How Many Credit Cards Are Too Many?

by Violet WillettNovember 10, 2023
How Many Credit Cards Are Too Many?

No number defines the exact limit of credit cards to be held. It depends on only one factor and that is the affordability of owning the cards. Can you pay the bills? Can you afford the credits each month? Are you responsible enough to own multiple cards? If these answers are validating your need to carry the excess luggage of an extra credit card then go for it. But if you can manage the bills later, never mind!

The number of the credit one should have entirely depended on the financial condition and personal situation. Owning more than one card or even only one card when you can't pay off the balance monthly is hectic and nerve-wracking.

Americans like to keep more than one card, some banks have policies that don't let you keep more than one or two cards. Because there can be fraudulent activities involved in it sometimes. Usually, Americans have an average of three cards and 2.4 retail cards which is stated by a credit report issued by Experian.

Following are the five drawbacks which one can face if they own more than one credit card:

More monthly payment

Multiple due dates with multiple payments to make can be a little confusing and also too much to handle. Also can face late fee charges if you forget about it.

More bank charges

A single card can be charged around $75 to $500 in the name of the bank charges per year. More cards means more bank charges.  

Risk of credit card debt

A greater number of credit cards means more money to spend. More money to spend means you can buy what you want, which can be dangerous sometimes. The statistics show that people with more cards usually go through debt.

Bad credit score

This doesn't really affect the b=credit score but it may have stuck the credit store at one point and that won't change for a long time due to two factors: credit card accounts with a short history and new credit inquiries. 

Meta Title: How Many Credit Cards Are Too Many?| ANY CREDIT

Meta Description: The number of cards you own really depends on one thing and that is affordability. More cards mean more liabilities. 

Dive even deeper, explore more of our Blog
Here at AnyCredit, we aim to make the most complex financial issues and topics easy to understand. In our articles, we will be making analysis, smart finance judgments, and honest conversations to help you make sense of your financial capacities and options.
Copyright © 2024 AnyCredit. All Rights Reserved.