How Many Credit Cards Should I Have?

Standard credit card usage can be difficult to determine, as it can vary from person to person. Some people swear off credit cards, while others have healthy or unhealthy relationships with them. Having a credit card has clear benefits but should not be abused. If you are wondering what is right for you when it comes to credit, there are a few things that you should keep in mind to stay financially stable. 

Not Everyone Needs More Than One Card 

As stated above, individual finances play a role in how many credit cards you should have. If you budget your money, have a savings plan, and are responsible, you should not need more than one. One credit card will help you build up a credit score and can save you from the stress of worrying about multiple payments. 

There are also situations where you may want to have more than one credit card. Sometimes cards simply do not work, for example. Or perhaps you want to have a different card to charge different items. In addition, it is important to remember that some credit cards offer good rewards (cash back, frequent-flyer miles, discounts, and more). Sometimes, people who are financially literate might want multiple credit cards to take advantage of various rewards. This is not for every person, and those who are just starting to build credit should not try to juggle multiple different cards and payments. There is no baseline number of credit cards that works for all people, and it can be hard to figure out what works for you. The typical American has more than three credit cards, but there are also millions of Americans in debt. 

In the end, it is truly about finding what works for you. If you are just starting out, even if you plan well and are responsible with your money, it is best to maintain only one credit card. If you are financially dependable, have good credit, and want to get more out of your credit cards, it is also okay to have multiple. The important thing is to keep track of every payment and purchase, and to make a budget and payment plan. While credit cards can be daunting, they can also be simple if you know what works best for you!