How Many Credit Cards Should I have? What is Normal?

How Many Credit Cards is Normal?

There is no magic equation, resulting in how many credit cards that every person must have. Besides, your credit cards influence your credit score depending on how you utilize them. You’ll need to think of your financial requirements as well as behaviors to determine the number of credit cards you must need to have at your disposal.

Three to five credit cards is considered healthy for building good credit. A person should have more than one active credit trade account. More than one credit account demonstrates to creditors that you are capable of managing your money in multiple areas responsibly. People with established credit receive more favorable interest rates when they apply for loans.

Credit Utilization is a Reason People Get More Than One Credit Card

There are a few reasons you might choose to consider having more than one credit card. Having more than one credit can raise your credit score. The secret is to keep a careful watch on your credit utilization ratio. Utilizing means use your credit cards, but don’t use more than 30% of your combined credit lines. Ideally, you should be using less than 9%. Some people open more credit cards so they can have a higher combined credit limit.

 Credit Limit Credit Balance Utilization %
$5,000 $2,500 50%
$30,000 $2,500 8%


You can see why 8% credit utilization will look more favorable to lenders but is it not the same thing? The amount of the debt is the same. Banks see it as one person has more control of their spending limits than another.

I would caution anyone to take this approach as a reason for acquiring more credit cards. This behavior can also lead to 30,000 dollars in credit card debt. Be sure if you are to implement this technique that it will not tempt you to overextend yourself and result in crippling credit card debt.

Make it a habit when possible of paying credit card statements in full each and every month. Paying in full rather than being a revolver will increase your credit score. It is a myth that you build higher scores by carrying balances from month to month. The truth is using your credit card regularly and paying the balance in full each month will increase your credit score. Not using your credit cards will not increase nor decrease your credit score.

How many credit cards with rewards should I have?

Another reason to have more than one credit card is to have various types of reward credit cards in which to earn reward points. Earning credit card rewards can be a good strategy, but limit yourself to only a few.

A cash back credit card should be in everyone’s wallet. There is nothing more basic than a cash back credit card that you can use for anything. Discover card is very popular because they will offer during certain quarters an enhanced reward structure where you can earn higher reward values on certain goods and services.

Travelers should have a travel credit card but do your research. Many Travel credit cards have steep annual fees associated with them. If you do not use the card enough, you will not earn enough points to travel and be left with that annual fee to pay every year. Watch out for blackout days. Some airline credit cards limit your ability to travel. What good is a free plane ticket if you can only travel during off-peak travel times?

how many credit cards

How many credit cards do you have?

Department Store Credit Cards – How many credit cards are too many?

There is one type of reward credit card I would like you to consider very carefully. That is the department store credit card. Often people get roped into applying because they are offered 20% off their purchase “just” for applying. The problem is you might only shop at that store once every three years. Some individuals have a wallet full of virtually useless credit cards. Department store credit cards and their rewards are only useful if you are a frequent shopper of that store.

With department store credit cards how many credit cards is too many? Some individuals have a wallet full of mostly useless credit cards. Department store credit cards and their rewards are only useful if you are a frequent shopper of that store. So one unused department store credit card, in my opinion, is too many.

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