How Many Credit Cards Are Too Many?

The answer to “how many credit cards are too many?” will vary from person to person. For some the answer will be one; others may think that you can never have too many credit cards. However, if you are going to use credit cards there are good reasons to avoid having a large number of them. My answer to this question is between one and three.

You may want to have one major credit card: Mastercard if you are in Europe, JCB if you are in Asia, and American Express or Visa if you are in North America. Most of these cards can be used just about anywhere, and they have benefits associated with them that can be a bonus as well. (Such as extending warranties, rewards, etc.)

If you shop at one particular store a lot, you may want to get a store credit card as well. This can give you percent-off discounts, gift certificates, and advance notice of sales, since you will be considered a special customer. However, be sure that you only get a store card for the store you shop at the most. Opening store credit cards willy-nilly (typically for the opening discount) can wreak havoc on your credit. Your credit will take a ding for each card you open, and your available credit will increase, which may look bad if you go to make a major purchase like a home. You may also forget about the cards, which can be bad if they are stolen.

A few people may want to consider adding a gas card to their wallet. Gas cards are typically good if you do a lot of driving that is reimbursed by the company you work for. This makes submitting your claim easy, since all of the charges are on one sheet of paper.

Whatever you decide, be sure to use credit cards responsibly. Always pay off your balance in full each month to avoid interest charges, and keep copies of the front & back of the cards in case they are stolen.