How Many Credit Cards Is Too Many? (2024)

FAQs

Is 7 credit cards too many? ›

How many credit cards is too many or too few? 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.

There is no right number of credit cards to own, and owning multiple cards gives you access to different rewards programs that various cards offer. Owning five cards, for example, would give you a bigger total line of credit and lower your credit utilization ratio.

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.

It's generally recommended that you have two to three credit card accounts at a time, in addition to other types of credit. Remember that your total available credit and your debt to credit ratio can impact your credit scores. If you have more than three credit cards, it may be hard to keep track of monthly payments.

While it is not inherently bad to carry multiple cards, cardholders need to know what their own limitations are and what they can handle. It can be difficult to manage payments for multiple credit cards at once.

What is the Chase 5/24 rule? According to the 5/24 rule, you won't be approved for a Chase credit card if you've opened five or more cards from any bank (excluding most business credit cards) in the past 24 months, even if you have an excellent credit score.

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 it bad to have several credit cards? Having many credit cards is not necessarily bad, as long as you manage your spending and payments responsibly. However, if you have a history of overspending or debt accumulation, using many credit cards may not be the best option.

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.

Key takeaways: Closing a credit card can hurt your scores because it lowers your available credit and can lead to a higher credit utilization, meaning the gap between your spending and the amount of credit you can borrow narrows. Canceling a card can also decrease the average age of your accounts.

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.

If you pay on time and keep track of your balances, having a lot of cards doesn't mean your credit has to suffer. Smart card management is key when you have 15+ cards. Autopay, calendar reminders, and a good spreadsheet go a long way toward ensuring I stay on top of my credit cards.

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.

Key Takeaways

Having many open credit cards doesn't hurt your credit score, but opening many new cards may ding your credit slightly by reducing the average age of your accounts.

If you can avoid closing a credit card, or if you don't really need to close a card, you're almost always better off leaving your account open. This is especially true if you're trying to improve your credit score or at least not hurt it, and if you have a rewards balance you haven't yet used.

If you're just starting out, a good credit limit for your first card might be around $1,000. If you have built up a solid credit history, a steady income and a good credit score, your credit limit may increase to $5,000 or $10,000 or more — plenty of credit to ensure you can purchase big ticket items.

According to an Experian consumer credit review, Americans have an average of 3.84 credit cards per person. While that may seem like too many for some, others may consider it not enough. How many credit cards you should have in your wallet is a personal decision that's entirely up to you.

You can own as many credit cards as you want as long as you are eligible for it. If you do not maintain the right credit utilisation rate, your credit score may be reduced. When you apply for a loan in the future, the number of credit cards you own may affect your overall repayment capacity.