How Many Credit Cards Should A Person Have?

Wondering if you should take out that new credit card application? Why do people end up getting more than one credit card? Here are some reasons people get more:

They have run out of credit with their current cards.

Their current card is not accepted at most places or at least at the places that they would like to use them.

Their current cards do not offer a competitive rewards or cash back program.

Should you or shouldn’t you? Let’s look at the different attitudes towards the issue of how much plastic one should have.

The Sky’s the Limit

Some people like to collect credit cards like trading cards. The only problems I can see is that you will have more management oversight should you lose the cards or they are stolen. Besides that, your credit score usually takes a beating if you take out too many cards out at one time. Well, there are also more payments you have to make and make sure you do not make late or risk paying those exorbitant late fees!

Three Cards Max

I am not sure why but three seems to be the magic number. One card would certainly work in most cases. A good reason for having more than one card is if you have cards with different rewards programs that do not compete with each other. Whatever you do, try not to close any cards, even if you do not use them. Closing them often takes points off your credit score.

You Only Need One Credit Card

Having just one card sounds like the most reasonable solution to me. Advantages include building up your rewards or cash back balance faster when you use just one card. You aren’t really building up your total rewards faster but since all your spending is on one card, you build your balance up higher on that one card. The other advantage to having one card is that you are reducing the chances that you will run up a large balance. If you keep yourself to one card, you will only have one balance and one payment to worry about.

One Card is One Card Too Many

There are people out there who believe that credit cards are the root of all evil. At least the root of all money problems that people run into. I can think of other ways you can get yourself into financial trouble but if you can’t keep your card under control, then maybe one card is one card too many.


About the Author:
Peter Carville is a freelance article writer who writes for Financial Facts about the current financial news and the credit crunch.
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