How Many Credit Cards Should I Have?

Determining the Ideal Number of Credit Cards to Possess

In the current era, the question, “How Many Credit Cards Should I Have?” is one that echoes through the corridors of personal finance. With a wide variety of credit cards available in the marketplace, the dilemma of how many to own can be daunting. However, this decision largely hinges on your individual circumstances, financial stability, and debt management abilities.

The Interplay Between Credit Cards and Your Financial Health

While some may view multiple credit cards as a potential debt trap, they can actually serve as a tool for financial management if used responsibly. The number of credit lines one should maintain is dependent on their ability to manage debt, personal preferences, and the impact on their credit score.

Credit Score and the Number of Accounts

A crucial point to understand is that the number of accounts you have can influence your credit score. While it’s not the most critical factor—that honor goes to your credit history—it still plays a part in your credit score calculation.

Creditors are interested in your credit management experience. The more accounts you’ve successfully managed, the more they can trust your ability to repay any new credit they extend. Thus, a higher number of accounts can potentially lead to a better credit score.

It’s essential to clarify that the term ‘accounts’ doesn’t only refer to credit cards. It encompasses various types of loans such as mortgages, auto loans, and student loans. So, there’s no need to own a stack of credit cards to boost your credit score. A diverse mix of credit types can be more beneficial.


According to data from major credit bureaus, having less than 10 accounts is considered “poor”, whereas having over 20 is deemed “excellent”. The “good” range lies somewhere in between. It’s noteworthy that this total number includes both open and closed accounts.


Striking a Balance with the Number of Credit Cards

There’s no universally perfect number of accounts for every consumer. Some people can adeptly handle multiple open accounts, while others may find it overwhelming.

The good news is, the account number factor for your credit score accounts for both open and closed accounts. Thus, you don’t have to maintain numerous simultaneous open credit accounts. It’s advisable to allow your finances to stabilize after opening a new account before taking on another.

For most consumers, managing a few active credit cards along with a few active loans at a time is manageable. This means dealing with approximately half a dozen bills every month. Adding the number of closed or paid-off accounts should ideally place you in the “good” range for the account number credit score factor.

The Impact of Reduced Number of Credit Cards

If you choose to maintain fewer credit cards due to the fear of managing extra debt, it shouldn’t dramatically affect your credit score. Even with no credit cards, you can maintain a good credit score, provided other factors such as your credit history are excellent, and your debt is low.

However, having a “good” number of accounts can make maintaining your desired credit score easier. While it’s possible to achieve a “good” number of accounts with loans alone, it’s usually simpler with some credit card accounts included since most consumers don’t take out a multitude of loans.

Overwhelmed by Multiple Accounts?

Recognizing the signs of having too many accounts for your financial well-being is essential. If you find yourself struggling to keep up with bill payments, it’s time to reassess. Avoid letting credit card debt payments destabilize your financial situation.

For those grappling with high credit card balances, seeking professional help can be beneficial. Speaking with a trained credit counsellor can guide you towards effective debt management strategies.

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