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How Many Credit Cards Is Too Many

How Many Credit Cards Is Too Many

Are you in a dilemma about how many credit cards are too many? Well, you’re not alone. The world of credit cards offers a plethora of choices, from cash back to travel rewards and various perks. It’s easy to be enticed by the glittering offers and find yourself accumulating a wallet full of plastic. But what’s the right number for you?

In this comprehensive guide, we’ll delve deep into the territory of credit cards, exploring the factors that determine your magic number. Whether you’re a minimalist seeking simplicity or a rewards aficionado looking to maximize benefits, we’ve got you covered. So, let’s get started with the most burning question:

How Many Credit Cards is Too Many?

The ideal number of credit cards isn’t set in stone; it varies based on your financial habits, preferences, and goals. To determine your magic number, consider the following factors:

  1. Comfort with Annual Fees: Are you comfortable paying annual fees for the perks and rewards your cards offer? If you’re not reaping the benefits, it might be time to reconsider.
  2. Card Usage: How many cards can you effectively manage? If you find it overwhelming to keep track of multiple cards, simplicity might be your best bet.
  3. Maximizing Perks: Do you want to earn various types of rewards, such as cash back, travel points, or other benefits? Your number of cards should align with your reward goals.

Now, let’s break down the ideal number of cards into categories:

The Minimalist: 1-2 Credit Cards

For those who prefer a straightforward approach, one or two carefully chosen credit cards can suffice. Here’s how to make the most of this approach:

  • Starter Card: If you’re new to credit cards, consider a no-annual-fee flat-rate cash back card. It’s a hassle-free way to earn cash back on every purchase without worrying about bonus categories or annual fees.
  • Gradual Expansion: Once you’re comfortable with one card, you can contemplate adding another. This second card can increase your available credit, boost your rewards, and possibly provide a valuable sign-up bonus. If you already have a solid flat-rate card, explore options with bonus categories that align with your spending habits.
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The Intermediate: 3-5 Credit Cards

Most people fall into this category. With three to five credit cards, you can effectively manage various spending categories. Here’s a strategy to maximize this portfolio:

  • Flat-Rate Card: Ensure you have a reliable flat-rate card that offers at least 2 percent cash back on all purchases.
  • Diverse Rewards: Supplement your portfolio with two to four cards that cater to your most frequent types of spending, such as groceries, dining, or travel.

The Rewards Aficionado: 6+ Credit Cards

For those who view credit card rewards as a rewarding hobby, owning six or more cards can be enticing. However, staying organized is crucial. Here’s how to make the most of a substantial credit card portfolio:

  • Organizational Tools: When the details of your cards become challenging to remember, create a spreadsheet to track annual fees, payment due dates, bonus categories, and other perks. This will ensure you don’t miss out on valuable benefits.
  • Focus on Benefits: Many premium credit cards justify their annual fees with a range of perks, but these perks are only valuable if you fully utilize them. Make sure you’re getting sufficient value from your cards.

How Does the Number of Credit Cards Impact Your Credit Score?

It’s natural to wonder whether having multiple credit cards affects your credit score. Let’s explore the potential impacts:

Negative Impacts:

  1. Hard Inquiries: When you apply for a new credit card, a hard inquiry is added to your credit report, leading to a temporary drop in your credit score. However, this effect typically lasts for about a year.
  2. Frequent Applications: “New credit” accounts for 10 percent of your FICO credit score. Multiple recent credit card applications can lead to a lower score. To maintain your best approval odds and credit score, it’s advisable to wait three to six months between credit card applications.

Positive Impacts:

  1. Credit Utilization: Your credit utilization, or the amount of debt you owe relative to your credit limits, is the second most significant factor affecting your credit score (after payment history). Lower utilization is better, and getting a new credit card can help. If your combined credit limit is $10,000, and you typically spend $1,000 each month, your credit utilization is 10 percent. Adding a card with a $2,000 limit and maintaining the same spending drops your utilization to about 8 percent.
  2. Building Credit: Responsible use of multiple credit cards can reduce your credit utilization ratio, potentially improving your credit score.
  3. Thicker Credit File: Multiple cards provide credit scoring models with more data to assess your creditworthiness. A thin credit file, with only a few accounts, can be perceived as a risk, making it harder to achieve a high credit score.
  4. Credit History Length: The age of your credit accounts influences your score. Having multiple cards can positively impact the length of your credit history.

Making Sense of Multiple Cards

There are several scenarios in which owning multiple credit cards can be advantageous. Let’s explore them:

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Reasons to Have Multiple Credit Cards:

  • Diverse Rewards: Owning multiple cards allows you to accumulate various types of rewards, such as cash back and travel rewards, which may not be available with a single card.
  • Welcome Bonuses: Each card can offer its own welcome bonus, potentially worth hundreds of dollars.
  • Lower Credit Utilization: Having multiple cards increases your total credit line, which can decrease your credit utilization if your spending remains consistent.
  • Varied Perks: Multiple cards can provide an array of perks, like elite status at hotels, airport lounge access, travel credits, and more.
  • Leveraging Rewards Programs: Having multiple cards within a single rewards program allows you to maximize each card’s unique earning rates and bonus categories.
  • Business Owners: Small business owners may benefit from a separate business credit card for their business-related expenses and bills.

