How many credit cards should I have?

Is your wallet fat with credit cards and your mailbox stuffed with statements? If you think having so much credit will help you build a good credit rating, think again. Having more than 2 or 3 credit cards may actually hurt your credit rating, according to Maxine Sweet, vice-president for Consumer Education at Experian, one of the credit bureaus that provides credit reports on consumers to businesses.

Sweet says that having a minimal number of cards but using them in a steady but judicious manner is all that’s needed to build a good credit rating. Having too many cards may result in denial of credit if you already have a big credit debt. Even if you don’t, the amount of available credit may cause potential creditors to turn you down. So trim back to two or three cards at the most.

Source: Odious task #4 -juggling credit cards. (1998, January). Forecast 98, 92.

Written by:
Sandra McKinnon, Consumer & Family Economics Specialist, University of Missouri-Columbia, University Outreach and Extension

Cynthia E. Crawford, Ph.D., Consumer & Family Economics Specialist, University of Missouri-Columbia, University Outreach & Extension

Last update: Tuesday, July 05, 2005