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Ekkachai Tisomboon / EyeEm / Getty Images September 28, 2022 Holly Johnson writes expert content on personal finance, credit cards, loyalty and insurance topics. In addition to writing for Bankrate and CreditCards.com, Johnson does ongoing work for clients that include CNN, Forbes Advisor, LendingTree, Time Magazine and more. Mariah Ackary is a personal finance editor who joined the Bankrate team in 2019, excited by the opportunity to help people make good financial decisions. Send your questions to Bankrate logo The Bankrate promise
At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here's an explanation for how we make money. The content on this page is accurate as of the posting date; however, some of the offers mentioned may have expired. Terms apply to the offers listed on this page. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by any card issuer. Bankrate logo The Bankrate promise
At Bankrate, we have a mission to demystify the credit cards industry — regardless or where you are in your journey — and make it one you can navigate with confidence. Our team is full of a diverse range of experts from credit card pros to data analysts and, most importantly, people who shop for credit cards just like you. With this combination of expertise and perspectives, we keep close tabs on the credit card industry year-round to: Meet you wherever you are in your credit card journey to guide your information search and help you understand your options. Consistently provide up-to-date, reliable market information so you're well-equipped to make confident decisions. Reduce industry jargon so you get the clearest form of information possible, so you can make the right decision for you. At Bankrate, we focus on the points consumers care about most: rewards, welcome offers and bonuses, APR, and overall customer experience. Any issuers discussed on our site are vetted based on the value they provide to consumers at each of these levels. At each step of the way, we fact-check ourselves to prioritize accuracy so we can continue to be here for your every next. Bankrate logo Editorial integrity
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You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. There is no perfect number of credit cards to have. Once you begin exploring credit card offers, you’ll quickly notice how wide and varied the are. From travel rewards to cash back and 0 percent APR offers on purchases, it may feel difficult to narrow your choices. In some cases, carrying several credit cards makes a lot of sense. In others, you’re probably better off with a single credit card that meets all your needs. Here’s what you need to know about having multiple credit cards, plus tips for how you can most effectively pair them to maximize your rewards. Is there such a thing as too many credit cards or too few
There is no universal number of credit cards that is “too many.” Your won’t tank once you hit a certain number. In reality, the point of “too many” credit cards is when you’re losing money on annual fees or having trouble keeping up with bills — and that varies from person to person. If you are “Type A” and incredibly organized, you may be able to have 10 or more credit cards and keep track of their benefits, fees and payments without any problem. If you travel all the time and maximize like it’s your part-time job, then having an array of credit cards with different perks could even be incredibly lucrative. Then again, it’s easy to become overwhelmed with different credit card earning rates, rewards programs, fees and payment due dates. You may realize you’ve reached your limit when you begin getting your cards and payments confused, or can no longer keep track of the perks each one offers. On the flip side, having a can make it difficult to render what kind of borrower you are. Lenders typically view this as a risk, and it can be harder to obtain a high credit score when you have four accounts or fewer. Plus, your credit behavior can have a bigger effect on your score when you only have a few accounts. Think of it this way: It is much easier to reach your overall credit limit with a few cards, and this can have a negative impact on your credit score. How many credit cards should you have
Your magic number of credit cards is a conclusion you’ll have to reach on your own. For reference, the . Where you fall around that baseline should depend on the following factors: How comfortable you are paying credit card annual fees (and if you’re getting significant value in return) The number of cards you can reasonably use for purchases on a regular basis The perks you can get with each one (without paying for redundant benefits) The type of rewards you want to earn and whether you want to earn more than one type of rewards currency The minimalist 1-2 credit cards
For those who like to keep it simple, one or two credit cards should be a good fit. If you only have one credit card or are choosing a starter card, we recommend choosing a no-annual-fee . You’ll earn a little cash back on every purchase and won’t need to keep track of bonus categories or annual fees. If you feel like you’ve got the hang of that after some time, you might consider adding another card to your wallet. With a new card, you can increase your available credit, earn more rewards and maybe even score a nice sign-up bonus. If you already have a good flat-rate card, we suggest a that match your spending habits — whether that’s travel, groceries, dining out or something else. The intermediate 3-5 credit cards
Most people fall within this category. At this point, you can probably be rewarded for all of your major spending categories. Ideally, you’d have a good flat-rate card (rewarding at least on all purchases) and two to four cards that reward your most frequent types of purchases. The rewards aficionado 6 credit cards
