How many Credit Cards is too much in 2023?

How many credit cards is too much in 2023? Find out what experts recommend when deciding how many credit cards is ideal for your personal finance goals.

Have you ever questioned how many credit cards is too much? In the future, the answer to this could be drastically different than it is now.

With millennials typically having 2.5 cards and baby boomers usually possessing 3.5, it is essential to assess your fiscal requirements and ambitions in order to take judicious decisions regarding your credit card usage.

Regardless of whether you take advantage of them or choose to avoid the allure of spending beyond your means, it is essential to comprehend credit cards and their effect on your personal finances.

In this article, we’ll delve into the prevailing trend of credit card utilization and ponder what modifications could be in store for the future.

Read further to discover the top strategies for handling your credit cards in 2023! How many Credit Cards is too much to handle?

How many Credit Cards is too much
How many Credit Cards is too much?


  • Even, If you pay off all credit card dues on time, it may hurt credit scores.
  • Too many credit cards in your credit history may look more potentially risky to Credit lenders.
  • If you close an older credit card, this may hurt credit scores as closing an older credit card decrees the Average age of credit history.
  • The new credit card may help you in decreasing your overall utilization ratio.

How many Credit Cards should you have?

Having too many credit cards can be a liability for lenders and reduce your creditworthiness by decreasing your credit score.

A good starting point is to have at least one card to take advantage of the perks, but it is important to understand that having more than necessary may not be beneficial either;

Chase’s 5/24 rule does not approve applications if more than five credit cards have been applied for in the last 24 months.

It is essential to consider one’s budget and needs before deciding how many cards are appropriate.

What are the advantages of having Multiple Credit Cards?

There are several advantages of having multiple credit cards.

(1). Help keep Credit Utilization Ratio Low

If you have one single card and use it as much as 80% or above your credit limit, it will naturally bring down your credit utilization score.

(2). Helps build Credit Score

If you have numerous credit cards and still make all payments timely, you can build an excellent credit score. An excellent credit score increases your creditworthiness and gives you access to more credit opportunities.

(3). Increases Your Credit Limit.

If you have many credit cards, you as a cardholder have access to a higher credit limit. However, it would be best if you were responsible while using these cards.

(4). More Cashbacks and other forms of Rewards

Various Credit Cards give customers access to more card-related perks and benefits, which may be in the form of cashback and other rewards. Credit Cards offer you Cashback Rewards on all purchases you make, along with Travel Services, Purchase Protection, and Zero Fraud Liability Protection.

What are the disadvantages of having Multiple Credit Cards?

#1. You have more monthly payments to make.

Every time you acquire a new credit card, your monthly bills get more complicated. You will have additional payments to make with its due date to be remembered. If you miss payments, you might be charged late payment fees and might damage your credit score if unpaid.

#2. You pay too many annual fees.

It’s good to have all kinds of good credit card benefits, but these benefits usually come at a cost. The top credit cards with most perks typically charge you an annual fee ranging from $75 to $500. Annual fees might be worth it when you are getting more value than the card costs. You can reach the point where you are paying your annual fees for cards that you don’t use frequently.

#3.There is a great risk of Credit Card Debt.

As you possess more credit cards, you will have more available credit. Unfortunately, it is a responsibility that everyone does not handle well. Ideally, you should develop smart spending habits and follow them no matter how many credit cards you possess.

It is easy to fall into the debt trap of terrible debt habits when you have enough credit to spend lavishly.

#4. It’s harder to get approval for New Credit.

Having too many credit cards adds another hurdle to your Comfort of Credit which can be frustrating for you and is inevitable/ When you have too many cards, it starts getting harder to apply for a new card.

Lenders might see you as a significant risk if you have a high number of recent applications or new accounts. For instance, Chase usually denies any applicant who has already opened five credit cards or more within the last two months.

Does the number of credit cards impact my credit score?

The fact that you have more than one credit card doesn’t directly affect your credit score. However, if you have more than one credit card, you’ll have a low credit utilization ratio, which could improve your credit score.

When you have multiple credit cards, managing them can get confusing; you might end up paying annual fees and late fees. Just be sure to pay off all credit card dues on time and use credit cards less than 30% of their available limits.

How many Credit Cards is too much?

Having multiple credit cards can be beneficial, but managing them responsibly is key to maximize profits. It’s important to know the benefits of each card, credit limit and payment dues.

If your outstanding debt is 25% or more of total available credit, or if you’ve added too many cards in a short time, it’s best to avoid applying for another one.

There isn’t an ideal number of how many cards you should have; it depends on your spending habits and punctuality when paying bills.

For simplification, research cards that offer generous cashback rewards across different purchases categories like Grocery, Gas Stations, Dine-outs and Travel.

Manage your credit cards responsibly and do your research to benefit from them!


  1. Is it bad to have a lot of credit cards with zero balance?

    Suppose you have more than one zero balance credit card. In that case, that may help you to lower your overall utilization ratio. Suppose you allow a credit card with a zero balance for too long. In that case, the issuer may close your account, which might negatively affect your score by reducing your average age of accounts.

  2. is it better to close a credit card or leave it open with a zero balance?

    It is generally true that canceling a Credit card can impact your score. My advice is to stay unused accounts with zero balances open. The rationale is that closing the accounts reduces your available credit, making it appear that your utilization rate, or balance-to-limit ratio, has suddenly increased.

  3. Is it better to close a credit card or let it go inactive?

    If you do not use the credit card for a year or more, then the credit card issuer might close your credit. If you do not pay credit card Annual fees, then closing an old credit card may not be a good idea.

About Author

Dhiraj Jha
Dhiraj Jha
As a personal finance and credit cards expert, I provide valuable insights and advice on budgeting, saving, investing, and debt management. I am also an expert on credit card rewards programs and help readers make informed decisions about which cards are right for them. My goal is to help people improve their financial literacy and make better financial choices.

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