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Navigating Credit: How Many Credit Cards Are Too Many?

Lauren Le-Hair Updated: October 23, 2023 • 4 min read
too many credit cards

Key Points:

  • Managing your credit cards effectively is an important part of personal finance.

  • Having multiple credit cards can impact your credit score positively and negatively.

  • The more credit cards you have, the harder it may be to keep track of fees, payments, and balances.

Are you standing at the crossroads of deciding whether or not to add another credit card to your wallet? You're not alone. The dilemma is common, given the attractive rewards, cashback offers, and travel points that come with adding new cards. But here's the catch - managing multiple credit cards is no walk in the park. Let's unravel the secret of the "ideal" number of credit cards and learn how juggling more can affect your financial health, for better or for worse.

Having multiple credit cards can improve your credit score if managed effectively.

How Having Multiple Credit Cards Affects Your Credit Score

Are you wondering if more cards are merrier? Here's a breakdown to help you decide:

  • Credit utilization ratio: A credit utilization ratio is the amount of credit you're using divided by the total amount of credit available to you. Having multiple credit cards can benefit your credit score because it increases your total available credit. This means that if you're not increasing your spending, your credit utilization ratio will decrease, which can improve your credit score.
  • Payment history: Ensuring credit payments are made on time is the single most crucial factor in maintaining your credit score. The more credit cards you obtain, the greater your chance of missing a payment. Any missed payments impact your credit score negatively.
  • Credit mix: This refers to the number of different types of credit you have, such as loans, mortgages, and credit cards. The more types of credit, the higher your credit mix. Still, as long as all payments are on time, a diversified credit mix is good for your credit score.

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Pros and Cons of Having Multiple Credit Cards

If you’re wondering, “Should I have more than one credit card?” we’ve summed up the pros and cons to give you a better idea of what having multiple credit cards will mean.


  • Positive impact on credit utilization ratio: To put it simply, more cards mean access to more credit. Presuming you don’t spend up to the limit of the new credit cards, your credit utilization ratio and likely your credit score can improve.
  • Increased credit limit: Access to more credit cards gives you access to more credit. This can be very helpful during situations where emergency funds are required.
  • Access to perks: Different credit cards feature unique perks and rewards. Using multiple credit cards can give you access to various bonuses, such as airline, hotel, and rental car credits.

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  • Increased administration: Keeping tabs on multiple credit cards can be difficult. You’ll need to ensure that you keep up with all payment dates and amounts; otherwise, your credit score will be adversely affected.
  • Opportunities for overspending: Make sure you spend what you can afford and do not accumulate debt you will struggle to repay.
  • High fees and interest rates: Some credit cards come with annual fees, balance transfer fees, cash advance fees, and other charges that can add up quickly.

Missed credit card payments can lower your credit score.

How to Manage Multiple Credit Cards to Get the Maximum Benefits

If you get the right system in place, managing multiple credit cards can be easy and beneficial for your credit score. Here are our essential tips for managing multiple cards:

  • Keep track of your balances and payment dates: Remember that different cards may have different payment due dates, which can get confusing to manage. Mark these dates on your calendar or phone to ensure you don’t miss them. Some issuers might agree to change your due date if you make the request.
  • Set up automated payments: You can set up automatic payments with your bank, ensuring you do not miss any payment dates.
  • Try to pay off all of your cards in full each month: This positively impacts your credit utilization ratio and helps to avoid incurring interest charges.
  • Apply for new cards wisely: Your credit rating takes a slight hit whenever you apply for a new credit card. Therefore, you may wish to apply for a new credit card one at a time to avoid taking multiple hits at once.
  • Manage your rewards and perks well: Ensure that you are aware of any expiration dates on rewards and use perks wherever possible instead of purchases that you make anyway.

Wrapping Up: The Magic Number of Credit Cards

So, how many credit cards should you have? There's no one-size-fits-all answer. It's al about how well you can manage them. If you're financially savvy and organized, multiple credit cards can be your ladder to a stellar credit score and a world of perks. Simply ensure that you make all of your payments on time and space out your credit card applications to ensure that you take advantage of your multiple cards.

Ready for more insights on smart credit card practices? Dive into our selection of related articles or reach out for personalized financial advice. Your optimal credit card portfolio awaits!



Does having multiple credit cards hurt my credit score?

No, not necessarily. Having multiple credit cards can actually improve your credit utilization ratio, which can improve your credit score. Hard inquiries caused by applying for multiple cards at the same time can harm your credit score.

Is it better to close unused credit cards, or should I keep them open?

Depends. Maintaining unused credit cards can improve your credit score by increasing your credit availability and lengthening your credit history. Closing your unused cards might be a better option if they have high annual fees or you're tempted to overspend.

How does having multiple credit cards affect my debt-to-income ratio?

Having multiple credit cards doesn't directly affect your debt-to-income (DTI) ratio; however, the debts you incur on them do. The DTI ratio, which lenders use to assess your ability to manage and repay debt, increase if you carry high balances or make large purchases you can't pay off quickly.

Written by Lauren Le-Hair linkedin-icon

As an experienced content writer, Lauren's passion for the finance sector is only exceeded by her love of writing. With years of experience writing for financial websites, she has honed her expertise and developed a deep understanding of the industry. Lauren specializes in delivering top-quality, specialized content with an expert tone of voice and a unique flair, leveraging her extensive knowledge and expertise. In addition, she holds a First Class Bachelor's degree from Staffordshire University.