you, but it may not. You might find it easy to manage multiple cards and track everything that comes with them: benefits, due dates, balances, annual fees, etc.

Is it bad to have too many credit cards with zero balance? ›

However, multiple accounts may be difficult to track, resulting in missed payments that lower your credit score. You must decide what you can manage and what will make you appear most desirable. Having too many cards with a zero balance will not improve your credit score. In fact, it can actually hurt it.

Is there a downside to having multiple credit cards? ›

Easy to overspend: The more lines of credit you have open, the more debt you could accrue. Many hard credit checks: Every time you apply for a new card, your credit score will undergo a hard check (or hard inquiry) by the issuer. Numerous hard checks can impact your credit score.

Is it OK to have 15 credit cards? ›

If you pay on time and keep track of your balances, having a lot of cards doesn't mean your credit has to suffer. Smart card management is key when you have 15+ cards. Autopay, calendar reminders, and a good spreadsheet go a long way toward ensuring I stay on top of my credit cards.

Is it OK to have 7 credit cards? ›

Yes, assuming you use your cards responsibly. If you do, then having additional cards will generate consistent spending information for the credit bureaus each month, increasing your total credit limit and keeping your credit utilization rate low.

What are the three top credit cards? ›

Best credit cards of June 2024
  • Best for point value: Chase Sapphire Preferred® Card.
  • Best for dining and entertainment: Capital One SavorOne Cash Rewards Credit Card.
  • Best overall: Wells Fargo Active Cash® Card.
  • Best cash back on everyday spending: Blue Cash Everyday® Card from American Express.

Does cancelling a credit card hurt your credit? ›

Before you close a credit card account, consider the following: Closing a credit card could lower the amount of overall credit you have versus the amount of credit you're using (your debt to credit utilization ratio), which could impact your credit scores.

Is Capital One a good credit card? ›

Capital One credit cards remain popular for good reason: Its offerings run the gamut from cash back to travel rewards to cards aimed at small businesses. A common thread among all Capital One cards is no foreign transaction fees, making a Capital One card a solid traveling companion abroad.

How many credit cards does average person have? ›

How many credit cards does the average person have? According to the latest figures from Experian, the average American has 3.84 credit cards with an average credit limit of $30,365.

Is it good to have 4 5 credit cards? ›

Advantages of Having Multiple Credit Cards

Helps Build Credit Score: Those who have several credit cards and still make all payments on time, will build a very good credit score. This will increase the credit worthiness of the individual and give him or her access to more credit opportunities.

How many credit cards does the average person have? ›

How many credit cards does the average person have? According to the latest figures from Experian, the average American has 3.84 credit cards with an average credit limit of $30,365.

How many credit cards should I have to get an 850? ›

Total accounts: You need 21+ accounts to score "Excellent." If you have 20 cards and low utilization, you're seen as more responsible to the credit agencies.

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