How Many Credit Cards Should You Have

Credit Card

posted on Wednesday, June 1, 2022 in Financial Tips

A credit card is a great way to purchase the products you need without using physical cash. Because of this, people tend to apply for more than one credit card. If you’re a credit card holder, chances are you’re planning on getting another one. Here are a few facts about how many credit cards you should own:

Benefits of Having Multiple Credit Cards

Having more than one card can benefit you and your finances. Here are just some of their pros for you to consider:

  • Multiple Cards Can Help Your Credit Score: If used correctly, credit cards can help you build and improve your credit score. This can be done by completing all of your payments on time. Doing so increases your credit worthiness, making financial institutions and lenders willing to give you more.
  • Your Other Cards Can Become Backup: Owning multiple cards allows you more financial flexibility. Your other credit cards can be a backup card in case your main one gets lost or stolen. They can also allow you to split the cost of a big expense between multiple cards instead of maxing out your main one.
  • You Can Maximize Your Perks and Rewards: Credit cards today have a variety of perks, rewards, bonuses, and benefits that you can enjoy. Depending on your card, you can earn air miles, cash backs, zero interest, and more whenever you use them. You can have multiple cards to fit your lifestyle and spending habits.

How Many Cards Should You Own?

On average, Americans today own at least four credit cards. There is often no hard limit on how many credit cards a person can own. That’s because credit card issuers and financial institutions do not look at the number of cards in a person’s credit report. They look at the person’s credit score, income, and debt-to-income ratio.

While it’s not a bad idea to carry multiple cards from different financial institutions, you should be aware of how much credit line you can reasonably handle. Having too many cards can become difficult to manage, especially if multiple payments are due simultaneously. It all boils down to how the cardholder handles their finances.

Although it’s now easy to apply for a new card, in most cases, it’s not advised to apply for multiple credit cards simultaneously. Doing so can negatively affect your credit score, which can be a red flag for lenders. It’s best to wait for at least 90 days before applying for a new card. You can even wait six months to ensure your credit score is good.

If you’re interested in getting your credit card, contact Community 1st Credit Union and talk to one of our representatives. Choose from our options and enjoy many benefits like cash backs, low rates, and more.