How Many Credit Cards Should I Have?

Credit cards are wonderful inventions. They make purchasing anything convenient and nearly fraud-proof. They’re portable and online-friendly. Many offer rewards or cash back. When used properly, they help consumers build useful credit histories.

Indeed, a robust argument can be made that just about every wage-earning adult ought to have at least one.

But do they need more than one? And, if so, how many credit cards are too many?

That question is a thorny thicket that requires careful exploring. Because credit cards are wonderful inventions … until they’re not.

How many credit cards you should have is a stubbornly individual question, one that has nothing to do with your friends, neighbors, workmates, or kinfolk. Arriving at the right answer should be based on the condition of your finances, habits, ambitions, credit score, age, and ability to manage debt.

Above all, keep this in mind: How you manage your credit cards is far more important than how many you have.

Understanding the Right Number of Credit Cards for You

Americans carry, on average, 3.9 credit cards, a modest dip from the average of 4.15 held in 2017. According to Experian, one of the Big Three credit-data crunchers, baby boomers average the most (4.6 cards), trailed closely by Generation X (4.4). Generation Z (18–24-year-olds) carry 2.1 credit cards.

More Experian: Roughly 191 million Americans have at least one credit card; half of Americans have at least two cards; and 13% carry at least five cards.

For those of you who landed here seeking the precise number of credit cards specified for you based on carefully refined macro-data — age, job security, income, sex, ethnicity, geography, education, savings, investment preferences, risk tolerance, marriage status, political affiliation, hobbies, sports team preferences, zodiac sign, favorite color — we have bad news: There’s no formula that, with precision, specifies your optimum number of credit cards.

Unlike muumuus, credit cards are not one-size-fits-all. Instead, settling on the number that’s right for you is an intensely personal decision.

Plainly, some of the categories listed above can, and should, play a role. Among these are age, job security, income, and savings. Other factors to consider: How will you use your card(s)? Will you be tempted to overspend? Do you have a history of disciplined budgeting? Are you confident you can manage your balances?

Melanie Musson, a Bozeman, Mont.-based financial consultant with Clearsurance, cites fundamentals: “You need to consider your ability to manage cards,” she says. “If you are highly organized and can ensure bills are paid every month, you’ll be taking full advantage of the rewards of each.”

A cautionary note: In 2023, 47% of credit card holders carried a balance from one month to the next (at punitive interest rates averaging 22%), according to the Federal Reserve. In the fourth quarter of 2024, Americans’ credit card balances topped $1.2 trillion, a record. And more of us are falling behind: 7.18% of credit card debt was delinquent (90 days behind) in the fourth quarter of 2024, up from 6.36% a year earlier, according to the Federal Reserve Bank of New York.

How Does Having Multiple Credit Cards Affect Your Credit Score?

Successfully managing personal finances is, always and forever, a balancing act requiring the persistent application of smart choices. Do it well, and your credit score will thank you.

That’s especially true regarding the number of credit cards you carry. Indeed, having (or longing for) multiple cards may be credit’s ultimate double-edged sword.

Credit scores are calibrated by five factors: Payment history, credit usage (debt-to-credit ratio), age of credit accounts, types of credit and new credit.

Consumers who pay punctually; keep overall balances below 30% of their credit limit; minimize adding new credit accounts; have a mix of credit (mortgage, car loan, credit cards, retail accounts, personal installment loans) and successfully managed accounts will build impressive credit scores, even if they have several credit cards.

By contrast, consumers who keep balances near their max-out levels and occasionally miss due dates will see their scores slide, whether they carry one card or several.

Another sure-fire ding: requests for your credit history and FICO score — known as hard inquiries — when you apply for new credit. Each hard inquiry can temporarily ding your credit score by up to five points, but the impact can be greater if you initiate multiple inquiries.

“Hard inquiries create entry points on your report,” says Phoenix, Ariz., lawyer Oliver Morrisey, whose work in legal services has provided ample insights into the ups and downs of having multiple credit cards. “Whenever you submit a new card application, it results in a minor score reduction. Applying for several cards within a brief period of time may produce substantial negative effects.”

On the upside, once you are approved, your prudent use of new credit cards will help your score bounce back.

Strategically Use Cards for Different Spending Goals

The modern credit landscape is peppered with cards that offer rewards or cash-back opportunities. Some cards allow you to designate an area of spending (gasoline, groceries, travel) for higher cash-back awards (up to a certain level each year).

Some savvy multiple-cardholders maximize cash back by designating one card for groceries, another for gas, another for entertainment, another for travel, and so on. Additionally, these wise multiple-cardholders avoid carrying balances, because even a single month’s interest charges can wipe out a year’s worth of cash-back awards.

“One drawback of using several credit cards arises from the difficulty in proper management,” Morrisey says. “You need to [track] which card functions for which type of purchase because a lack of tracking could lead to either missed payments or uncontrolled spending.”

Indeed, carrying balances on cards that pay in airline miles or hotel points is self-defeating. By the time you’ve paid several months of 21%-plus interest charges, you could have gone to Europe and come home via Tahiti.

Can You Have Too Few Credit Cards?

Stipulated: It is possible to survive today’s consumer economy with a single (well-managed) credit card, especially one with a high credit limit.

However, tight restraints on your number of cards can limit your credit history, make it more likely you will creep over the magic 30% credit usage threshold, and cause you to miss cash-back and travel rewards opportunities.

“Having less than a sufficient number of credit cards hinders your credit score development because your available credit remains restricted,” Morrisey said. “Higher credit utilization from [a couple of] credit cards may damage your credit score. Having limited credit cards will prevent you from creating a solid credit history across various credit types and credit accounts.”

