How Many Credit Cards Should You Have in Your Wallet?

How do you go about finding the perfect number? Do you need to start applying for new credit cards immediately, or is it time to scale down some?

Many people find a small handful of cards to be the sweet spot. Data from Experian show that the average American holds between three and four credit cards.

Benefits of Having Multiple Credit Card

– Cash sign-up bonuse – Points, miles, or cash back – Access to exclusive discounts, deals, and membership

Downsides of Having Too Many Credit Card

For one thing, managing a mix of credit and debit cards can be a logistical burden. Keeping track of it all gets more difficult the more accounts you add.

A Few Factors to Consider

Rather than a one-size-fits-all number of credit cards that everyone should stick to, it is instead a more individual process to determine the sweet spot for your finances.

What You Use Your Credit Cards For

One card may be fine if you prefer debit cards or cash and only keep a credit card around for infrequent purchases or emergencies.

Your Credit History and Credit Score

Adding more cards to your financial ecosystem can build your credit score in multiple ways, but it can also be detrimental in a few ways.

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