How Many Credit Cards Should You Have?

The average adult has around 5 credit cards, including store credit cards, but there’s no golden rule for how many credit cards you should have - or how many credit cards is too many. It depends on personal preference as well as your credit standing and organizational skills.

Using more than one credit card can help you save by allowing you to get the best terms for every transaction that you make. No single credit card offers the best rewards in every purchase category, plus the lowest rates and fees. But you can achieve that effect with a collection of cards that each excel in a particular area.

Using multiple credit cards for the wrong reasons, however, can get you into big trouble. Numerous credit card applications in a short period of time can hurt your credit score, and having too many credit cards can lead to overspending, expensive interest charges, missed payments and credit score damage.

How To Handle Different Numbers of Cards

We recommend having at least two open credit card accounts. It’s best for your credit score to keep your oldest account open, and you should be able to get an upgrade for everyday spending after a bit of credit building. But there are lots of ways to get the job done. So we’ll explore the value of 1, 2 and 3+ card scenarios in greater detail below.

If You Have 1 Credit Card

Having a single credit card account is quite common, especially among people who are new to credit or working their way back from financial mistakes. Many people with more established credit opt for a single card as well, having closed their starter account and preferring the simplicity of one everyday spending vehicle. There’s nothing wrong with having one open credit card account, if more would increase the odds of mistakes and overspending. Just bear in mind that you might also be leaving some savings on the table.

If You Have 2 Credit Cards

Having two credit cards allows you to adopt the Island Approach, in its most basic sense. If you don’t have any credit card debt, this might mean using a pair of rewards cards – one offering cash back across all purchases and another with travel rewards or discounts at your favorite retailer, for example. And if you have debt or are planning a big purchase that will take months to pay off, you should use a 0% card for financing and a rewards card for everyday spending.

You will save money on interest by separating balances that you carry from month to month from your everyday spending. You’ll know you’re overspending if finance charges show up on your rewards cards. And you won’t have to try to find one card that does everything well.

If You Have 3+ Open Accounts

Adding a third credit card to your wallet lets you get more aggressive with the Island Approach. You could, for example, get the best rewards card for each of your three biggest monthly expenses (if you plan to pay in full). You could pair a couple of rewards cards with a 0% offer. Or you could have two core cards, which you supplement with the best initial bonus offer available.

If you already have three or more cards, there are valid arguments to be made for both opening a new one and also closing one old one after you do so. Having three or more cards enables you to cobble together the best terms and be opportunistic when it comes to limited time offers. But the more credit cards you have, the more financial management shortcomings will be magnified.

Multiple Credit Cards and Your Credit Score: Key Things to Know

It is possible to build a good credit score with a single credit card account that you use responsibly, but having more than one card could help you improve your credit even faster – if you’re careful. Each credit card you have that’s in good standing will add positive information to your credit reports on a monthly basis. Having multiple credit card accounts can also help you reduce your overall credit utilization, assuming you don’t increase your spending too much.

However, you’ll want to avoid applying for multiple credit cards at the same time or getting another card just to rack up more debt, either of which can lead to credit score damage. Similarly, missing due dates because you can’t keep track of multiple credit cards would be very bad for your credit score.

You can see how adding another credit card account is likely to affect your credit score using WalletHub’s free credit score simulator. You can forecast the impact of another hard inquiry as well as on-time or missed payments on your accounts.

Pros & Cons of Adding Another Credit Card Account

If avoiding credit cards would force you to rely on cash and debit cards for your daily spending, you’ll also be more susceptible to pick-pockets and ATM fees. Plus, you’ll miss out on secondary credit card benefits such as rental car insurance, trip protection and extended product warranties.

There’s obviously another side to the story, too: closing a credit card account. Doing so could save you money if you’re paying an annual fee. But it could also hurt your credit score if the card in question is your oldest account. You can learn more from WalletHub’s guide on the benefits and drawbacks of closing a credit card..

