In the U.S., only about half of people have two or more credit cards, and a measly 13% of people have five credit cards or more. I'm part of that statistic. Me, with my 20-odd cards -- spread across three wallets -- from roughly a dozen issuers, across all four card networks.
Look, I know -- it sounds like a lot. It is a lot of cards. But it's absolutely true. And you know what else? My credit score looks great. (Well, it looked better for the new mortgage loan, but I digress.)
Yes, you can have 20 cards (and more!)
There is no legal limit to how many credit cards a person can obtain. You can have as many credit lines as the banks and credit unions are willing to give you.
And as long as you use those cards responsibly -- by paying on time every month and keeping your balances low -- credit card issuers are willing to give you quite a few.
Most issuers have in-house caps
All this isn't to say that you can have unlimited credit. Each financial institution has its own ceiling on how much money it is willing to lend you. (Because that's what credit cards are: lines of credit, i.e. debt.)
This cap will generally apply to your total credit lines across all of your cards with that issuer. For example, if Chase is only willing to give you $10,000 in total credit, and you already have two Chase cards with $5,000 limits, you'll likely be rejected for a third card.
Similarly, most issuers have caps on how many credit lines you can have with them at one time. American Express, for instance, is said to cap your total number of credit cards to five. (Charge cards are reportedly exempt from this limit.)
The downside is that issuers don't generally tell you about these limits. So you may not realize you're at your credit line or card cap until you bump your head on it (metaphorically).
That many cards is hard to keep organized
For the folks who wonder how someone keeps track of 20-plus cards -- well, let me tell you, it takes work. Personally, I couldn't do it without my spreadsheets.
It helps that a lot of my cards don't get much regular use. More than half of my collection is made up of travel rewards cards, including cobranded hotel and airline cards. These typically only come out when I'm planning travel that includes the associated brand.
I also diligently log into all of my online banking accounts at least once a week to check due dates, scan transactions for signs of fraud, and check offer portals for useful deals. My mobile banking apps make this super easy to do while I'm cooking dinner or waiting on a persistently late family member.
Pay on time, or the credit score gets it
If you're the type of person who forgets due dates, then the multi-card lifestyle probably isn't for you. Even one missed payment can do bad things to your credit score, and missing multiple payments while juggling too many cards could lead to catastrophic credit damage.
One thing that can help the on-time-challenged is to set up autopay. This automatically makes at least your minimum payment (you can set the payment amount) before your due date so you won't have to worry about late fees or credit damage.
The other important thing is to never charge more than you can afford to repay quickly. Ideally, you want to pay off your balances in full every month. The only exception is when you have an active 0% APR offer. In that case, make at least your minimum payment every month, but be sure to pay the full balance off before the offer expires.
They spawn like rabbits
If you're thinking of starting the credit card rewards game by picking up a second, third, or even 19th card, be warned: These things multiply. One day you're just grabbing an airline card to make your next trip cheaper. The next thing you know, you have three wallets and a career writing about credit card rewards.
It's a slippery slope, folks. Tread carefully.
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FAQs
If you're a frequent traveler and want to maximize travel credit cards like it's your part-time job, then having an array of credit cards with different perks could even be incredibly lucrative. Some power users may have 20, 30 or more cards in their household. It's fine to keep things simple with just a few cards.
Is it okay to have 20 credit cards? ›
Yes, you can have 20 cards (and more!)
You can have as many credit lines as the banks and credit unions are willing to give you. And as long as you use those cards responsibly -- by paying on time every month and keeping your balances low -- credit card issuers are willing to give you quite a few.
How many credit cards is it good to have at one time? ›
It's generally recommended that you have two to three credit card accounts at a time, in addition to other types of credit. Remember that your total available credit and your debt to credit ratio can impact your credit scores. If you have more than three credit cards, it may be hard to keep track of monthly payments.
Is 25 credit cards too many? ›
The Impact on Your Credit Score
So, while there is no absolute number that is considered too many, it's best to only apply for and carry the cards that you need and can justify using based on your credit score, ability to pay balances, and rewards aspirations.
What is the 20% credit card rule? ›
The 20/10 rule of thumb tells you to keep your debts below 20% of your annual take-home pay and below 10% of your monthly take-home pay. The purpose of this guideline is to keep debts at a manageable level and build financial stability.
Is it OK to have 30 credit cards? ›
Some power users may have 20, 30 or more cards in their household. It's fine to keep things simple with just a few cards. However, having a thin credit file can make it difficult for lenders to determine what kind of borrower you are. Lenders typically view this as a risk.
Is it bad to have a lot of credit cards with zero balance? ›
However, multiple accounts may be difficult to track, resulting in missed payments that lower your credit score. You must decide what you can manage and what will make you appear most desirable. Having too many cards with a zero balance will not improve your credit score. In fact, it can actually hurt it.
Is 21 credit cards too many? ›
How many credit cards is too many or too few? Credit scoring formulas don't punish you for having too many credit accounts, but you can have too few. Credit bureaus suggest that five or more accounts — which can be a mix of cards and loans — is a reasonable number to build toward over time.
How many credit cards does the average person hold? ›
How many credit cards does the average person have? According to the latest figures from Experian, the average American has 3.84 credit cards with an average credit limit of $30,365.
Does cancelling a credit card hurt your credit? ›
Before you close a credit card account, consider the following: Closing a credit card could lower the amount of overall credit you have versus the amount of credit you're using (your debt to credit utilization ratio), which could impact your credit scores.
This means you should take care not to spend more than 30% of your available credit at any given time. For instance, let's say you had a $5,000 monthly credit limit on your credit card. According to the 30% rule, you'd want to be sure you didn't spend more than $1,500 per month, or 30%.
What is the 5 25 rule credit card? ›
The 5/24 rule is an unofficial policy that dictates that Chase won't approve you for its cards if you've opened five or more personal credit card accounts from any issuer in the last 24 months. Put simply, the number of cards you've opened in the previous two years will affect your approval odds with Chase.
Is $25,000 a high credit card limit? ›
Chip Lupo, Credit Card Writer
Yes, a $25,000 credit limit is good, as it is above the national average.
What is the 2 3 4 rule for credit cards? ›
2/3/4 Rule
You can be approved for up to two new credit cards every rolling two-month period. You can be approved for up to three new credit cards every rolling 12-month period. You can be approved for up to four new credit cards every rolling 24-month period.
Is $20000 a good credit card limit? ›
Yes, $20,000 is a high credit card limit. Generally, a high credit card limit is considered to be $5,000 or more, and you will likely need good or excellent credit, along with a solid income, to get a limit of $20,000 or higher.
What is the golden rule of credit card use? ›
The golden rule of credit card use is to pay your balances in full each month.
Is using 20 of your credit limit good? ›
So what is credit utilization ratio? It's the money you owe on your credit cards, divided by your total credit card limit. A good number to aim for is 30% or lower. But the lower the better.
Is 20 credit usage good? ›
What is a good credit utilization ratio? A low utilization ratio is best, which is why keeping it below 30% is ideal. If you routinely use a credit card with a $1,000 limit, you should aim to charge at most $300 per month, paying it off in full at the end of each billing cycle.
What is the 20 10 rule for credit cards? ›
The 20/10 rule follows the logic that no more than 20% of your annual net income should be spent on consumer debt and no more than 10% of your monthly net income should be used to pay debt repayments.
