How Many Credit Cards Should You Have?

A credit card is no longer a luxury. With several credit card options curated for each purpose, we have started adopting a lifestyle where credit cards are becoming unavoidable. However, is it sufficient to have one credit card? Can we manage our expenses with a single credit card? Well. Let’s discuss this here. 

Using multiple credit cards has perks like reduced credit utilization ratio, enhanced rewards, and bonuses, allowing you to increase your purchases without hassle. But is that all? You must consider other parameters before acquiring another credit card through credit card apps. So, in this article, we will discuss the pros and cons of having multiple credit card and give you a closure on how many you can have. 

Pros of Having Multiple Credit Cards

Let’s discuss the advantages of having more than one credit card.

Higher Spending Capacity

You can manage your expenses better when you have more than one credit card. The reason is that you will get a higher credit limit when you have more than one card. Due to this reason, you can improve your spending and focus on high-value purchases or manage unforeseen expenses. 

Balance Transfer Facility:

Multiple credit cards open up the balance transfer facility. It consolidates outstanding balances from various cards onto a single card, simplifying debt management. Also, the repayment of the combined amount may occur at potentially lower interest rates and with more convenient terms.

Increases Financial Flexibility:

Using multiple credit cards allows you to tailor your expenditures. Each card provides different benefits. So, by properly analyzing your spending, you can use each card for each purpose, enjoying the unique benefits and rewards each card offers. 

Helps To Meet Emergency Expenses:

Owning multiple credit cards will help you during emergencies. If one card encounters issues or is temporarily unavailable, other cards can cover essential expenses, ensuring individuals are not left without financial resources during critical situations.

Boost Your Credit Score:

When you use multiple cards and distribute the expenses, you maintain a low individual credit utilisation ratio, contributing to a positive credit profile. Therefore, when you use multiple credit cards, you can increase your credit score and take advantage of the right opportunity to have a positive credit history. 

Cons of Having Multiple Credit Cards

Knowing the pros of having multiple credit cards, let us now discuss the risks involved.

Potential Debt Trap:

Combining multiple credit cards increases your overall credit limit, potentially tempting you to indulge in reckless spending. It may lead to accumulating debt for purchases that aren’t essential, putting you at risk of falling into a complicated debt trap.

Credit Score Concerns:

Owning many credit cards means juggling numerous payment obligations. When you have multiple credit cards, you will have a due date for each card. Sometimes, following the repayment dates becomes a huge task, which involves a higher risk of missing payments. It will eventually accumulate more interest and damage your credit score.  

Related Fees:

As you know, each credit card comes with several charges. The more credit cards you have, the greater the cumulative impact of fees, potentially affecting your financial health.

Deciding the Right Number of Credit Cards for You

How many credit cards should I have? If this doubt is pondering in your mind, there isn’t a universal magic number for the ideal amount of credit cards you can have, as it varies based on individual circumstances. 

However, one thing we can suggest for sure is having at least one credit card to benefit from convenience, security, and other advantages. Whether justifying multiple credit cards is necessary depends on personal needs, such as requiring extra credit lines for monthly discretionary expenses or aiming to maximise rewards, like cash back, points, or airline miles, through everyday spending.

Tips to Manage Credit Cards Wisely

Here are a few tips that might help you manage multiple credit cards

Maintain Payment Due Dates:

Keep a list of monthly card and annual fee due dates. Set the automatic payments on your credit card app to avoid missing monthly payments and incurring interest.

Monitor Balances Actively:

You must be aware of your credit card balances and think twice before using them.

Evaluate Closing Old Cards:

Think twice before closing old cards when applying for a new one. Lenders often prefer a long credit history, positively impacting your credit score and history.

Prevent Card Inactivity:

Regularly use all of your credit cards to prevent them from becoming inactive. Dormant cards may lead to account closure and an increased credit utilization ratio, potentially harming your credit score.


It is solely in your hands to decide how many credit cards you will use. Some credit cards feel like a blessing, while some exhaust you. So, analyze your expenses and choose your credit cards wisely. Remember that successfully managing multiple cards demands a heightened financial responsibility to safeguard and maintain your creditworthiness in the long run.

mark harper

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