There's a lot of debate about how many credit cards you should have. Most people agree you need at least one, but there's some argument over how many cards are too many.
In my book, there's no perfect number for everyone. If you want a one-card wallet, do it. You want more than a dozen cards to cover every single purchase you could ever make? Do that, too.
Personally, I went the latter path, with a collection of cards well into the double-digits. I'll be the first to tell you that having 15+ cards isn't for the faint of heart (or weak of wallet). But it's also not necessarily the credit deathtrap some people might fear. Here's what it's really like.
Excellent credit can be yours
I can tell you from experience that your credit score doesn't have to die just because you have a lot of cards. I have both tons of credit cards and excellent credit.
And I don't want you to think it's despite having a lot of cards. I believe having all those cards has helped my credit score overall. This is due to a few factors:
- Payment history: While I have a lot of cards, I stay on top of my due dates, so I have a lot of positive payment history. Since this is one of the biggest factors in your credit score, this has helped keep my scores high.
- Amounts owed: Even though I have a few cards with low limits (a few store cards, specifically), the sheer number of cards means my total available credit is very high. This keeps my credit utilization ratio low even when I have high spending months.
- Credit mix: Creditors like to see that you can handle multiple types of credit at once. On the surface, it might seem like having a lot of credit cards wouldn't add to this. However, they're not all traditional credit cards; I also have several store cards, as well as some charge cards, which actually adds to my credit diversity. Plus, I'm showing I can responsibly handle multiple credit lines at once.
At the same time, there are some potential credit drawbacks I have to keep in mind:
- Average account age: I have a few cards that are quite old, as I opened them many years ago. But I also open new accounts regularly (usually for the sign-up bonuses), so my average account age is much lower. This is one factor that counts against me.
- New accounts: Each new credit card application comes with a hard credit inquiry. These can hurt your credit score, especially if you have multiple hard inquiries in your reports. I try to space out new card applications to help minimize the impacts.
A big part of keeping my credit in good shape while juggling all these cards is staying on top of the details. Next I'll explain how I keep track of everything.
Smart management is key
One of the biggest questions I get asked about my card collection is how I manage everything. For instance, people often seem surprised that I've never missed a card payment. Others wonder how I keep track of which card offers which benefits. Here's how I handle a few of the most important tasks.
Making on-time payments
Every two weeks, I go through all of my card accounts to make payments, verify transactions, and take care of other housekeeping tasks. This is made easier by the fact that while I have 15+ cards, they aren't all from different issuers, so I have fewer places to log into.
Of course, even I am subject to life's little surprises that can throw me off schedule. So I've set up autopay on all of my cards to make sure at least the minimum payment is made by the due date every month.
Tracking annual fees
Only about half of my cards have no annual fee -- which means the other half have fees, some of them quite high. I have calendar reminders set up for all of my annual fee cards to ensure I'm never blind-sided by a three-digit card fee without the means to pay it off.
Staying on top of perks and rewards
The best way I've found to track each card's perks and purchase rewards is with a spreadsheet. I have a master document with each card, its perks, its rewards, and other pertinent data. This helps remind me what card to use when, and which benefits I have yet to use for the month or year.
That said, there isn't as much to keep track of as you might think in this regard. I only keep a handful of cards in my wallet for everyday purchases. The rest are either set to autopay -- for example, the card I use for utilities stays at home and takes care of things automatically -- or are only used for specific purchases, like my hotel and airline credit cards.
A card for every occasion
Having a ton of credit cards isn't for everyone. But if it's something you want to do, it's absolutely possible to do it while still maintaining your credit -- and your sanity.
FAQs
There is no right number of credit cards — it depends on how many you can manage. Having multiple credit cards helps reduce your utilization rate and provides lenders with more information to better gauge your creditworthiness.
Is having 6 credit cards too much? ›
Owning more than two or three credit cards can become unmanageable for many people. However, your credit needs and financial situation are unique, so there's no hard and fast rule about how many credit cards are too many.
How many credit cards can you have without hurting your credit? ›
Credit scoring formulas don't punish you for having too many credit accounts, but you can have too few. Credit bureaus suggest that five or more accounts — which can be a mix of cards and loans — is a reasonable number to build toward over time.
Is 12 credit cards too many? ›
So, while there is no absolute number that is considered too many, it's best to only apply for and carry the cards that you need and can justify using based on your credit score, ability to pay balances, and rewards aspirations.
Is it bad to have a lot of credit cards with zero balance? ›
However, multiple accounts may be difficult to track, resulting in missed payments that lower your credit score. You must decide what you can manage and what will make you appear most desirable. Having too many cards with a zero balance will not improve your credit score. In fact, it can actually hurt it.
What is the 3 15 rule for credit cards? ›
The Takeaway
The 15/3 credit card payment rule is a strategy that involves making two payments each month to your credit card company. You make one payment 15 days before your statement is due and another payment three days before the due date.
What is the 5 24 rule? ›
The 5/24 rule is an unofficial policy that dictates that Chase won't approve you for its cards if you've opened five or more personal credit card accounts from any issuer in the last 24 months.
Does cancelling a credit card hurt your credit? ›
Closing a credit card, especially one you've had for a long time, may hurt your score later because it means losing your longest-running account and lowering your average age of accounts.
Is a $5,000 credit card good? ›
A $5,000 credit limit is good if you have fair, limited or bad credit, as cards in those categories have low minimum limits. Credit cards with a minimum limit of $5,000+ usually require good credit or better, but there still are options for someone with a lower credit score.
Should I pay off my credit card in full or leave a small balance? ›
It's a good idea to pay off your credit card balance in full whenever you're able. Carrying a monthly credit card balance can cost you in interest and increase your credit utilization rate, which is one factor used to calculate your credit scores.
In general, keep unused credit cards open so you benefit from longer average credit history and lower credit utilization. Consider putting one small regular purchase on the card and paying it off automatically to keep the card active.
Is it bad to have a credit card and not use it? ›
Credit card inactivity will eventually result in your account being closed. A closed account can have a negative impact on your credit score, so consider keeping your cards open and active whenever possible.
Is 18 credit cards too many? ›
You can never have too many cards. More cards you have the less higher your credit is which in turn makes it better for utilization. Low utilization on high credit is good for your credit score.
Is it OK to have more than 10 credit cards? ›
Yes, assuming you use your cards responsibly. If you do, then having additional cards will generate consistent spending information for the credit bureaus each month, increasing your total credit limit and keeping your credit utilization rate low.
What is the 3 12 rule for credit cards? ›
The 3/12 Rule expands on the previously mentioned 2/3/4 Rule by stipulating that a cardmember will not be approved for any new personal or business credit card by BoA if they have opened three or more new credit cards in the past 12 months.
Is it bad to have 18 credit cards? ›
The Bottom Line. There's no magic number for how many credit cards you should have. But taking the time to consider why you have credit cards in the first place, how well you manage money today and what perks and rewards matter to you can help you find the best answer for your situation.
What is a normal amount of credit cards? ›
How many credit cards does the average person have? According to the latest figures from Experian, the average American has 3.84 credit cards with an average credit limit of $30,365. And their credit journey usually begins early, with the average Gen Z consumer having 2.1 credit cards.
Can you be 15 with a credit card? ›
You cannot get your own credit card account until you turn 18 and you're able to demonstrate enough independent income to make monthly bill payments. However, being an authorized user will help you build credit in the meantime, as long as the primary accountholder pay the bills by the due date.
