What Is the Ideal Number of Credit Cards to Have?

Have you ever wondered how many credit cards most people have? Whether you have just one credit card or juggle several, what's most important is that you manage your accounts responsibly.

Below, we'll explore how many credit cards most people carry, the potential credit score impact of opening new cards and how to decide the perfect number of cards for your wallet.

What Is the Average Number of Credit Cards Per Person?

According to a recent report, the average U.S. consumer has just about four credit cards (or an average of 3.9 active credit cards, to be exact). The same study revealed that the youngest group of consumers, Gen Z, has an average of two cards.¹

How many credit cards is too many?

There is no maximum number of credit cards that you should have, and there is no credit score penalty for having too many.¹ The key is to figure out how many cards work best for your spending style and overall financial situation.

For new credit users, it’s a good idea to open at least one card to start building credit responsibly.² Over time, you can open additional cards as needed.

For most people, having around three credit cards in the rotation seems to be the sweet spot. That’s because a small number of accounts shouldn't be too hard to keep track of, and you may be able to leverage different benefits and rewards from each one.³

How Having Multiple Credit Cards Impacts Your Credit Score

Credit score calculations are a reflection of how you use credit and manage your accounts rather than how many credit cards you have. While the number of cards you have doesn’t directly impact your credit score, there could be some indirect effects.³

Here’s a look at some of the main components of a credit score and how having multiple cards might play a role.

Payment history

Paying your bills on time is the most important factor in the credit score calculation.⁴ This is why it’s important to not overextend yourself with too many credit card accounts. Using tools like due date reminders and setting up automatic payments can help you avoid late payments as well.

Credit utilization ratio

The second most important score factor is credit utilization, which is how much credit you are using compared to your total credit limit.³ For instance, if you have $10,000 in available credit and you owe $7,000, that means you are utilizing 70% of your credit. Ideally, you want to keep your credit utilization below 30% and as close to zero as possible.³

For this score factor, having multiple cards can actually help, provided you are not running up high balances on all of them. Here’s an example:

If you had one credit card with a $5,000 credit limit and owe $3,000, that’s a 60% utilization. But let’s say you also have a second credit card with a $5,000 limit, and you keep that balance at $0. With a total available credit of $10,000 and the same balance on card number one, your utilization is down to 30%.

Length of credit history

How long you’ve been using credit is a factor in your credit score. While you don’t have much control over when you began using credit, keeping your oldest credit lines open and active can be good for your credit health. It's also why experts often recommend that you don’t close old card accounts.⁵

New credit

Though it’s not a major factor, your recent credit inquiries do affect your credit score.⁶ Every time you apply for a new credit card account, the lender performs a hard inquiry to check your credit history.³ As a result, your credit score will drop slightly.⁶ This impact is usually temporary, but it can hurt you if you are gearing up to apply for a mortgage in the near future.⁷

Applying for multiple cards in a short time frame could cause a more significant credit score decrease because it could signal that you may be having cash flow problems.³ Therefore, while it’s certainly OK to carry multiple cards, aim to space out your applications.

Pros and Cons of Multiple Cards

Deciding if you should get more than one credit card comes down to weighing the potential advantages and disadvantages.

Pros

• Earn more credit card rewards: Credit cards have unique benefits, rewards and other perks, so you might wish to have different cards for different purposes. For example, you can have a travel rewards credit card that helps you offset the cost of airfare and a cash-back credit card that gives you a percentage back on everyday spending categories like gas and groceries. You may also wish to add a co-branded card that gives you rewards for a specific retailer where you shop frequently.
• Increase your available credit: Having multiple cards gives you more available credit and, therefore, more wiggle room when it comes to credit utilization.³ With just one card, if you run your balance up and your credit utilization goes higher, your credit score will take a hit. But if you have multiple cards (and more available credit), one single balance will have less of an impact. Knowing you have extra available credit can also offer peace of mind in case of an emergency.
• Enjoy new cardholder offers: Sometimes, opening a new card allows you to take advantage of an introductory offer. Certain cards have welcome bonuses — such as cash bonuses or a lump sum of points — after you spend a certain amount in the first few months. Other cards offer an introductory 0% annual percentage rate (APR), which can be helpful when you have a large purchase or expense to make, allowing you a specified period of time (usually 12 to 21 months) to make payments without interest charges.⁸

Cons

• More accounts to manage: Having multiple cards does require you to keep track of more accounts.³ Staying on top of payment due dates and monitoring your spending is important to maintain good credit health.
• Requires discipline to keep spending in check: Carrying several cards might increase your temptation to overspend. If you’re having trouble paying your balances with just one or two cards, getting additional cards could lead to additional debt.²
• Annual fees can add up: If you have multiple cards that charge an annual fee, you may not get enough value from your cards for those fees to be worth it. If you find that to be the case, you can call the card issuer and ask to downgrade to a no-fee version of the card.⁹

Credit cards are excellent tools for building a strong credit history, but the number of cards you have doesn't matter much. In most cases, if you take a quality-over-quantity approach and choose two to three cards that offer you strong value, you'll be able to manage them well and keep your credit score in good health.

Managing Health and Wellness Costs With the CareCredit Credit Card

If you are looking for an option to help manage your health and wellness costs, consider financing with the CareCredit credit card.* Get the care you want or need with easy, flexible financing options that allow you to pay for out-of-pocket expenses over time. Use our Acceptance Locator to find a provider near you that accepts CareCredit. Continue your wellness journey by downloading the CareCredit Mobile App to manage your account, find a provider on the go and easily access the Well U blog for more great articles, podcasts and videos.

Your CareCredit credit card can be used in so many ways within the CareCredit network including vision, dentistry, cosmetic, pet care, hearing, health systems, dermatology, pharmacy purchases and spa treatments. How will you invest in your health and wellness next?

Author Bio

Dawn Papandrea is a journalist with more than two decades of experience covering personal finance and consumer issues. She has written for leading financial publications and organizations, including U.S. News & World Report, Investopedia, Bankrate and others.