However, it’s essential to emphasize that managing multiple credit cards is best suited for individuals with organized finances and those who pay their balances in full each month. Additionally, remember that holding multiple cards may also entail multiple annual fees, so ensure the benefits outweigh the costs.

When One Card Suffices

In contrast, there are situations where having just one credit card is the most sensible choice:

Reasons to Have One Credit Card:

  • 0 Percent Intro APR: If your primary concern is a 0 percent APR offer rather than earning rewards, selecting a single card with the longest introductory offer can be advantageous.
  • Balance Transfer: Consolidating debt through a balance transfer is simplified with only one card, reducing the temptation to accumulate more debt.
  • Cash Back Focus: If you want to focus on earning cash back, selecting a card with the highest cash back rate can maximize your rewards.
  • Avoiding Annual Fees: Opting for a single credit card with no annual fee allows you to sidestep paying for additional perks you may not fully utilize.
  • Simplifying Finances: One credit card equates to one bill and streamlined financial management.

Is 10 credit cards too many?

Having 10 credit cards can be excessive for most individuals. It’s essential to consider whether you can effectively manage them, keep track of payments, and make the most of the perks. While there’s no universal “too many” when it comes to credit cards, 10 might be challenging for many people to handle efficiently.

Is it OK to have 7 credit cards?

Owning 7 credit cards can be acceptable, but it depends on your financial habits and organization. If you can manage these cards effectively, pay off balances on time, and maximize the benefits they offer, then 7 cards might not be a problem. Remember that it’s all about your comfort and ability to handle them.

Is it OK to have 20 credit cards?

Owning 20 credit cards is an exceptionally high number and could be challenging for the majority of consumers to manage. While some individuals, like extreme rewards enthusiasts, might handle such a portfolio, it’s crucial to maintain a high level of organization and make sure the annual fees are justified by the benefits you receive.

Is it OK to have 5 credit cards?

Having 5 credit cards is a reasonable number for many people. It allows you to diversify your rewards and perks without becoming overwhelming. As long as you can manage these cards effectively, pay bills on time, and make the most of the rewards, 5 credit cards can be a suitable choice.

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Is it OK to have 12 credit cards?

Owning 12 credit cards is on the higher side, but it’s not inherently bad. The key is to ensure you can efficiently handle these cards, pay off balances, and fully utilize the perks. If you’re organized and can justify the annual fees with the benefits you receive, then 12 credit cards can be manageable.

Is it bad to have 50 credit cards?

Holding 50 credit cards is an extreme scenario and generally not advisable for the average consumer. Managing such a high number of cards would be highly challenging and could lead to financial difficulties. It’s essential to be cautious and consider the practicality of such an extensive portfolio.

Is it bad to have 15 credit cards?

Owning 15 credit cards is on the higher side, but it’s not necessarily bad if you can effectively manage them. The key is to stay organized, pay bills on time, and ensure that the annual fees are justified by the perks and rewards you receive. What matters most is your ability to handle this number of cards.

Is it good to have 15 credit cards?

Having 15 credit cards can be beneficial if you’re an experienced credit card user and can maximize the perks and rewards. It allows you to diversify your benefits and tailor your cards to different spending categories. However, it’s essential to emphasize that this number may not be suitable for everyone, and it depends on your financial management skills.

How Many Credit Cards Is Too Many FAQs

Q1: Is there a right number of credit cards to own?

A1: There’s no universally correct number of credit cards. It varies based on individual preferences and financial management.

Q2: How does owning multiple credit cards affect your credit score?

A2: While the number of cards itself doesn’t directly impact your credit score, acquiring a new card can lead to a temporary decrease due to hard inquiries. However, it can also positively affect your credit utilization, credit history length, and credit file thickness.

Q3: When should you consider having multiple credit cards?

A3: Having multiple credit cards makes sense when you want to diversify your rewards, access various perks, and manage different types of expenses. It’s particularly beneficial for those who are organized and pay their balances in full.

Q4: When is having just one credit card a wise choice?

A4: Opt for one credit card if you prioritize a 0 percent intro APR, plan to use a balance transfer for debt consolidation, prefer earning cash back, want to avoid annual fees, or seek simplified financial management.


In the quest to determine how many credit cards are too many, the answer ultimately lies in your unique financial situation, goals, and preferences. Whether you opt for a minimalist approach, an intermediate portfolio, or become a rewards aficionado, make sure your credit card choices align with your needs. Keep a watchful eye on annual fees, stay organized, and ensure you’re getting value from your cards.

As you navigate the world of credit cards, remember that the magic number is the one that best serves you, helping you reap the maximum benefits without complicating your financial life. So, choose wisely and enjoy the perks of your ideal credit card portfolio!