How many credit cards should you have?

Credit cards can help you build a healthy credit history if you manage them properly. You may also benefit from rewards like cash back or points to be used for travel or other things you enjoy. Given these factors, it’s no surprise that 42% of U.S. consumers are planning to apply for a new credit card within the next year, according to data from the TransUnion Consumer Pulse Study.

So, how many credit cards should you have? As with most personal finance or credit questions, there’s no one answer that applies to everyone. The right number for you depends on your habits, goals and credit history. However, these are some of the considerations to make:

Is it good to have multiple credit cards?

There may be advantages to having more than one credit card. Some people may open up an additional card or cards to transfer a balance using a low or promotional interest rate. Or, you may want to take advantage of cash back or opportunities to earn travel points with different cards.


continue reading »