While the number of cards you carry likely won't have an effect on your score in isolation, avoid applying for several new credit cards at one time. That can negatively impact your credit score in the short term.
Yes, two credit cards will build credit faster than one, if used responsibly, because having a second card generates more positive information to report to the credit bureaus each month. Having a second card will increase your total credit limit, too, making it easier to maintain low credit utilization.
"Too many" credit cards for someone else might not be too many for you. There is no specific number of credit cards considered right for all consumers. Everyone's credit history is different. Lenders tolerate different levels of risk, and different credit scoring formulas have different criteria.
The effect on your credit score is probably one of your major concerns about having multiple credit cards. That is a common consideration, but having more than one credit card can actually help your credit score by making it easier to keep your credit utilization ratio low.
In general, it's best to keep unused credit cards open so that you benefit from a longer average credit history and a larger amount of available credit. Credit scoring models reward you for having long-standing credit accounts, and for using only a small portion of your credit limit.
Credit bureaus suggest that five or more accounts — which can be a mix of cards and loans — is a reasonable number to build toward over time. Having very few accounts can make it hard for scoring models to render a score for you.
A zero balance on credit card accounts does not hurt, but it certainly does not help increase a credit score either.
There is no universal number of credit cards that is “too many.” Your credit score won't tank once you hit a certain number. In reality, “too many” credit cards is the point at which you're losing money on annual fees or having trouble keeping up with bills—and that varies from person to person.
We recommend having at least two open credit card accounts. It's best for your credit score to keep your oldest account open, and you should be able to get an upgrade for everyday spending after a bit of credit building. But there are lots of ways to get the job done.
MoneyGeek recommends waiting six months between credit card applications. Building your credit with two or more cards is possible, provided you use them responsibly. Not using your cards responsibly can hurt your credit score.
It's generally recommended that you have two to three credit card accounts at a time, in addition to other types of credit. Remember that your total available credit and your debt to credit ratio can impact your credit scores. If you have more than three credit cards, it may be hard to keep track of monthly payments.
Payment history — whether you pay on time or late — is the most important factor of your credit score making up a whopping 35% of your score. That's more than any one of the other four main factors, which range from 10% to 30%.
A hard inquiry typically drops your credit score about 5 to 10 points, and will stay on your credit reports for two years. However, the negative impact on your credit score ends after just one year. Opening a new credit card can also hurt your credit score by reducing your average age of accounts.
Nothing is stopping you from applying for two or more credit cards in a short period of time, or even at the same time. But multiple credit card inquiries can hurt your credit score and raise a red flag for future creditors.
The standard advice is to keep unused accounts with zero balances open. The reason is that closing the accounts reduces your available credit, which makes it appear that your utilization rate, or balance-to-limit ratio, has suddenly increased.
Credit utilization — the portion of your credit limits that you are currently using — is a significant factor in credit scores. It is one reason your credit score could drop a little after you pay off debt, particularly if you close the account.
Technically, there's no limit to how many credit cards you can have. If you want to break the Guinness world record for the biggest assortment of valid cards, you'll need to collect a whopping 1,498. But the perfect number of cards for you will depend on your personal financial needs.
While there's no perfect answer to how many credit cards you should have, the 2019 Experian Consumer Credit Review found that the average American has four. If you can responsibly manage multiple credit cards, you can maximize rewards, annual statement credits and interest-free financing.