How Many Credit Cards Should I Have? Best Practices for Credit Cards

According to a Credit Karma report, the average American has 2.5 credit cards. Some have two; for others, it’s three. Of course, outliers may have more or less. The number is all over the place, which raises the question–how many credit cards should I have?

There’s no perfect answer like so many other things in life because personal finance is personal. However, you can use some essential criteria as a guide. So, keep reading to learn about the pros and cons of how many credit cards fit your budget and lifestyle.

Credit Card Pros

1) To build credit. There’s no arguing that money is essential. Credit extends your purchasing power for a home mortgage, to invest in a business, and to finance an auto loan. In addition, you can use credit cards to build credit responsibly.

2) To earn rewards. Nobody wants to spend more than they have to. So credit card companies may offer cashback or points on your everyday purchases to save you money with little effort.

Credit Card Cons

1) The potential to overspend is real. It’s easy to spend more than you intend when using a credit card versus cash–and there’s science to prove it.

2) It’s expensive if you don’t pay off the balance every month. Credit cards have high-interest rates that can take years to pay off when only paying the minimum balance.

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