How Many Credit Cards Should You Have?

How many credit cards should I have?

Starting with two credit cards is a great baseline. Having two credit cards from different lenders gives you flexibility, and if one card or lender is compromised, you have a backup and aren’t stranded without access to credit.

Americans on average have 3.9 credit cards as of the third quarter of 2023, according to credit bureau Experian. Most people build their credit portfolio over time as they age and their credit needs expand.

Your spending habits and ability to pay all bills on time determine the best number of credit cards you should have.

How many credit cards is too many?

Credit scoring formulas don’t punish you for having too many credit accounts, but you can have too few. Think more about your total credit portfolio when applying for a new credit card. 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.

Having too many credit cards to comfortably manage may result in missed payments and drag your credit scores down.

How many credit cards you have will affect your average credit age and credit utilization, which is how much of your credit you have in use. The age of your credit and your utilization are both factors that affect your credit scores.

Can you have too few credit cards?

Yes. Having too few accounts can make it hard for scoring models to issue you a score. People with a thin credit file have a harder time building their score and are viewed as riskier by lenders.

With a thin file, how you use your credit can have a bigger effect on your scores than if you had more accounts. One example: With few cards, it might not take much spending to use a lot of your overall credit limit. People with the best scores tend to use less than 10% of their credit limits. Generally, anything below 30% of your limits will put you in a good position. More cards may help you with keeping credit utilization low.

On the other hand, if you have lots of cards and you miss a payment, that can devastate your scores. Make sure you're able to stay on top of due dates.

It’s important to note: You must be at least 18 years old to apply for a credit card, and it might be difficult to get approved if you're under 21.

As you start out with credit, It’s a good idea to focus on building good financial habits. Having a reliable income is only one piece of the puzzle. Things such as good organizational skills, a solid understanding of how to manage money and an ability to meet deadlines are crucial.

How to manage multiple credit cards

Space out credit card applications

Each application for credit causes a hard inquiry, which can ding your scores by a handful of points. The effect is small and fairly short-lived. However, applying for multiple credit cards in a short period of time can be interpreted as a sign of credit risk, and all those hard inquiries add up. Spacing credit applications about six months apart can prevent multiple hard inquiries from affecting your scores.

Coordinate multiple billing cycles

This might seem obvious, but the more credit cards you have, the more due dates and credit limits to keep track of. One solution is automating monthly payments or changing your due dates to the same day or to align with paydays to make sure you remember to pay. You can also track your credit utilization, spending and income on the NerdWallet app.

» Get your free credit score with NerdWallet

Time credit applications with big future purchases

If you’re planning to make a big purchase — such as  a new home or car — it’s a good idea to time your credit applications to protect your credit scores. Applying for a single credit card can ding your credit scores, but the points will rebound in about six months. Keep this time frame in mind and hold off on credit card applications until you’ve completed your big purchase.

» Getting ready for a big purchase? Don’t forget to temporarily unfreeze your credit

How do multiple credit cards affect your credit scores?

Here are a few things to keep in mind if you're thinking of opening (or closing) a credit card:

Your credit utilization

The portion of your credit limit that you have in use, also called credit utilization ratio, accounts for about one-third of your credit scores. In general, keeping your balances well below 30% of your credit limit helps maximize your scores, and lower is better.

Opening new cards could benefit your credit scores by increasing your overall credit limit. That will decrease your credit utilization as long as you don't spend more and send your balances up.

» MORE: Does opening a new credit card harm your credit score?

Your payment history

About 35% to 40% of your credit scores is determined by your payment history, making it the biggest factor affecting your scores. That means paying on time is far more important than how many cards you have. Grouping your credit card due dates together or automating your payments can help you stay on top of multiple credit cards.

Your credit age

Creditors like to see a long, stable credit history. It’s not enough to have one really old card, though. Your credit scores consider the average age of all of the cards you have.

That doesn't mean you can never close a card. If you have a compelling reason — like high fees or poor service — it may be worth a possible temporary ding to your score. If you have multiple cards with the same issuer, you can also ask to switch your credit card to a no-fee version instead of closing it. This typically lets you keep your credit line, so your overall credit utilization is not affected.

If you want to keep things simple, that's fine too. Focus on the credit habits you follow, regardless of the number of cards you carry. Paying on time and not using too much of your credit limits have a powerful effect on credit scores.