Should You Have More Than One Credit Card? So, you’re trying to decide whether or not you should get that new credit card because it looks so cool and you always wanted to have it. But the question in your mind keeps coming back over and over again, how many credit cards should I have? Should I get that one? What if I get too many? And what does too many even mean? Should you look at how many people have more than one credit card, or at how many people have more than one bank account, or maybe just how many months of bills do they pay per month?
What is your current financial situation?
How many credit cards should you have at once really depends on your current financial situation. If you’re living paycheck to paycheck, it’s not a good idea to get one or more credit cards because of how quickly credit card debt can accumulate.
If you’re working on being more financially secure and saving money, getting a credit card could be a way to build up your credit score while earning rewards along the way.
In any case, as with most things in life, moderation is key when it comes to how many credit cards you should have at once. If you do decide that it makes sense for you to open one or more new accounts, just make sure that you monitor your spending—and only charge what you can afford to pay off each month.
How many credit cards should you have on average?
How many credit cards should you have at once? As a general rule, having more than one is not going to harm your credit score. In fact, some people find it’s easier to manage all their purchases and payments with several cards (assuming they pay off all their credit card bills each month).
But on average, most experts recommend keeping your total accounts open — including credit cards and other loans — under four or five. They also recommend using no more than 30 percent of your available credit on any one card. So if you have four cards with a total limit of $10,000 in credit, for example, keep your spending on any one card at about $3,000 and do that for all four.
Are you seeking rewards from travel or cash back from shopping?
How many credit cards should you have on average? Use sites like these to evaluate your spending habits and identify rewards that suit you best: Experian, NerdWallet. Make sure you pay off your balance each month to avoid unnecessary interest charges.
Take advantage of a points-based program if it fits your spending patterns, but remember to shop around before getting a card with an annual fee; sign-up offers can easily waive them.
It’s important to stick with one or two cards at most so you don’t overburden yourself in order to maximize savings – but make sure that each card does enough for you before adding a third option onto your list.
Do you need a balance transfer credit card with 0% interest rate offers?
If you don’t want to pay credit card interest, it’s a good idea to carry only one or two credit cards. If you have more than that, you might find yourself spending more than you would if you just used one. Does having too many credit cards hurt your credit?
It can! Each time a lender reviews your file, they may see multiple inquiries on your account and consider it a warning sign.
Do you want more than one type of reward (i.e. cash, travel)?
For example, do you want more than one type of rewards (i.e. cash, travel)? Do you want to be able to use your credit card at a certain merchant or in certain countries? To determine how many credit cards you should have, sit down and figure out exactly what benefits matter most to you. If a single card can’t deliver on everything that matters most to you, consider opening up another account with a different rewards structure (or even from a different issuer).
How much are you willing to spend on annual fees?
If you’re trying to decide how many credit cards to have, start by thinking about your lifestyle and how much money you’re willing to spend on annual fees. If it makes sense for you to have more than one card in order to earn rewards and better customer service, then go for it. Otherwise, one or two cards should be sufficient. Remember: Paying off your balance every month is far more important than which perks come with which card. In fact, more isn’t always better when it comes to credit cards – having too many can actually hurt your credit score! Still not sure how many is right for you? Check out our guide to how many credit cards you should have.