How many credit cards should I have to improve credit score?

Short Answer

The ideal amount of credit cards that one could have is two cards. Should one have more than two credit cards? Beyond that, it seems necessary.

Detailed Answer

A very common query that comes to our mind, "How many credit cards should I have?" Now, do you actually ponder over "How many credit cards should you have?" Can we lookout for a perfect answer to these questions. May be 1, 2,3 or 5 is it so? Is having too many credit cards good?

Although, there seems to be no single answer to this. But, in my view, having 2 credit cards seems to be the ideal choice. Some, may look for a 3rd credit card as well, but anything beyond that doesn't sound interesting to me.

Does having extra credit cards improve credit score? No, I don't think so. What I feel is that having too many credit cards shows our credit hungry behaviour. At any time, applying for more credit cards doesn't seem a good idea to me.

  1. The number of credit cards that you have plus how you spend your credit actually impacts your credit score.
  1. To build a good credit score, one needs to be careful while applying for a card and further utilising the credit card limits.

So, what I feel is having one credit card is must but try settling at 2 or at maximum 3 that too if you really need these. That's it!

What do you think? How many credit cards do you have? What's your take on the number of credit cards you should have? Any suggestions to add here.

Tagged With: credit cardscredit cardcredit scoreimprove credit score
Categories: Finance
Comments (3)

    Hi, I am not suggesting to go for 2 credit cards. I do agree that one good credit card is enough, if you can actually get the perfect one in a single go. There are so many cards out there. You can't be sure which is the perfect one. One might be good at cashback & rewards while other may offer discount on shopping, paying utility bills etc. It's just in case, one comes across a better card with extra benefits or some ongoing offer. We can look for a second card also. Like when I applied few years back I got a StanC credit card for free. They have increased my credit limit also. Though, I am cautious to spend much below my limit. But, then I felt to grab some more discounts so opted for a second credit card. I could have surrendered the earlier one, I know. But, that's a free card so I don't feel like giving it away. There's no harm in continuing a free card that offers decent benefits alongwith a new issued card with additional advantages. What do you think about it?

    By holding one Credit card you can improve your credit score. If you are having too many credit cards then that hampers your image in front of the bank. It depicts that you don't have money & you are only arranging credit cards for credit. Secondly, having too many credit cards also makes difficult for you to arrange funds for repaying their monthly instalments which can definitely hamper your credit score and ruin it. However, depending upon the benefits and utilisation, having two cards is a good idea. You can have one card for fuel and another for rewards and cashback. As this will generate a lot of value to you and you can enjoy the reward points and other services. So, you can have two cards if you are in a stable and sound position to pay the monthly payment of both the cards. This will surely increase your credit score.

    Yes, I too feel that having 2 credit cards is more than enough. If you already have one credit card, applying for another card immediately can reduce your credit score. So, its better we stick to one credit card initially. Use it and look if it actually suits your requirements. If yes, great! If not, you can go for another credit card. Continue the first one only if it serves any purpose. It's tricky to choose the best credit card in one go. You can actually judge its actual benefits while using it. So, one should be careful and don't overburden yourself with too many credit card bills to pay. And yes, if you miss the bill due date, you'll have to bear the interest charges as well.

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