Key takeaways

The right number of credit cards is different for everyone, although you may find there’s a specific number that works best for you.
If you can manage multiple credit cards responsibly, you can benefit from lucrative rewards, cardholder benefits and the convenience of readily available credit.
Juggling more than one credit card can have its advantages, but the perks will only be worth it if you avoid credit card debt.

Credit cards can provide a wealth of benefits, like the potential to boost your credit score and the ability to earn cash back or other rewards. But each credit card offers its own set of benefits and drawbacks, so having only one credit card may not meet your needs.

Depending on your spending habits, shopping preferences and financial situation, you may find it makes sense to have multiple credit cards -- and to use them strategically to take advantage of different rewards and benefits.

But, how many credit cards should you have? At the end of the day, there’s no hard and fast rule. Some consumers who struggle with debt may even find the right number of cards for them is zero.

If you’ve been looking for tips on managing multiple credit cards, or are still trying to decide how many is too many, here are the factors to consider first.

How many credit cards should I have?

There’s no one-size-fits-all answer to that question. Instead, there are several factors you can consider to help determine the number that’s right for you:

Your spending habits

If you want to maximize your credit card rewards, it could make sense to open multiple credit card accounts to take advantage of their different rewards programs. For example, it’s common for consumers to opt for a credit card that earns bonus rewards in their top spending categories and another card that earns a higher rewards rate on regular purchases like gas and groceries.

Savvy travelers might pair a co-branded airline or hotel credit card that features brand-specific travel benefits with a flexible travel credit card that allows point transfers. That way, you’d get perks with your preferred hotel while avoiding the inflexibility some of these cards show in their rewards programs.

If you don’t use your credit card often or only use it for a specific purchase, like gas, then having multiple accounts might not make sense.

Your credit score

Having multiple credit cards can help or hurt your credit score, depending on how you manage them.

The more credit cards you have, the more available credit you have. This can help you keep your credit utilization ratio low and improve your credit score.

However, if you’re carrying a balance on those cards or if you’re putting all of your spending on just one card, your credit utilization rate could increase and damage your credit score.

Your organizational skills

Having multiple credit cards means keeping track of transactions and monthly payments across numerous accounts. If you manage them well, it can reflect positively on your payment history. But if you miss a payment, it could damage your credit score -- at a minimum, you’ll get slapped with a late fee and interest charges.

If you’re thinking about adding another credit card to your wallet, carefully consider your reasons and the potential issues that you’ll encounter by adding another account.

Advantages of having multiple credit cards

There are several reasons to consider using more than one credit card.

Maximize rewards or cash back

It’s rare to find two credit cards that offer identical rewards programs. One card may offer big rewards on everyday spending categories like groceries, dining and gas but fall short when it comes to rewards for travel or entertainment.

Depending on how you spend your money, supplementing one or more tiered rewards cards with solid rewards rates can help you maximize your points or cash back throughout the year.

Access different types of benefits

Maybe you want an airline credit card that offers free checked bags and priority boarding with your preferred airline, but you want to earn higher flat-rate rewards for everyday purchases that provide shopping protections to insure your new purchases. By having multiple credit cards with different types of benefits, you can piece together all the perks you want to have.

More flexibility when traveling

If you’re traveling abroad, you may have trouble using some cards internationally or paying foreign transaction fees, which can range from 1% to 3% of each international purchase. But when you’re traveling domestically, a different card may offer you better rewards for dining out and car rentals.

Risks of having more than one credit card

While there are some clear benefits to having more than one credit card in your wallet, there are also possible drawbacks to keep in mind.

Higher potential for debt

If you struggle with overspending, adding more credit accounts to the mix can do more harm than good. Consider restricting the number of cards you have if you believe more available credit will tempt you to spend more.

Harder to manage

The more credit card accounts you open, the harder it will be to keep track of everything. You can lighten your load by setting up automatic payments and using a budgeting app to track all transactions in one spot, but something may still slip through the cracks. Plus, with multiple cards, it can be a challenge to remember which one to use to maximize your rewards and benefits.

Can damage your credit

One additional hard inquiry on your credit report won’t impact your credit score by much. An inquiry typically knocks fewer than five points off your score, according to FICO. But if you apply for multiple credit cards in a short period, it can have a compounding negative effect on your credit. Increasing your credit utilization ratio by carrying a balance and missing payments can damage your score even more.

How often should you apply for a new credit card?

Each time you apply for a credit card, the lender performs a hard inquiry. Too many inquiries can signal to banks that you are a credit risk. A hard inquiry on your credit report can cause your credit score to drop, but multiple credit inquiries can be especially damaging because they raise a red flag to lenders.

As a result, future creditors may offer you higher interest rates or deny your application altogether because of the added risk. The general rule of thumb is it’s typically best to wait at least 90 days between new credit applications. If you can wait six months between applications for new credit cards, that’s even better.

How many credit cards is too many?

There are no rules that say when you have too many cards, or even too few for that matter. Your credit score won’t plummet once you obtain a certain number of credit cards, either. But an easy way to tell if you may have too many is if you have trouble managing the payments, whether it’s because you’re overspending or because you’re having trouble keeping track of all the cards.

