How many credit cards should I have?

If you’re wondering how many credit cards you should have, there’s no one-size-fits-all answer. Some experts recommend two or three credit cards, as long as you use them responsibly. But your number ultimately depends on your personal situation. 

In general, several well-chosen cards could be helpful if you’re trying to build credit, manage your finances and take advantage of perks and rewards. Before you apply, here are some things to consider.

What you’ll learn:

• Having a credit card can help you build credit if you use it responsibly, like making payments on time every month.

• The average American has around four credit card accounts. But that may not be what works for you.

• Advantages of having multiple credit cards include increased buying power and the ability to maximize different card offerings and benefits.

• Downsides to having multiple credit card accounts include tracking different statements and payment due dates, plus the potential to overspend.

When you use credit responsibly, it could be a good thing to have more than one credit card. Multiple cards can give you more available credit to work with. It can also mean more spending flexibility. And if you manage multiple credit accounts well, lenders may see you as less of a risk and offer their best borrowing options and terms. 

While it can be good to have multiple cards, keep in mind that there are also risks to managing multiple cards.

Having more than one credit card can give you more available credit to work with. It can also mean more spending flexibility. But having more than one card also means keeping track of more than one bill every month. 

You might decide you have too many credit cards if:

• You’re not comfortable with your fees or interest charges.

• You’re having difficulty managing multiple credit card bills and due dates.

• You have a pattern of missed or late payments.

• You’re unable to maximize and keep tabs on your various card benefits and perks.

Depending on how you use them, multiple credit cards can affect your finances in a number of ways. Here are some factors to consider when applying for multiple cards.

Benefits to having multiple credit cards, and using them responsibly, can include:

• Increased buying power: Having more credit available can increase your spending power. This can be especially helpful in a financial emergency.

• More available credit: Adding another credit card account can increase your available credit. If you keep your credit utilization low, it could have a positive effect on your credit scores.

• Maximized benefits across multiple cards: There are many types of credit cards, such as travel rewards cards and cash back cards. Some cards may offer temporary 0% APR intro rates.

• Backup cards: Having more than one credit card gives you options when a card is damaged, lost, stolen or involved in a case of fraud.

Potential disadvantages of having multiple credit cards can include:

• More accounts to manage: Having multiple payment due dates and credit card balances to track might make it more likely for you to miss payments or pay late. And that can hurt your credit scores. 

• Overspending: With more than one credit card, it may be tempting to spend beyond your means. But creating a budget and spending only what you know you can pay off each month can help keep your credit card spending in check. 

• Impact on your credit scores: When you apply for a new account, your credit scores may take a temporary hit. Applying for multiple credit cards in a short period could send the wrong message to lenders.

• Additional fees: Some credit cards charge annual fees. Having multiple cards with these fees could add up. It may help to consider whether the rewards and benefits that come with a card will balance out its annual fee for you.

Want to know more? Here’s additional information about having multiple credit cards:

There’s a lot to think about when deciding how many credit cards you should have. At the end of the day, it’s an individual decision. Before opening a new credit card account, it could help to do some research and consider what’s best for your spending habits and financial situation.

Thinking about applying for a credit card? Compare Capital One credit cards. When you’re ready to apply, pre-approval from Capital One can help you see whether you’re pre-approved for card offers with no impact to your credit.

Whether your idea of a good time is getting out on the town, traveling the world or staying in, Capital One has a rewards card that may fit your lifestyle.

• See if you’re pre-approved for rewards cards, with no harm to your credit. 

• Explore travel and miles rewards credit cards with unlimited miles you can actually use. 

• Earn unlimited 1.5% cash back on every purchase, every day, with a cash rewards credit card.

• Earn unlimited cash back whether you’re going out or staying in, with a dining and entertainment credit card.