How many credit cards should you have?
There isn’t a defined number of credit cards for anyone. It depends on your financial situation, spending habits, and your ability to manage payments. Some people benefit from multiple cards, while others prefer keeping things simple with just one.
Pros of having multiple credit cards
Better credit utilisation - more credit will be available to you, lowering your utilisation ratio, which can in-turn improve your credit score.
Access to different perks - travel cards, cashback cards, and rewards cards all offer unique benefits.
Backup credit - a spare credit card can be useful if one is lost or stolen.
Cons of having multiple credit cards
Risk of overspending - more credit means more temptation to spend.
Harder to manage payments - multiple due dates increase the risk of missing a payment.
Too many applications can lower your score - each new credit application leaves a mark on your credit file.
How many credit cards are right for you?
Beginners: Start with 1 credit card to build a solid payment history.
Those looking to maximise rewards: 2-3 credit cards with different benefits can be useful (e.g., one for travel, one for cashback)
Debt management: If you struggle with overspending, stick to one card or consider a low-interest credit card, if available to you.
For most people, 1-3 credit cards is a good balance. If you’re considering another credit card, make sure you can manage all of your payments responsibly.
This blog is for informational purposes only and does not constitute financial advice. Please speak to a qualified financial adviser before making financial decisions.