Additionally, if your one card goes missing, or is compromised, you’ll be limited to cash or debit card transactions until your new card arrives. And, as noted earlier, credit cards pack much tougher fraud protection than debit cards.

For those just beginning their credit journeys, however, keeping a tight rein on your number of cards can be advisable, even beneficial.

The Risks of Having Too Many Credit Cards

Some consumers can wrangle a fairly large array of credit cards without any problems. Whether that description will apply to you depends on your relationship with personal finances. Be honest: How do you and money get along? Are your habits and preferences suited for a multi-card life?

Risks associated with having too many credit cards include overspending; carrying balances with high-interest charges and stinging fees if you miss payments; and downgrades to your FICO score if your credit utilization surges.

With few exceptions (more on that in a moment), consumers who live paycheck-to-paycheck are unlikely to see their financial health improve by adding credit cards. Instead, they risk overextending themselves even further.

How to Manage Multiple Credit Cards Effectively

If you have, or contemplate having, multiple credit cards, consider a regimen of management strategies. Besides benefiting from convenience and rewards or cash back, you can improve your financial life by using cards to track spending, setting up payment reminders, scheduling automatic payments, and striving to keep your credit utilization low so your FICO score stays high.

Budgeting and Tracking Expenses

The key to personal finance happiness is a reliable, realistic spending vs. income plan — or what is commonly known as creating a budget and sticking to it. Remarkably, having multiple credit cards can facilitate budgeting success.

As discussed earlier, you might want to assign different cards to specific spending categories: groceries, entertainment (including streaming services), mobile phones and internet, gasoline (or charging station fees) and repairs/maintenance, utilities (if they don’t charge convenience fees), insurance premiums (ditto), travel, clothing, medical bills and prescriptions.

This is not an endorsement of holding a dozen or more credit card accounts. Instead, if you’re an American with the average four cards, give or take a couple, group spending categories in ways that make sense to you.

Use your budget to allocate spending limits for each card and regularly compare your statements to your budget to avoid overspending.

Enroll in Autopay for On-Time Payments

By enrolling your cards in auto-payments, you ensure payment punctuality and avoid punishing late fees as well as dings to your credit score.

While your autopay hums along in the background, you are free to make additional payments if your balance begins to grow.

Choose Different Payment Due Dates

Some experts advise establishing a single due date for all your credit cards as a way to avoid confusion.

“If you have all your credit cards due around the same time, you can set aside one evening a month to pay them all,” Musson says. “That’s easier for a lot of people than trying to remember to pay their bills every few days.”

This assumes you are opposed to adopting an autopay system, but also, and especially, that your monthly cash flow can weather your payments falling on the same date each month.

If you are among the roughly 50% of Americans who described themselves as living paycheck-to-paycheck (Bank of America Institute, October 2024), spreading out your payment due dates might be the better plan. By spreading out your due dates, you’re less likely to feel squeezed or run short. And if you’ve wisely adopted an autopay scheme, you won’t forget when bills are due.

Monitor Your Credit Report

As the number of credit cards under your responsibility grows, so, too, does the urgency of tracking your FICO score and credit report.

The Big Three credit reporting agencies (Experian, TransUnion, Equifax) are far from infallible. In a 2024 study conducted by consumer groups Consumer Reports and WorkMoney, 27% of participants found potentially damaging errors in their credit reports.

Failures to effect reforms in their reporting, as well as ignoring documents and evidence provided by consumers, resulted in a $15 million fine against Equifax and legal action against Experian, under the Fair Credit Reporting Act, in January 2025.

Regularly inspecting your credit report, particularly with an eye to fresh hard inquiries and new credit card applications, will help keep your score from plummeting.

When Should You Close a Credit Card?

Occasionally, you may be tempted to close a credit card account. Pause on that. Creditors look kindly at a long, stable credit history, so if you’re considering shutting down an account you’ve had for years but, for whatever reason, you no longer need or use, you may be better off simply burying it in your sock drawer.

Think twice, too, about closing a card that has a fairly high credit limit, even if — especially if — you’ve paid it off. Lop $5,000 from your available credit and you could harm your credit utilization ratio.

Sometimes, however, quitting an old, old paid-off card can make sense. Maybe it packs an onerous annual fee. Maybe you’re unhappy with its customer service. Maybe you’re worried about temptation, or the challenge of having too many credit cards. If you’re satisfied the benefits of closing the account outweigh the drawbacks, do what must be done. Just make sure you continue to manage your other credit accounts prudently.

Making the Right Credit Card Decisions

The decision to carry multiple credit cards must not be taken lightly. Inept management of a single credit card will damage your FICO standing and credit history; mismanaging multiple cards by overspending and accumulating high-interest debt can lead to disaster.

“If you can’t handle one credit card by keeping your spending in check and paying your bill on time, you could get into even more trouble with several credit cards,” Musson says. “It’s best to establish good habits and then add to your collection when it makes sense for the benefits, not because you need to spend more money.”

On the other hand, there are rewards to be reaped far beyond travel perks or cash back from a well-commanded portfolio of credit cards:

• An enviable FICO score and credit history, which can be leveraged for the best deals on mortgages, car loans or leases and personal loans.
• Ready credit if you crash into a financial emergency. Better still, if you need some time to pay off that emergency, you’ll easily qualify for a no-fee balance-transfer card with zero-interest payments for up to 21 months (among the best reasons to add a card).
• A sense of pride and confidence when a prospective employer asks to pull a credit report before offering you a job.

For consumers already over their heads in a multi-credit-card hole, the moment to stop digging is now. Consider free credit counseling with a nonprofit agency such as InCharge, where certified experts in financial coaching and debt management can provide the guidance that helps get you free from debt.