How Many Credit Cards Should You Have? Experts Weigh In

The vast majority of People personal both two (29.3%) or one (28.6%) bank card(s), a current GOBankingRates survey discovered — however what number of bank cards is the perfect quantity?

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In line with specialists, there is no such thing as a one-size-fits-all reply, however there are some normal guidelines of thumb.

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Lyle David Solomon, a chapter lawyer at Oak View Regulation Group, recommends that his shoppers in the reduction of on their bank card use when they’re recovering from a serious blow to their credit score rating, equivalent to a chapter submitting.

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“Usually, when persons are simply getting out of chapter, I like to recommend that individuals solely have one card and use it sparingly,” he mentioned. “Make small purchases right here and there, underneath $100, and pay it off in full straight away to construct up a credit score historical past.”

Nevertheless, if the rationale you needed to file chapter was as a result of bank card debt and you don’t belief your self to spend responsibly, it might be greatest to forgo having a bank card altogether.

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“Some individuals can’t even have one and want to stay with a debit card,” Solomon mentioned.

Usually, Three to 4 Playing cards Is a Good Quantity

“For most individuals, I really feel three to 4 [credit cards] is acceptable,” Solomon mentioned. “It’s good to have a every day use card with an excellent rewards program. When you journey steadily, an airline miles card or resort rewards card can be helpful. Additionally, there are nonetheless some locations that solely take one sort of card. It’s good to have a mixture of Visa, Mastercard and American Specific for various conditions. When making a big buy of electronics, it’s good to have the AMEX ensures, in addition to different advantages.”

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Plus, completely different rewards playing cards have completely different advantages, so it’s greatest to have a combination for various kinds of purchases.

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“Having a number of playing cards in your pockets and utilizing these playing cards on the forms of purchases that earn you probably the most rewards will be an effective way to maximise the worth you get out of your bank cards,” mentioned Justin Zeidman, head of bank card merchandise at Navy Federal Credit Union. “Accountable credit score utilization is paramount, however in case you are in a monetary place the place you’ll be able to handle multiple card, it may be very helpful to have a number of playing cards in your pockets.”

You Can Have Extra Than 4 If You’re a Credit score Card Professional

When you’re in good monetary standing and need to reap probably the most bank card rewards attainable, it’s possible you’ll need to have much more than 4 playing cards.

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“The perfect variety of playing cards is exclusive to the person,” Solomon mentioned. “I do know one particular person with 27 bank cards, however she additionally has an 800-plus credit score rating, has a seven-figure earnings and travels continuously. She makes use of her playing cards to save lots of herself effectively over $10,000 per 12 months.”

Credit score knowledgeable John Ulzheimer agrees that there is no such thing as a most variety of bank cards for an individual with good spending habits.

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“For somebody who’s accountable about utilizing their playing cards and by no means carries a steadiness, there is no such thing as a variety of playing cards that’s too many,” he informed CNBC Choose.

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Final up to date: Oct. 22, 2021

This text initially appeared on GOBankingRates.com: How Many Credit Cards Should You Have? Experts Weigh In