How many credit cards should I have? Pros and cons of having more cards


How many credit cards should I have? What is an optimal number of accounts for me to keep? Math and accounting skills don’t always help to find the answer to how many credit cards should I have. I know a lot of people who boost their borrowing score with only a single credit card, while some people having a full pocket of borrowing cards drown in debts, and fail to implement payments on schedule.

How many credit cards should I have?

The primary issue users need to understand when they are asking ‘how many credit cards should I have’ is the way any borrowing score is reckoned and their next task is to assess what credit options can really bring benefits to them. 

Advantages of holding multiple cards

Forbes reveals that on the average, credit card debt constitutes approximately 26% of real household income. This equals approximately $1276 per month, which exceeds an optimal level of credit utilization (the level which doesn’t drop borrowing score) on 12,5%. If your perennial loan liabilities exceed $1000, you’d better consider having one or more extra credit card. In fact, it stays not really arduous. You can easily find and compare different options on sites like observing their benefits and rewards. There is a number of benefits from holding more than one borrowing account:

  • You easily manage your financial flows: Pay for groceries with one card, pay for gym and trips with another, and thus you will monitor your expenses by simply looking on your banking statements;
  • You gain more rewards and cash backs: Any recent product is a wellspring of supplementary advantages in the format of extra miles for airlines, extra nights in a hotel network or refunds for your monthly expenses;

The general problem is that not many people can easily monitor two things simultaneously. When you have a single solution, you are able to have a look at its standing and you are already familiar with the amount on your deposits and perennial expenses. People don’t like calculating and when they see something in the shop, they don’t like to recall what card to use for that thing. The more accounts you keep, the higher is the risk that you will lose control over the financial flows and plunge your borrowing score instead of enhancing it. Recall that every additional product owned becomes not a plus, it is a burden, which immediately reduces your FICO (acquiring three extra cards will occupy at least 6 months to bring back your borrowing score to the level before acquisition).


In principle, nothing speaks against having a large number of different free credit cards in your wallet, but if you overdo it, you have to reckon with two problems. In principle, you should therefore cancel a free credit card that you really no longer need instead of keeping it “forever” in your wallet.

Getting a free credit card has rarely been as easy as it is today. The selection of different cards on the market is significant, the terms of most cards are more than impressive. Therefore, in principle, there is nothing to be said against indulging in the trend and getting another free credit card. The attractive conditions, the nice new customer bonuses, the low fees – there is simply so much to be said for a free credit card. In contrast to premium credit cards, you don’t have to pay an annual fee and you can easily have several credit cards in your wallet. But isn’t there a catch?

The credit score is potentially a problem, because the credit agency remembers every credit card that you apply for. Basically nothing speaks against having multiple credit cards. The score, however, goes down if you apply for too many credit cards. Up to a number of five credit cards there shouldn’t be a serious problem, but as soon as there are more, you should definitely cancel one or the other card. Basically, the rule applies: Better a free credit card with a very high credit line – this is even positive for the creditworthiness – than several credit cards with a lower credit limit. Canceling one credit card very often and reapplying for another can also have negative consequences.

When it comes to security, too many cards can become a serious problem. While the risk of falling victim to fraud is not fundamentally greater just because one has multiple credit cards, holders of multiple credit cards tend to be too careful. This is hardly surprising, because if you have five or more credit cards, you usually don’t keep them in your wallet all the time. Instead, the cards are lying around somewhere and are often forgotten. In the event of a break-in or theft, the free credit card is suddenly gone – only nobody notices. By the time a blockage is initiated, the damage has often already happened. Even if an insurance company or the credit card bank usually steps in here: You can save yourself this effort by using free credit cards.

Anyone who adheres to the principle of repeatedly canceling a credit card when it is no longer needed can always apply for new cards. If you do this wisely, you will always benefit from attractive new customer campaigns. You can earn several hundred dollars a year if you deal a little with the world of finance. You can’t lose anything as a result – and a little extra income from applying for free credit cards has never harmed anyone. And even if a card is just lying around, you can still be happy that it does not cost an annual fee.

How many credit cards should I have? 3 steps to a decision

Having more cards has its own advantages and benefits. If you desire to build your decision without the influence of advertising and suggestions of your relatives, you’d better follow three simple steps. At first, get your banking statement and look at expenditure categories, on which you’ve spent most of your funds. After that, calculate what sum of borrowed money you use monthly. If the calculated amount is higher than $1000, get an extra card, giving you rewards for expenses, which are predominant in your schedule (certainly, if your borrowing score allows to do so). Accurate assessment of your financial situation on a regular basis will help you manage your resources more efficiently.

About Business Woman Media

Our women don’t want to settle for anything but the best. They understand that success is a journey involving personal growth, savvy optimism and the tenacity to be the best. We believe in pragmatism, having fun, hard-work and sharing inspiration. LinkedIn

Recommended for you

error: Content is protected !!