There is no hard and fast rule as to how many credit cards you should have because the best number will depend on how you are using your cards in the first place. Most importantly, it is a must for cardholders to refrain from opening credit card accounts that they can’t manage responsibly.

One is the Magic Number if You are a New Credit Card Owner

If you are a beginner in the world of credit, starting with just one card is the wisest decision. The first several years of using your credit card is the most ideal time to learn how the products are being used and to form the habit of making payments right on time every month.

Having several accounts, with each having their own payment due dates and statement, can make the learning curve more complex. Lastly, novice cardholders must be extra wary of incurring debt. Some lenders might consider it as the tendency to overspend if you have several credit lines.

Intermediate and Advanced Card Users

After cardholders start to become more responsible in using their cards for at least one year, they can then apply for another credit card. This second card may provide lower interest rate, rewards for spending, or even an interest-free offer for promotional financing. Aside from that, there are credit cards that provide purchase protection policies and valuable travel insurance.

Having several accounts can benefit cardholders as well through improving their credit history and reducing debt to credit ratio at the same time as long as the debt amount doesn’t increase accordingly. These two factors are being taken into consideration when the credit score is calculated.

How Many Cards Should You Own Before It Gets Too Many?

Credit card holders must stop opening new accounts when they feel that they can no longer manage all their accounts properly and responsibly. A responsible use of credit cards means paying every bill on time and in full every month, keeping expenses under control, and not creating lots of debt. Cardholders may already have too many cards than necessary when they start to pay expensive annual fees for benefits or rewards that they are not even using in the first place.

However, if you constantly struggle with your credit card debt, a single credit card could already be too many. You can regain better control of your finances if you take a break from using your credit card and pay for the things you need using your available funds instead of relying on your credit line.

The moment you find yourself having difficulties in making your minimum payments right on time, it also indicates that it is time to think about your credit card use and opt for other payment forms instead. You still have to pay off your existing debt but the use of other payment forms can stop you from incurring more debt than necessary.

Credit cards are great payment methods but it also comes with great responsibility.