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Figuring out how many credit cards belong in your purse or wallet can give you a headache. But, as new offers keep popping up, it can be tempting to take advantage of them all. Not to mention, there are cards for many different things. For example, there’s a card to target your favorite hotel chain, one to maximize airline miles, one that earns you points when spending at NFL games, and even one that offers you cashback on your grocery purchases.
With this variety of credit cards, filling your wallet with plastic can become too easy. So, how many credit cards should you have?
According to Experian’s “Credit Card Debt in 2021” report, as of the third quarter, the average U.S. citizen has 3.84 credit cards and an average outstanding balance of $5,221. Overall, the Federal Reserve’s October 2022 G19 report showed that total outstanding revolving credit stood at $1,171.2 billion.
Here are some advantages of having multiple credit cards:
Some advantages of having fewer cards include:
So, how many cards should you own? That will depend on your specific situation. It may be best to start with one credit card with a lower credit line and work your way up to a few cards once you build up credit. Some people believe you can never have too many credit cards.
Depending on the individual, this can be true somewhat. Each credit card you have in good standing will increase your credit score and positively impact your credit history.
However, some people can have too many cards. For example, if you tend to overspend with multiple cards, struggle to manage your accounts, or incur much debt, numerous cards are too many.