At this point, earning credit card rewards often becomes something like a hobby — a lucrative one, for many. Some people’s credit card portfolios are well into the double digits. Take Luke Thomas, for example, who opened in eight years to build excellent credit and fund his world travels. But you don’t need two dozen credit cards before you get organized. As soon as card details become difficult to keep straight in your head, it’s smart to create a spreadsheet of annual fees and payment due dates (if isn’t an option). You might also note bonus categories, sign-up bonus deadlines and any other perks. After all, many are only worth their annual fees if you actually use the benefits. Does the number of credit cards you have impact your credit score
As with many credit-related questions, it depends. While the number of credit cards one has isn’t a credit score factor, getting a new card is likely to impact your score. How it can hurt
A hard inquiry. When you apply for a credit card and a is placed on your credit report, you may see a temporary drop in your credit score. However, that should last for only a few months. Too many applications in a short time. “” makes up 10 percent of your FICO credit score, which means lots of young accounts and recent inquiries will decrease your score. For the best approval odds and credit score, you should . How it can help
Credit utilization. The amount of debt you owe in relation to your credit limits is known as , and it’s the second most important factor in your credit score (behind payment history). Lower is better for this number, and opening a new credit card can help. Here’s why: If the combined credit limit of all your credit cards is $10,000 and you typically spend $1,000 on credit cards each month, your credit utilization is 10 percent (1,000 / 10,000 = 10). If you get a new card with a $2,000 limit and continue spending the same amount, your ratio goes down to about 8 percent (1,000 / 12,000 = 8.3). When multiple credit cards make sense
There are many situations in which you can benefit from having more than one credit card, and that’s especially true for rewards enthusiasts who are willing to get multiple credit cards from the same issuer. Instances where it can make sense to have multiple credit cards include the following: Reasons to have multiple credit cards Advantages You want to earn different types of rewards. Having multiple credit cards lets you rack up different types of rewards (cash back, travel rewards, etc.) that you can’t always earn with just one card. You love credit card sign-up bonuses. Multiple cards yield multiple welcome offers, which can be worth hundreds of dollars each. You want to lower your credit utilization. Having multiple credit cards increases your overall credit line, which can lower your credit utilization rate if you keep your spending consistent. You want a diverse set of perks. Having several credit cards can give you varied perks like automatic elite status at hotels, airport lounge access, Global Entry or TSA PreCheck credits, annual travel credits and more. You want to pair multiple cards within a single rewards program. Getting multiple cards that earn the same type of rewards can help you leverage each card’s unique earning rate and . You’re a business owner. Small business owners should have a separate for all their business-related spending and bills. All these reasons aside, it’s important to note that multiple credit cards only make sense for people whose finances are organized already, as well as those who pay their credit card balances in full each month. Also, keep in mind that juggling a few credit cards can also mean juggling multiple annual fees. In theory, there’s nothing wrong with that, but you should make sure you are getting enough value in terms of credit card perks and rewards. When having one credit card makes sense
If you find yourself stressed out at the mere thought of carrying more than one credit card, you’re certainly not alone. After all, many consumers prefer the simplicity of having one credit card and one bill to deal with — especially when one card meets a variety of needs and additional cards would just make life more complicated than it needs to be. Here are some situations where you might want just one credit card: Reasons to have one credit card Advantages You want 0 percent APR on purchases for a limited time. If you are more interested in a offer rather than earning rewards, picking one card with the longest introductory offer you can find makes a lot of sense. You plan to use a balance transfer credit card to consolidate debt. Paying off debt with a is a lot easier when you don’t have multiple credit cards tempting you to spend. You only want to earn cash back. If you want to focus on only, picking a card with the highest earning rate can yield the most in rewards. You are averse to annual fees. Having one credit card with no annual fee lets you avoid paying for the privilege of having a more perk-laden credit card. You want to keep your finances simple. One credit card means one credit card bill and simpler finance management. The bottom line
Only you can decide how many credit cards you actually want to deal with. For that reason, you may need to do some experimenting to find the ideal number and combination for your needs. Start with one credit card and don’t be afraid to branch out, but make sure you’re ready to put on the brakes when you feel you’ve hit your max. At the end of the day, the right number of cards allows you to without overcomplicating your finances. SHARE: Holly Johnson writes expert content on personal finance, credit cards, loyalty and insurance topics. In addition to writing for Bankrate and CreditCards.com, Johnson does ongoing work for clients that include CNN, Forbes Advisor, LendingTree, Time Magazine and more. Mariah Ackary is a personal finance editor who joined the Bankrate team in 2019, excited by the opportunity to help people make good financial decisions. Send your questions to Related Articles