How Many Credit Cards Should I Have?

Whether you’re a credit card pro or are completely new to the points game, there is often one question that crosses everyone’s mind:

How many credit cards should I have?

Of course, there is no one-size-fits-all answer to this question, and the number of cards that are right for you will depend on your individual financial situation and spending habits. However, there are some key questions and guiding principles that can help you figure out how many cards are right for you. We’re going to list some questions that you should ask yourself when figuring out how many cards to get. As you go through these, hopefully, it becomes clear how many cards you can realistically manage while still getting value out of each one!

Let’s jump into the questions:

1. How many cards can you manage?

Firstly, the most important thing is to consider just how many cards you can honestly manage. With every new card comes a new account to keep track of, more spending to monitor, and often, new credit card portals to navigate. For those new to credit cards, we recommend sticking to cards within one bank (e.g., Chase, American Express, etc.) until you feel more comfortable keeping track of multiple accounts. If you feel comfortable frequently checking and keeping track of different cards, then that shouldn’t limit you; however, you should get new cards slowly to allow yourself to build up the familiarity! The jump between tracking accounts within one banking system and tracking accounts beyond banks is pretty substantial, so we recommend using a tracker that can monitor all your accounts simultaneously, such as Mint by Intuit (which is what I use).

Something else that people don’t frequently consider is that the more credit cards you have, the harder you’re going to have to work in order to actually use the benefits that each card offers. When you have 1-2 cards, it’s pretty easy to memorize the spending bonuses (e.g., 3% back on certain categories) and card benefits. However, when you get 3+ cards, it can become tricky to always know which card to use and when. I personally use the CardPointers app (which is free) which helps me track which card to use.

2. How much are you spending on annual fees?

Another important item to consider is the annual fees you are paying with your current set-up and any future cards you are planning to get. One trap that people often fall into is gathering too many cards with high annual fees, and as a result, not getting back enough value to make the annual fees worth it. When getting a card, you should make sure that you are constantly getting returns on any cards with annual fees, and that new cards will complement the value you are getting instead of detracting from it. A shiny sign-up bonus may seem attractive, but unless you are a hardcore churner, you may be spending more than you’re getting back.

3. What are your current spending rewards?

The third thing to look at is your reward multipliers (i.e., how much cash-back or points your cards give you) to make sure you have all the major categories covered. For those who don’t know, a general rule of thumb is to make sure you have at least 1.5% back/1.5x points minimum on each of the following travels:

1. Travel (particularly flights)

2. Gas

3. Groceries

4. Dining/Restaurants

5. Misc. (all other spending)

If you get less than 1.5%/1.5x points on any of these major categories, you should consider getting another card to round out how much value you are getting from your spending. However, as we discussed in #2, make sure the return you are getting is less than any additional annual fees.

4. When did you get your last card?

One final thing to consider is how frequently you are/have been getting new cards. Some banks have limits on how many cards you can get in a certain time period; if you are planning to get these cards, it’s important to consider how many cards you have and the order in which you get new cards. For instance, you may have heard about Chase’s 5/24 rule, where you can only have been approved for 5 cards in the past 24 months to be eligible for a new Chase card. If you’re interested in a new Chase card, make sure to plan your new applications to start with these cards to give you the best chance of getting approved!

Summary

Ultimately, the decision of how many credit cards to have is a personal one. While there is no right or wrong answer, the average person (who doesn’t want to commit to constant spending planning and tracking) will get the most value from 3 to 4 well-planned cards. One of the most common card setups is a trifecta of cards that all work synergetically. It's important to consider all these points and choose the number of cards that is right for you and your financial situation! If you’re interested in getting a new card, make sure to check out our recommendations for the best airline cards and the best hotel cards!