A 2016 study carried out by Gallup, found that around 3 out of 4 households in the USA have at least one credit card, in spite of this popularity of taking credit, managing it is a very different story. In fact, a 2015 investigation from Nerd Wallet, actually found that the average household credit card debt was as high as $15,000. These statistics do beg the question then, how many credit cards should you have.

The answer to this question comes down to responsibility, and how well you are able to manage your credit card debt. Assuming you are not very good at managing debt, the answer is 0 or 1 at the very most and the 1 should have a low limit so that you can learn to better manage. Assuming that you are a responsible person when it comes to your finances, multiple cards are a great idea and here is why.

Reap The Benefits 

For those who are able to among their credit cards, one of the best reason to use multiple cards is to be able to reap the rewards which come with using credit cards. Different credit card companies will offer different benefits for usage, some may offer or miles, others may offer benefits and discounts and some will allow you to amass points with you can then use in lieu of actual cash. Using multiple credit cards can really help you to make the most of all of the offers available.

Boosting Your Credit Score

When you use more than one credit card, your FICO score is greatly impacted and it helps to improve your debt-to-credit utilization ratio which is how FICO measure how much credit you can get. This is of course assuming that you are able to manage multiple credit cards and meet at the very least, the minimum payment each month.  If you are looking to take out larger credit in the future for a big purchase, then using multiple credit cards can put you in a strong position to do just that.

Easier Bookkeeping

If you are self-employed or urn your own business then you could use a different credit card for each are alf your life so that you can not only reap the benefits of rewards and improve your overall credit score, but also so that they become much easier to manage. If you are able to view one credit card statement and instantly know that it was for business expenses, rather than poring over each statement to highlight which purchase was for which aspect of your life, then this will make your life a great deal easier.


In short then, the truth is that if you are able to manage your debt in a responsible way, you should take as many credit cards as possible so that you can enjoy the benefits. If you re not responsible then keep it to a minimum, or none at all.

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