How Many Credit Cards Is Too Many?

A look inside an average American’s wallet will show you up to three credit cards most of the time. This leads to questions like, “how many credit cards are too many?”

Unfortunately, there isn’t a one-size-fits-all answer to this question. It all depends on each person’s financial habits, the ability to repay loans, and the reason for getting multiple credit cards.

Is It Good To Have More Than One Credit Card?

Having more than one credit card has its advantages and disadvantages. It all depends on how you manage them.

It Can Help Build Your Credit Score

Multiple credit card can help you build your credit score faster. If you can make all payments on time, it will increase your credit score and your creditworthiness.

It Keeps Your Credit Utilization Score Low

Having one credit card will put a lot of strain on your credit utilization score. Because it’s the only one you have, you may have to use it all the time.

More cards will automatically give you a higher credit limit because each card has its limit. Together, they will give you a higher credit limit than someone with one card.

Increase Your Credit Limit

More Rewards And Benefits

Each credit card company gives its users reward and incentives for using them, and the more cards you get, the more benefits you enjoy. Different card mean different benefits.

It Can Reduce Your Credit Score

Defaulting multiple credit card payments can plummet your credit score drastically. Try not to default on any payments to keep your credit score up.

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