How Many Credit Cards Is Too Many? The Ideal Number Is…

how many credit cards should one have

How many credit cards is too much? Many consumers are willing to find the right answer to this question. 

In fact, there is no “right” answer on what the difference is between a multiple credit card holder and a single cardholder. It all depends on your current financial situation, your monetary needs, level of responsibility, as well as finance-related goals for the future.

Those who have already experienced issues with repaying the debt may suggest that having several credit cards are too many, while those who have extra financial needs might require another card straight away. 

There are benefits and drawbacks to having too many credit cards. Keep on reading to find what factors affect this decision and how many cards should a person have to avoid issues.

How Many Credit Cards Can You Have?

Let’s dive right in and discuss if there is a one-size-fits-all answer to the question if it is bad to have multiple cards. 

It is necessary to admit that there are 377 million open credit card accounts in the USA in 2020, mentions the American Bankers Association

There are advantages and drawbacks to having a lot of cards. One thing is true – it can either boost or lower your credit rating depending on how you manage the debt.

Speaking of high score holders, people with a credit rating of over 780 own approximately six or seven cards. This includes both closed and open accounts. 

Is it good to have multiple cards if you want to have a great credit rating?

Ethan Dornhelm, vice president of FICO Scores mentions that there is no single correct answer. The credit rating is an individual score that defines if you can qualify for a lending solution, or determines the interest rate for a certain lending solution.

“Just the number of credit cards itself isn’t as important as the ability of consumers to keep track of their finances and manage all of their accounts,” mentions Dornhelm.

Can you have too many cards?  In case you keep your balances low and always repay the bills on time and in full, you won’t have any problems with having several cards at once. And such activities are more essential when defining your FICO score and ability to qualify for better lending solutions.

Is It Bad to Open Multiple Credit Cards?

Financial coaches estimate that high credit holders have on average three cards. If we add up the number of closed cards, the total number will be around six. 

As you can see, there is nothing wrong with having several cards at once provided that you utilize them responsibly. The number depends on the results you want to achieve and the rewards you want to obtain. 

Consider the following things before you decide how many cards you can have before it hurts your credit.

Numbers Matter

If having several cards at once makes you less organized and you forget to pay the balance in full on a monthly basis, your credit rating may lower significantly.  

The number of cards you should have for good credit depends not only on the actual number but also on the level of your responsibility and the amount of available credit you actually utilize. In case you use less credit, it can assist you in improving the score.

How many credit cards does the average American have? About three open cards as well as three closed ones.

Bear in mind these things before you decide how many credit cards you should have open.

Should I have multiple credit cards?

All in all, the number of accounts you have depends on your own self-organization skills as well as on the ability to manage your finances and handle several cards at once. 

If your aim is to boost the credit profile and improve your rating, then it makes sense to open a new account. The following useful habits can help you improve the credit history as well:

How many cards should I have for good credit? Hopefully, now you can answer this question and follow the above-mentioned tips to find the best solution in your situation tailored to your unique financial needs.

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