Is it wise to have more than two credit cards? You might respond yes if you’ve ever had a huge credit card debt. Taking out many credit cards might surely make your debt payments unmanageable.
Nevertheless, there is no clear answer to how many credit cards you must keep. Getting more than one credit card has its perks. Most credit card experts believe that having numerous credit cards may help or hurt your credit score, dependent on how effectively you handle them.
This blog will discuss the number of credit cards one should have.
Is Having Multiple Credit Cards Beneficial?
If you use rewards cards, having numerous credit cards may give you greater buying power and opportunities to earn rewards, points, miles, or cash back. However, your main worry about having many credit cards is the impact on your credit score. It is a typical concern, but having several credit cards can boost your credit score by making it simpler to maintain a low credit use ratio.
The Number of Credit Cards You Need
Because everyone’s scenario is unique, no one can answer that question. You can make a compelling case for owning, at the minimum, one credit card to get security benefits and other perks such as rewards and points.
Getting extra credit lines to meet your once-a-month flexible budget, or you want to control your regular shopping to earn various incentives such as airline miles, cash back, or points might help you justify holding more than one credit card.
The Drawbacks of Having More Than Two Credit Cards
Having two credit cards might get too much for you if you can’t afford to pay your expenses, don’t need them, or don’t intend to use them.
While obtaining a new credit card might occasionally help your credit score by decreasing your overall credit line use ratio, obtaining a large number of cards in a few months is not recommended. Most card issuers have even implemented restrictions to stop people from applying for and cancelling credit cards after fulfilling the spending criteria and gaining rewards.
The Influence on Your Credit Score
A key disadvantage of getting too many credit cards is that it may make you appear riskier to financiers and reduce your credit score. Even if you have paid them all off, the simple detail that you have a lot of accessible credit lines might make you appear to your future lender as a possible liability.
There is no exact amount deemed too many, and it is preferable to sign up for and carry just the cards you require and can explain use depending on your credit score, capacity to pay bills, and rewards objectives.
Final Verdict
There are several advantages to having multiple credit cards, but only if they are used carefully. To guarantee that having many credit card accounts works for you rather than against you, be aware of the perks offered by each card, your credit limit on each account, and, most importantly, your payment due dates. The best way to look for such credit card companies is by comparing them on Great Canadian Rebates! We can indirectly help by providing a secure online shopping experience and offering additional security features for its users.