How many credit cards should I have?
Estimated read time: 3 mins
Some people have several credit cards, while others don’t have any – and both are completely normal. But it can still be hard to know how many you actually need, and what feels manageable for you.
That’s why we’ve put together a handy guide that explains the pros and cons of having several credit cards versus none. It also covers everything you need to know about managing multiple credit lines.
How many credit cards should you have?
There’s no limit on how many credit cards you can have, as long as you’re able to manage them all responsibly.
How many credit cards you have is ultimately up to you and your spending habits. Some people can manage multiple cards and make repayments. But others may struggle to manage repayments and stay within their credit limit on just one card.
What are the advantages of having multiple credit cards?
Some of the advantages of having multiple credit cards include:
Improving your credit score
Having multiple credit cards could help improve your credit score if you maintain a low ‘credit utilisation ratio’ (the percentage of your total available credit you’re using) across them and make the repayments on time. A low percentage of your available credit being used indicates responsible borrowing.
Accessing more credit
You may be able to get higher credit limits, which could offer you more flexibility for making big purchases.
Having backup for emergencies
If one card is lost, stolen or declined, having a second card means you can still access credit.
An easier way to track spending
You can use different cards for specific purposes. For example, one for business expenses and another for personal spending. This can make budgeting easier.
Building credit history
Responsible use of multiple cards shows lenders you’re reliable and builds a more comprehensive credit history. This will make you seem more creditworthy in the long term.
What are the disadvantages of having multiple credit cards?
Some potential disadvantages of having multiple credit cards include:
Risk of overspending – With access to more credit, you may be tempted to overspend, which may lead to debt building up if it’s not managed properly.
Higher interest rates – If balances are not paid in full each month, interest charges can quickly add up – especially on cards with higher APRs.
Annual fees – Some credit cards have annual fees, which can add up if you have multiple cards.
Impact on your credit score – Applying for multiple credit cards in a short period may result in ‘hard’ credit checks, which can temporarily lower your credit score.
If you miss your minimum payments each month, this may also affect your score.
Reduced credit limit on new cards – If lenders see you already have high credit limits across multiple cards, they may offer lower limits on new applications.
Fraud risk – With multiple cards, there’s a higher risk of card details being compromised, so you need to be more vigilant when monitoring transactions.
Does having too many credit cards hurt your credit score?
Having too many credit cards doesn’t necessarily hurt your credit score. It’s all about how you manage them.
If you’re missing minimum monthly repayments, have a high credit utilisation ratio across your cards, or are struggling with repayments and mounting interest, your credit score could be affected.
On the other hand, if you manage multiple cards well and make your payments on time, your credit score can be just as high as someone with only one card.
Why do people have multiple credit cards?
There are several reasons why people have multiple credit cards, including:
Convenience
Using credit cards for specific purposes, like shopping or larger purchases, can help people track their outgoings and better manage their repayments. Because you can see how much is being spent in each area of your life, it could help you manage your budgets.
Taking advantage of benefits
Some credit cards offer rewards, like in-store credits, cashback and Avios points on transactions. Although not for everybody, the rewards offered by credit card companies can make them more attractive. Especially for those people who don’t have to change their spending habits.
Alternative use cases
Some people might want multiple credit cards for different purposes, as not all credit cards do the same thing. Many people have a travel credit card that typically offers cheaper rates for overseas transactions, as well as their day-to-day credit card
Can you have too many credit cards?
Yes, it’s possible to have too many credit cards.
Here are some of the common signs you have too many:
- You’re regularly missing payments
- You have a high credit utilisation ratio
- You find yourself spending more than you can afford
- You have a high debt-to-income percentage
- You’re worried about annual fees
- You have difficulty managing payments
- You can’t live without your cards
Tips for managing multiple credit cards
Keep track of all your cards – It can help to note down each card’s balance, credit limit, interest rate and payment due date. By seeing all the payments you need to make and when, you can avoid missing payments.
Pay on time – Always make at least the minimum payment to avoid late fees and damage to your credit score.
Check your statements regularly – You might want to review each statement monthly to make sure all transactions are accurate.
Avoid applying for too many cards – Multiple applications can negatively affect your credit score. Only apply for new cards if they offer significant benefits.
If you do want to apply for more cards, make sure you only use ‘soft’ eligibility checkers. Vanquis offers free ‘soft’ eligibility checks, so you can see which cards you’re more likely to qualify for by completing a quick and easy form.
Vanquis Credit Cards
Check out our selection of Vanquis credit cards, designed to help you manage unexpected expenses and build your credit.
Easily check your eligibility for all our cards with our free tool, allowing you to explore your options without affecting your credit score.
Find the ideal credit card for you and get the support you need to manage your spending today.
Representative 37.9% APR (variable)
Over 5 million customers have already been accepted for a Vanquis Card
Frequently Asked Questions
How many credit cards does the average UK person have?
In the UK, the average person has 1.7 credit cards, meaning most people have more than one.
Just as your credit score can be affected by having too many cards that aren’t properly managed, it can also be affected by having no cards. This is because lenders have no evidence of credit to go on when they decide to lend.
Should you cancel unused credit cards?
If you’re struggling to manage a credit card, cancelling it may help your finances. But, it’s important to understand how it might impact your credit score.
One of the things lenders look at is your credit history. Not only do they review how well you’re currently handling your repayments, but they look at how long you’ve managed them too.
If you close a credit card you’ve had for a long time, it can impact your score by lowering the average age of your accounts. Generally, the longer an account is open and active, the more beneficial it is for your score.
Closing a credit card can also change your credit utilisation ratio, which can then affect your score.