Any benefit achieved with multiple credit cards ultimately depends on the cardholder and how they manage their finances. Some prefer to live without a credit card to avoid the temptation of spending money they don’t have. Some do well with only one card earning cash back, while others keep two cards serving different purposes: one for everyday expenses and one for special dining out or travel experiences.
Others—say, our entire staff—make a hobby out of maximizing rewards, particularly travel rewards. The veteran experts on our team keep binders full of credit cards and spreadsheets, managing annual fees and monthly payment due dates. There are many routes to take with credit card ownership, but it is ultimately each cardholder’s choice as to which and how many credit cards will suffice.
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How Many Credit Cards Should I Have?
The number of cards you should have depends entirely on your financial situation and spending history. The most important thing to ask is: Can I pay off the full balance on every card each month? Having several cards is a lot of responsibility, and if you doubt your ability to pay each monthly balance, it might be best to avoid collecting multiple cards. In the long run, it is always best to resist the temptation to keep spending.
Live Without a Credit Card
Before applying for a credit card, remember that not owning one at all is a perfectly valid choice. Using only cash or a debit card associated with a checking account works well for the roughly 19% of American adults who don’t own any credit cards. Despite popular belief, you can survive and thrive without a credit card.
When sticking with cash, the only money available is what you have with you or what you’ve saved. For some, that’s an effective form of budget discipline. Adding a debit card to the mix offers convenience and allows online purchases without the temptation to overspend.
The main downside to living without a credit card is the increased difficulty with building a credit score. You’ll need a good score to take out a mortgage or personal loan, and it’s more challenging to get one without a credit card. There are other ways to build credit, like a history of timely payments on student or car loans, so building credit should never be the sole justification for taking on debt. Still, for those without other loans, a credit card paid in full each month is a convenient and relatively simple way to build a stable credit history for larger financial commitments (such as buying a home) down the road.
Another drawback to living without a credit card is missing out on the potential to earn rewards on your spending. Some banks offer debit cards that earn rewards for purchases, but these are few and far between. Debit cards and cash also don’t offer the same purchase and fraud protection credit card companies usually provide.
Get a Single Cash-Back Card
For those applying for a first credit card, we recommend finding a card with no annual fee that pays cash-back rewards on every purchase. For instance, the Discover it® Cash Back card offers 5% cash back on everyday purchases at different places each quarter up to a quarterly maximum when activated. Plus, earn unlimited 1% cash back on all other purchases. This provides a great opportunity to build comfort with how rewards and credit cards work. Even if the credit line is not much to start, it may be enough to cover regular expenses.
Cardholders may also consider a card in the Visa or Mastercard networks, which are accepted by more retailers, especially abroad, than Discover. Top picks include the Citi Double Cash® Card, Chase Freedom Flex®, Chase Freedom Unlimited® and Capital One Quicksilver Cash Rewards Credit Card.
Students applying for a first credit card who don’t have much income or credit history should consider student credit cards that are aimed at this specific profile.
Add Multiple No-Annual-Fee Cards Based on Where You Spend
When adding cards to your wallet, think about where you spend the most with your credit card and educate yourself on which cards offer extra rewards in these places. Keep your eye out for cards with no annual fees.
A good starting point could be to find a credit card that rewards the most for grocery shopping. The Blue Cash Everyday® Card from American Express (Terms apply, see rates & fees) offers 3% cash back at U.S. supermarkets, U.S. online retail purchases, and U.S. gas stations (on up to $6,000 in each category per year in eligible purchases, then 1%), and 1% cash back on other purchases. Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit and at Amazon.com checkout. Another option is to apply for a flat-rate cash-back rewards card with a primary bank.
Canceling a credit card early on while building a credit history could damage your credit score. Reducing credit lines may also increase your credit utilization rate, which can reduce your score.
Depending on your lifestyle, there may be other options for additional cards, an alternative to those offering cash-back rewards. Consider a card that rewards the cardholder with points or miles redeemable for travel expenses. The Bank of America® Travel Rewards credit card and the Discover it® Miles card are two examples. Both are flat-rate cards that allow cardholders to redeem miles as credits to eligible travel expenses (for example, 2,500 miles = $25 travel credit). You may also want to make sure that any travel-based credit card has no foreign transaction fees if you plan to travel internationally.
Specific retailer credit cards may also be convenient. These types of credit cards offer benefits and rewards tied to the respective retailer. Need a new work wardrobe? You may want to look at a Macy’s-branded card. Nordstrom, Home Depot, Best Buy and Amazon also offer co-branded or store credit cards with unique benefits. (Amazon has several cards that offer increased rewards on its brands.) The Target Circle™ Credit Card* offers 5% off on purchases at Target in store or online purchases, plus earn 2% on dining and gas purchases and 1% everywhere else, free shipping for online orders and a $0 annual fee.
Pay Annual Fees for Cards With Better Rewards
Sometimes, specific rewards justify paying an annual credit card fee. Consider loyalty to brands beyond a specific retailer, since most retailer cards don’t require an annual fee.