Tips For Choosing The Right Number Of Credit Cards

1. Expand As Your Credit Improves: The single most important factor dictating how many credit cards you should, or even can, have is experience. Do you have established credit or are you just starting out? The more of a novice you are or the worse your credit is, the fewer options you will have and the more you’ll want to concentrate on managing a single account responsibly. Above-average credit, however, will at least give you the opportunity to qualify for multiple accounts worth having open at the same time.If you’re not sure where your credit stands, you can check your credit score for free on WalletHub.
2. Prove You Can Manage One Card Perfectly: Whether or not you’re new to credit, it’s important to first master single card use before expanding your holdings. At a minimum, that means paying your bill on time for 12 consecutive months and largely avoiding debt. Otherwise, adding a new card to the mix will just complicate matters, increasing your costs and potential for credit score damage.
3. Automating Payments Is Essential: Setting up automatic monthly payments from a bank account is the best possible way to reduce the chances of missed payments and surprise debt. And it’s especially helpful when you have several due dates to keep track of. You’ll have the option to pay your entire bill, the required minimum, or a custom amount. Your choice will obviously depend on how much money you have in the bank, but we recommend paying in full whenever possible. Doing so is especially important for cards you don’t use regularly, as you could easily rack up months of finance charges on a small purchase that you simply forget about.
4. Ask For A Higher Spending Limit: If you’re interested in a new credit card because you want to increase your spending power or decrease your credit utilization, consider asking your current card’s issuer to increase your credit line. This could allow you to avoid the hassle and risk that go along with applying for a new credit card. Check out our guide on How To Get A Higher Credit Limit for some helpful tips.
5. Don’t Apply For New Cards Within Six Months Of Loan Applications: Each time you apply for a new credit card, your credit score falls a bit for around six months. This won’t be an issue if you don’t need your credit score for something important in the months after getting a new credit card. But you’ll obviously want the best possible credit score when you’re applying for a mortgage or auto loan, for example. So it’s best to avoid opening a new card in the months before you do.
6. Be Careful About Closing Old Accounts: The length of your credit history accounts for a healthy chunk of your overall credit score. And whether or not your oldest credit account is closed plays a particularly important role in this regard. Closing your oldest account won’t do as much damage if you have another open account that’s nearly as old. But it’s still a step that deserves careful consideration and should probably be avoided if your card does not charge an annual fee. You can learn more from our Guide to Cancelling Credit Cards.

States with the Most Credit Cards

You can see whether applying for a new credit card makes sense in your situation by signing up for a free WalletHub account. We’ll run numerous simulations to determine the best move for both your credit score and wallet more generally, based on your credit history, current cards and financial priorities.

Get Your Personalized Credit Analysis - 100% Free

If your decision about applying for a new credit card depends on whether a good enough offer is available, make sure to check out WalletHub’s picks for 2024’s best credit card deals. You can also try our free CardAdvisor tool to get a personalized recommendation.

Ask the Experts

In order to provide further insight on how many credit cards one should have, we reached out to a panel of experts. Click on the pictures of experts below to read their bios and responses to the following key questions:

1. How many credit card accounts do you think the average person should have?
2. What advice do you have for someone trying to determine the ideal number of credit cards for their situation?
3. How many credit cards is too many?

Ask the Experts

S. Cathy McCrary
DBA, MBA, CPA, Associate Professor of Accounting, Georgia Gwinnett College, School of Business
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Seth A. Hoelscher
Ph.D., Associate Professor, Daisy Portenier Loucks Professor, Department of Finance, Economics & Risk Management, Missouri State University
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Michael Schor
MBA, CMA, Associate Professor of Instruction, Department of Finance, College of Business, Ohio University
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Todd Miller
Financial Coach, Tightwad Todd
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Heather R. Bono
Ph.D., Chair and Associate Professor of Finance, Department of Accounting and Finance, Richards College of Business, University of West Georgia
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Mary B. Sasmaz
Ph.D., CPA, CFP, Assistant Professor, Department of Accountancy, Weatherhead School of Management, Case Western Reserve University
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