Wondering how many credit cards you should IDEALLY have? Credit cardholders have very different card usage patterns. While some consumers manage to make do with just one credit card, others will have more than 5 credit cards. So, how many credit cards should you actually have? Read on to find out!
Credit Card Debt
Whether you have one credit card or several, it’s important to pay off your balances at the end of every month. Carrying a balance from month to month isn’t a good practice, given that most credit card providers charge you a high rate of interest on the unpaid balance. So, if you find it difficult to repay your balance every month, it may be best to stick to just one or two credit cards.
How Many Credit Cards Should You Have?
Each individual’s financial situation is unique. Given this, the number of credit cards you should ideally have will vary. Here’s some guidance on what your credit card count should be around, based on your situation.
- You are just building your credit: If you’ve just started to build your credit, it’s best that you opt for an entry-level card. There is also a good chance that you may not qualify for more than one credit card.
- You are in the process of rebuilding your credit score: In this scenario, it’s best to keep your credit card count low to avoid the risk of accumulating credit card debt.
- You are carrying balances on your credit cards: If you are paying a high rate of interest on the balances you are currently carrying, you may want to consider getting a balance transfer credit card that has an APR of 0%. This will help you consolidate your balances and repay it without paying interest.
- You want to maximize your rewards earning potential: If you don’t carry any balances on your card and are in a comfortable position financially speaking, you may want to get specialized cards that will help you earn rewards in different categories.
While the above-mentioned scenarios can guide you in deciding how many credit cards you should have, you will need to consider your unique situation before applying for a new card. Keep in mind that new credit card applications will cause a minor drop in your credit score, so that’s something you may want to consider as well!
