How many credit cards do you own? According to recent data, the more Americans have more than ten credit cards in his or her name than at any point in the past. That is an increase from 2004, when only 10 percent of Americans had more than ten cards. However, what is the right number to have? Individuals must make this decision on their own. How much you use your credit and how much you can afford to use them will play the biggest role in this process.
How Much Do You Use Them?
In that study, released by Experian, one of the three major credit card bureaus in the country, there are two groups of people.
- In one group, 14 percent of Americans had more than 10 cards and were considered heavy card users.
- The second group had 14 percent of people who use more than half of those credit cards they had.
The lower group of Americans still use credit cards, but on average only have seven cards, which is still two more than they did in 2004.
How It Stacks Up
Applying for too many credit cards is not a good thing. If you apply for multiple credit cards, especially in a short amount of time, it indicates that you are desperate for credit. You may be looking to increase how much credit you have available to you. The risk, to the lender, is that you will use more of that credit and then default on it. This can pull down your credit scores and indicate to the lenders that you are too risky to lend to.
The right number of credit cards is hard to say. How many credit cards should a person have? In general, there is no hard number. Rather, you should keep your overall credit balances down. If you do not use your credit cards or you pay them off in full each month, it is less likely that the actual number will hurt you. However, if you do carry a balance, having fewer credit cards is important. It can help to keep your debt low.
How Many Credit Cards Should I Have for Good Credit?
Another thing many people ask is about credit scores. There is not a magic number of credit cards to have to improve your credit. Rather, use your credit wisely. Keep balances low and pay off your debt each month. As your credit scores improve, apply for new lines of credit at the rate of no more than one every six months. Apply only to cards that are a better option for you, perhaps with a lower interest rate or a better rewards program. Maintain good credit by making payments on time and keeping your overall debt levels lower.
