How many credit cards is ok to have?

Checking Credit Card

Ever wondered if there is a specific number of credit cards you should have? Or at least a minimum number, in order to make them worth the effort? So did we. And, obviously, we did some research and the results weren’t surprising.

While the average number of cards an American owns is around 3.8, the truth is that there’s no magic number you should revolve around. However, you should be aware of one thing: as you grow your collection, the risks will also grow.

Considering this, even though it comes with pros and cons, our recommendation would be to stick to one or two credit cards, with just one in your wallet being the ideal scenario. However, in the end, you are the only one who decides upon the number. In this case, we can recommend a few aspects to think about before applying for more cards!

Think about your spending habits

First thing first, if you’re after maximizing your credit card rewards, it’s absolutely ok to open multiple credit cards and take advantage of all the benefits this involves. Just be careful to not end up with way too many in your wallet!

Can you keep track of all of them?

Secondly, do not forget that owning multiple credit cards also involves keeping track of many transactions and monthly payments!

We all know that missing a payment, even once, can have a negative impact on your credit score or, at least, late fees and interest charges. It’s highly recommended to make good use of a reminder system in such situations if you know that you tend to forget about payments from time to time.

Are you after a credit score boost?

And finally, let’s not forget about the main reason why some people prefer opening multiple credit cards, improving their credit score.

The idea is simple: the more cards you have, the more available credit you have. If you’re relying just on one card for all your spending, it could lead to an increased credit utilization rate and negatively impact your score. But if you add a few more cards to this equation, you are able to reduce the overall credit utilization rate, thus giving your score a nice boost.

So, what’s it going to be? One or more credit cards?

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