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How Many Credit Cards Is Too Many? Finding Your Perfect Number

Updated: Jun 14

How Many Credit Cards Should You Really Have?

In the dynamic world of personal finance, credit cards are both a convenience and a conundrum. They offer the allure of rewards and the ease of carrying less cash but managing them can be a puzzle. A question frequently posed is, "How many credit cards should one have?" Let’s unpack that in the next five minutes.

It’s Personal

Firstly, it's key to remember that there's no one-size-fits-all answer. Personal finance is personal for a reason — your spending habits, financial goals, credit needs, and capacity to manage accounts should dictate the number of cards you carry.

A Matter of Credit Scores

One aspect to consider is your credit score. Credit bureaus look at a variety of factors, including diversification of accounts, also known as your credit mix, which can be positively affected by having multiple types of credit, including several credit cards. However, this is a double-edged sword. More accounts mean more opportunities to prove you're a responsible borrower, but they also present more opportunities to slip up.

The Balancing Act

Ideally, you want to balance between having enough cards to optimize benefits and manage risks. For instance, having multiple cards can help ensure you're not at the limit on any one card, which can help your credit utilization ratio — a significant factor in your credit score. But more cards could also tempt you to overspend, which leads to higher utilization and consequently, a lower score.

Rewards and Benefits

If you're a savvy spender, the rewards and benefits offered by multiple credit cards can be tempting — cashback, miles, or points anyone? But don't let the lure of rewards blind you. It’s important to weigh the actual benefits against potential fees and the time involved in managing multiple accounts.

Emergency Situations

It's also worthwhile to consider the role of credit cards in emergency situations. Having an extra card can be a safety net, but if all your cards are maxed out, that net evaporates. Thus, having multiple cards can be beneficial if they’re managed well and have available credit when you need it most.

The Magic Number

So, what's the magic number of credit cards to have? A report from Experian in 2020 showed that Americans, on average, had 4 credit cards. But this doesn't mean four is your number. Some financial experts suggest that having one to two cards is sufficient for most people to manage their finances effectively and benefit greatly from rewards without taking on too much risk.


Having the right number of credit cards is about strike a balance. It comes down to having enough to capitalize on the rewards, maintain a low credit utilization ratio, and ensure you’ve got a safety net without overwhelming yourself with financial maintenance and temptation to overspend. Remember, there's no trophy for the person with the most plastic in their wallet. It's about using what’s in there wisely.

Before applying for another card, assess your current financial situation, spending habits, and ability to manage credit. And remember, each new card comes with a new set of responsibilities. Consider your financial lifestyle carefully before deciding to add another piece of plastic to your collection.

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