How Many Credit Cards Should I Have?

Assuming your goal is to have the absolute best credit profile and score possible, then paying attention to the number of cards you have is important.

You should avoid retail store credit cards, but should ideally have between three and six credit cards.  Having a few cards such as a Visa, MasterCard, Discover or American Express Rewards credit cards will permit the credit bureaus to track your payment history.

If you don’t have enough cards, the credit bureaus won’t know if you deserve a higher credit score because you consistently pay your bills on time and carry reasonable balances if any.

However, having too many credit cards can also penalize your credit score.   With several credit cards credit bureaus will be concerned that you could easily become burdened by significant debt.  This risk will be manifest by a lower credit score.

If you do have more than six credit cards, it may not be the best decision to close some of them however.  If you discontinue the use of one of your cards, simply keep a zero balance on those cards as this will help with your credit utilization rate.

Good Credit Sense:

Above all, be sure to pay attention to your balances and payment due dates for your multiple cards.  Options that may help you to keep track of each account include:

·      Call your card issuers and request that your payment be due on a specific day of the month.  If all of your credit cards have the same due date, it may be much easier to remember to pay your bills.

·      Enroll in an automatic payment plan.  Just in case you’re away on vacation the day your card payment is due, you’ll always know that at least the minimum required payment will automatically be processed.