How Many Credit Cards Should You Have?

You ’ re probably familiar with the benefits of having a credit card : convenience, rewards, protective covering against unauthorized manipulation, a way to build credit rating history—the number goes on. however, are there benefits to having more than one citation circuit board ? And if so, how many should you have ? Read on to learn the benefits and drawbacks of carrying multiple cards .


There are enough of reasons to have more than one credit rating card. With multiple cards, you :

  • may improve your credit score. More credit card accounts gives you more available credit to use. And, if you have modest spending habits, you may be able to improve your credit utilization ratio, which is calculated by dividing what card balances you have by your total credit limit. A good credit utilization rate is a boon for your credit score.
  • can separate expense types by credit line. Do you run your own business? Carrying a second card for business expenses can make tax deductions a breeze—just keep your personal everyday spending and business purchases on separate cards for easy record keeping!
  • can maximize your rewards programs. If you’re hoping to maximize your perks, then consider carrying multiple rewards credit cards. For example, you could fund your dinners with a card that earns extra points at restaurants and pay for other expenses with a general cash-back card.
  • can keep a backup card. Sometimes a retailer only accepts one type of card (Visa® but not American Express®, for example). Sometimes you accidentally leave your main credit card in your car or on your kitchen counter. In either case, having a spare card on hand could be a lifesaver. 


For all the benefits of having multiple types of credit cards, there are besides some likely challenges. You could :

  • see a temporary drop in your credit score. When you apply for a new credit card, a hard inquiry may be made on your credit file. This could temporarily knock a few points off your credit score. Opening a new account also lowers the average age of your credit accounts, which may impact your score. For this reason, you may want to avoid new credit card applications if you’re planning on applying for a loan in the near future. 
  • lose track of spending. Divvying your spending across multiple accounts can make it harder to keep track of how much of your money you’ve really spent. For example, 3 credit card statements with $400 balances each may give a different impression of your financial situation than $1,200 on a single credit card. To avoid overspending, get in the habit of checking your account balances on a regular basis—weekly, for example. 
  • mix up due dates. Since different cards may have different payment due dates, you’ll need to keep track to make sure you don’t miss any monthly payments. Fortunately, many credit card issuers allow you to set up automatic payments, so you won’t have to worry about missing a due date. You can also contact your issuer to see if they’ll let you change your due date to keep your different cards on the same schedule. 

So—How Many Cards?

ultimately, it ’ s up to you to decide the number of accredit cards you feel comfortable keep. It ’ s surely potential to have an excellent credit score with just one credit rating tease and you may besides save on annual fees, but having multiple cards may suit your spend habits better and enable you to maximize your rewards scheme. If you ’ re uncertain about whether or not you have the right act of cards, you can access a absolve credit report from Navy Federal Credit Union ’ second Mission : recognition Confidence Dashboard to see if you have a warn about having “ besides many exposed revolving accounts. ”
If you ’ re ready to open an extra credit card, explore our accredit poster offerings at Navy Federal to find one good for you .

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Category : Finance

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