How many credit cards should I have?
There’s no hard rule on how many credit cards you should have. Credit cards are ultimately financial tools, so as long as each card you own fulfills a purpose and you’re paying them off without incurring interest, you’re in good shape. But there are a few things to keep in mind when you’re considering opening a new account or closing an old one.
- Card applications can negatively affect your score. Each credit card application will result in a hard pull on your credit, which can temporarily ding your credit score. If you apply for too many credit cards too quickly, this can negatively impact your score.
- Closing old accounts can negatively affect your score. Your total available credit and credit history plays a large role in your credit score. Closing an old account can affect both of these factors by reducing your history and potentially increasing your credit utilization ratio, both of which can negatively affect your score.