However, it’s important to have a solid credit mix. Too few accounts make it difficult for scoring models to render a score. With a thin file, credit actions can have a larger effect on your score than if you had more accounts.

On the other hand, if having lots of cards makes your life complicated and you miss a payment, that can negatively impact your credit score, too.

How to get the most value with multiple credit cards

Consider these tips to maximize multiple credit cards without falling into common credit card and spending traps.

Space out applications

Ease into the process of managing multiple cards instead by waiting at least 90 days before applying for a new card -- six months is even better.

Not only will this help minimize impacts to your credit score, but it will also make it easier to earn lucrative credit card bonuses that may be available to you. Most welcome bonuses require you to spend a set amount of money over the span of a few months, so spreading out card applications can let you earn each welcome bonus without having to overspend.

Choose cards that complement each other

Figure out which combination of cards would benefit you the most, and then strategically apply for cards. If you only want to earn cash back, for example, this could mean applying for cards with different bonus categories or applying for a card with bonus categories and one card that earns the highest possible flat rate cash back on regular purchases.

For example, consider pairing the Chase Freedom Flex®* for its rotating quarterly bonus categories with the Wells Fargo Active Cash® Card*, which lets you earn 2% cash rewards regardless of purchase category.

If you travel a lot, consider pairing cards with different perks and benefits, or cards that let you move points between programs. For example, the United^℠ Explorer Card would let you qualify for frequent flyer perks and earn United miles. You could pair it with the Chase Sapphire Preferred® Card to earn rewards on purchases and then transfer Chase points to your United account

Spread out spending over multiple cards

It can also benefit you to spread out spending across multiple credit cards. In addition to earning different types of rewards for purchases, using multiple cards can help you avoid utilizing too much available credit on any one card in a given month.

Using multiple cards for different types of spending can also help you access cardholder benefits that might apply to some purchases and not others.

For example, you can charge travel purchases to a credit card that offers travel insurance benefits, and you could use a cash-back credit card that offers extended warranties or purchase protection when you make large purchases.

Have a plan to avoid credit card debt

No matter what you do, don’t take on multiple credit cards unless you have a plan in place to avoid credit card debt. This may mean setting up your credit cards for automatic payments, only using plastic for planned spending or using credit cards with a monthly budget or spending plan. Whatever you have to do to avoid debt will be worth it.

The average credit card interest rate is currently well over 20%, according to CNET sister site Bankrate, and that’s just the average. If you carry debt on one card or several, these rates mean everything you buy will cost considerably more than you actually paid and potentially wipe out any value you earn in rewards.

The bottom line

Having multiple credit cards can help you increase your credit score and earn rewards if you manage them responsibly. Depending on your spending habits and financial situation, you may find it makes sense to have multiple credit cards -- or you may not.

There are both advantages and disadvantages to having more than one credit card, so you should weigh the pros and cons carefully before applying.

FAQs

Using multiple credit cards can impact your credit score in a few ways. Every time you apply for a new credit card, the hard inquiry can knock a few points off your credit score. Opening several accounts at once can also decrease your average age of accounts, which is one of the measures of your creditworthiness, so that can hurt your score.

That said, managing more than one credit account responsibly -- using your cards regularly, keeping your credit card balances low relative to their credit limits and paying your bills on time every month -- can do more to improve your credit than if you used just one card.

Applying for a credit card will typically impact your credit score because of the resulting hard inquiry on your credit reports. However, getting denied doesn’t affect your credit score.

If you do get denied, wait before applying for another card. The credit card company should send you a letter explaining why you were denied. Depending on the reason, you may be able to make some changes to boost your chances of approval when applying for a different card in the future.

There are several types of credit cards to pick from, and it can be a challenge to determine which one is the best credit card for you. Start by considering your credit score -- the cards that offer the best rewards and perks are reserved for those with good or excellent credit, which generally starts at a FICO score of 670. If you have your heart set on a specific card and your credit isn’t strong enough, take steps to improve your score before you apply.

Next, think about what type of features you want in a card. If you want rewards, would you prefer cash back, points or miles? While cash-back credit cards offer more flexible rewards, many travel credit cards offer big sign-up bonuses and valuable points or miles. Make sure the rewards card would help you earn based on your regular spending.

Finally, think about the other features you want in a credit card, such as travel perks beyond points and miles, insurance protections or 0% APR promotions. Shop around and compare multiple credit cards to determine which one can provide you with the most value.

You may be able to have two of the same credit card, but this situation is relatively rare. Whether you’re approved for multiple of the same credit card depends on the card issuer and their rules. You can typically apply for two or more different cards from the same credit card issuer. Check the issuer’s site for rules on how often and how many cards you’re allowed to apply for.

You can apply for several cards at the same time, but that doesn’t mean you should. Too many hard inquiries on your credit reports at once can cause your credit score to drop, and credit card issuers who see other recent inquiries on your reports are also less likely to approve you for new credit.

*All information about the Chase Freedom Flex and Wells Fargo Active Cash Card has been collected independently by CNET and has not been reviewed by the issuer.

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