How many credit cards should you have? Well, that depends on what you’re optimizing for. Do you want to increase your credit limit, strengthen your credit score, earn max rewards points, or something else entirely?
In this article, we’re going to answer this question and we will also break down the pros and cons of having multiple cards. Of course, we will also answer common questions we receive about obtaining multiple cards from our members.
This article is part of our free series on how to apply for credit cards in the US, including how to get a US credit card with an ITIN number, which you can access here.
Feel free to use the table of contents to jump ahead to the sections most relevant to you.
Table of Contents
- How Many Credit Cards Should You Have?
- Pros and Cons of Having Multiple Cards
- Frequently Asked Questions
- Ready to Open Accounts With Banks in the USA?
How Many Credit Cards Should You Have?
How many credit cards you should have is a personal finance decision that should reflect your unique priorities. That said, credit card utilization, which is impacted by the number of credit cards you have, can negatively impact your credit score.
So, while it may make sense to apply for more credit cards, credit management still needs to play a role in your decision to ensure long-term financial health. Unfortunately, there are a lot of credit card myths floating around, usually cloaked as credit card advice.
That said, depending on where you are in your credit journey, increasing credit limits can help offer benefits, including building credit and increasing the lucrative awards that you can tap into.
Of course, these are just two of the many benefits that managing multiple credit cards and responsible credit card use can offer. Other credit card benefits (including credit card rewards) will be discussed as they relate to having multiple cards below.
But first, if you’re interested in applying for a company credit card or a secured business credit card, you can access our article linked here to learn more.
Pros and Cons of Having Multiple Cards
There are a number of pros and cons to having multiple cards that individuals should consider before applying. However, generally speaking, when managed responsibly, paid on time, and thoughtfully chosen, having multiple cards is a positive for most people.
In terms of the pros, they range from a better credit utilization score to a wider range of benefits. On the other hand, the cons range from the potential for missed rewards to negatively impacting your credit score when applying for too many cards in a short period of time.
Needless to say, the pros and cons below will vary depending on your credit card objectives, whether you’re looking for credit cards with no deposit, and the reason why you are considering multiple cards in the first place. So, it’s important to consider your unique situation and the specific benefits you are trying to unlock before deciding whether multiple cards is right for you or not.
Pros of Having More Than One Credit Card
- Better credit utilization score
- Reporting to different credit bureaus
- Enhanced credit score with responsible usage
- Wider range of benefits and rewards
- Different transfer partners for travel points
- Back up cards in case of emergency
Cons of Having More Than One Credit Card
- Potential for missed rewards and bonuses
- Difficulty managing payments
- Duplicate fee in terms of annual maintenance
- Potential for a negative impact on your credit score
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Frequently Asked Questions
Below are four of the most common questions we receive from people looking into this topic. If you have further questions you would like to ask our team, don’t hesitate to get in touch.
How Many Credit Cards Does the Average Person Have?
The average person in the United States has three to four credit cards, according to a credit study conducted by Experian. That said, this number was most recently updated in 2021, and given that card utilization is at its highest rate in history, this number has likely increased.
How Do Credit Cards Affect Your Credit Scores?
Credit cards affect your credit score in a number of different ways, including during the application process, while being used, and even when terminating a card. Not surprisingly, the impact on credit score can be both negative and positive, resulting in a weakening or a strengthening of the cardholder’s credit score.
Can Having Multiple Credit Cards Hurt Your Credit Score?
Yes, having multiple credit cards can hurt your credit score. In most cases, this happens when an individual applies for multiple cards within a short period of time. That said, the negative impact of applying for cards typically lasts for only a few months, before returning to normal after ongoing responsible use.
Can I Have Multiple Credit Cards as a Business Owner?
Yes, you can have multiple credit cards as a business owner. In fact, as a business owner, you can usually have multiple personal cards and multiple business cards. That said, it is important to consider the pros and cons of having multiple cards, especially when you are having them for both yourself and your entity.
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