How Many Credit Cards Are Too Many?

Credit card is an amazing financial instrument that gives essential credit facility whenever we need it. You can use a credit card to purchase goods and services on credit and pay the debt later or convert the amount in easy installments.

A credit card does not come with all advantages, there are some significant disadvantages as well like overspending, mismanagement of funds, etc.

A sudden availability of funds gives rise to overspending and when you couple it with multiple credit cards the credit burden can be very high on individuals.

This brings us to a question: How Many Credit Cards Are Too Many?

In this article, we will discuss how many credit cards are too many, Risk associated with having Multiple Credit Card, etc.

But let’s find out how many credit cards are too many.

How Many Credit Cards are Too Many

Benefits of Having Multiple Credit Cards

The following are the benefits of Having multiple credit cards-

  • Having multiple credit cards can give you access to more credit as compared to one or two cards
  • Multiple credit cards can give you access to greater reward points, cashback offers, store offers, and much more
  • Multiple credit cards can help you make purchases whenever you are in need, especially during an emergency
  • You can allocate multiple credit cards, each for a specific purpose like one credit card for booking flights, one for shopping online, etc.

Risks Associated with Having Multiple Credit Cards

The following are the risks associated with Having Multiple Credit Cards-

  • With multiple credit card debt, managing the finances and paying off the debt can be challenging
  • Each credit card will have its own interest rate and payment structure, without proper centralization, credit card payments can be missed which can impact your Credit score
  • Having multiple credit cards can lead to unorganized use of the cards and lower your CIBIL score by impacting your credit utilization Ratio
  • Multiple credit cards can put you at a higher risk of security breaches, credit card theft, etc.

Determining the Ideal Number of Credit Card

Here, we have analysis of the ideal number of credit cards needed for you-

Find out What is your Spending Habit

The very first step to determining how many credit cards you need is to evaluate your spending habits. If your spending habits include online shopping, flight booking, etc. then you should go for one card for each of your credit card categories.

There are various categories of credit cards where you can get specialized offers and benefits. The following are the different categories of credit cards available for you-

  • Rewards credit cards
  • Cash-back credit cards
  • Travel credit cards
  • Business Credit Card
  • Student credit cards
  • Secured credit cards
  • Co-branded credit cards
  • Store credit cards

When you are finding a credit card, try to evaluate the card based on its features and specialized offers for different categories, compare them, and find those credit cards that fit most of the categories.

What is your Financial Goal?

Find out what is your short-term as well as long-term financial goal and based on that you’ll have to determine how many credit cards you need.

Consider Your Creditworthiness

Your creditworthiness is important for you to apply for a credit card or any other loan. You’ll have to plan your application such that there is ample time between your credit card application so that your credit score does not get lowered.

Every loan application or credit card application makes a strong inquiry regarding your credit score from the credit bureaus hence, impacting your credit score which may result in lowering your credit score.

Do a Cost and Benefit Analysis

Before making any financial decision, you’ll have to make a detailed cost and benefit analysis to ensure that you do not make any bad decisions when it comes to applying for a credit card.

Determine the benefit that is offered by the credit card companies and then determine the cost that can be incurred by you.  

Seek Professional Help

If you have any issues in determining how many credit cards you need or any other financial advice, then the best thing to do is to seek professional help. You can get some of the best financial advice from these professionals which will give you amazing strategies to save, invest, and create wealth for yourself. You can also get advice on the best credit cards that you can apply for.


The number of credit cards you own is your personal decision, however, tracking back from a credit card can be tough and could hurt your credit score.

Once you own a credit card closing off that account can hurt your credit score, so every credit card you have must have a clear cost and benefit analysis before applying for the credit card.

Moreover, it can impact your credit utilization which may result in a lowering of your credit score which ultimately results in your inability to take loans.

There is no ideal number of credit cards that you’ll need, but it depends on your own needs and financial goals. There are some specialized credit card and some credit card that fits every category.

The best strategy to start is to start with one credit card and gradually increase your credit card number based on your increasing spending. Also, one other way you can use is to convert the credit card type by talking to the bank.

For instance, if you have an SBI Pulse Credit card but, you now like the SBI SimplySAVE credit card then you can convert your exisiting card to this new card by contacting the bank and telling them your requirements.