The key brands here involve travel. If someone stays most often at Marriott hotel properties or flies primarily with American Airlines, a Marriott Bonvoy or an AAdvantage-branded credit card may be just the ticket. Most of these brand-loyal credit cards charge an annual fee. Try to pick the credit card offering the most benefits you’d use in excess of the annual fee.
Consider these travel brand-specific credit cards: The New United℠ Explorer Card*, The World of Hyatt Credit Card* and Atmos™ Rewards Ascent Visa Signature® card*. These cards charge an annual fee, but each represents a specific brand loyalty for travelers. For example, The World of Hyatt Credit Card* offers a free night stay annually at a Category 1 to 4 Hyatt hotel. That $95 annual fee beats room rates that could be well over $100.
With airlines, benefits vary when choosing an airline-specific card and considering which you’ll actually use is important. For example, Alaska Airlines offers convenient flights across the U.S., and it’s easier to achieve a preferred status on Alaska Airlines than with United Airlines, which often flies the same routes. Plus, the Atmos Rewards Ascent card offers an annual companion fare starting at $122 ($99 fare plus taxes and fees from $23) after you spend $6,000 or more on purchases within the prior anniversary year. Add in the $95 annual fee for the Atmos™ Rewards Ascent Visa Signature® card* and cardholders are basically getting an airline ticket of any value for a companion for a little over $200, assuming the card would be used to meet the minimum spending required to earn the annual companion fare. In other words, the perks make the annual fee worthwhile if they’re used.
Some credit cards with annual fees offer enhanced rewards on grocery and gas spending. The Blue Cash Preferred® Card from American Express (Terms apply, see rates & fees) provides top rewards in these categories: 6% cash back at U.S. supermarkets on up to $6,000 per year in eligible purchases (then 1%), 6% cash back on select U.S. streaming subscriptions, 3% cash back at eligible U.S. gas stations and on transit purchases (including taxis/rideshare, parking, tolls, trains, buses and more) and 1% cash back on other purchases. Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit and at Amazon.com checkout.
These high earning rates come with a $0 intro annual fee for the first year, then $95. Compare this to the lower earnings on the $0 annual fee version of the card, the Blue Cash Everyday® Card from American Express.
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Pursue Big Rewards and Welcome Bonuses
Pursuing big rewards and welcome bonuses can sometimes pay off, but it can be a risky game, and not everyone plays wisely. Big rewards often accompany much higher annual fees, and high credit limits can make it tempting to spend more than necessary.
A clear example of a big rewards credit card that could pay off for the right cardholder is the Chase Sapphire Reserve®. For its hefty $795 annual fee, cardholders get a $300 credit toward travel purchases paid for with the card each year, Priority Pass airport lounge access, primary car rental insurance when they pay for their rentals with their card, premium trip insurance, Visa Infinite privileges, IHG One Rewards Platinum Elite status and several hundred dollars more in lifestyle benefits. Another popular card for those playing the high end is American Express Platinum Card® (Terms apply, see rates & fees). Similar to the Chase Sapphire Reserve®, American Express Platinum Card® has a hefty annual fee of $895 and equally weighty benefits.
Credit Card Benefits Vary
Strategizing the unique benefits that each card offers is a key aspect of playing the credit game. When getting ready to apply for a first credit card, do some research first instead of grabbing the first offer advertised. For example, for student credit cards, read about the non-student version of that card that a cardholder can graduate to and compare it to other non-student options out there.
As cardholders start to build a portfolio, they should consider how each card’s benefits can improve their lives in different ways (and increase their credit score). The key for any cardholder is to identify their spending habits and how they can provide an opportunity for greater rewards, a stronger credit line and a lower utilization rate for future loan potential.
How Many Credit Cards Is Too Many?
Don’t overextend by signing up for too many credit cards at once.
Some people happily acquire credit cards solely for welcome bonuses and then cancel the card—often before the annual fee charge arrives after one year. This is known as churning. Aside from the difficulty of keeping track of all this activity, there’s the added drawback of how it can affect your credit score. There’s also the possibility that even if your credit score remains solid, opening too many accounts in a short amount of time could result in your bank denying you a new card.
Before signing up for too many cards, consider what each card can offer (say, no foreign transaction fees, travel rewards or cash back on groceries or gas). Weigh the available bonuses against any card already in your possession before deciding. Don’t get seduced by bonuses—think about what you need.
How Many Credit Cards Should I Have To Build My Credit?
Again, this is a personal decision based on what you think you can handle financially. Having a primary card for everyday purchases is a great way to build credit steadily and consistently over time.
If you’re someone with goals for major investments or purchases in the near future and know you would like to build your credit quickly, it may help to add several cards to the mix—especially those with specific loyalty programs so you can keep track of them in a more organized and categorized fashion. And for those with annual fees you have yet another opportunity to regularly pay off debt on time.
You really only need one credit card to start accumulating credit, but the more you have and the more responsibly you use them, the more opportunities you have to earn points and gradually increase your credit line.
How Many Credit Cards Can I Apply For at Once?
You can apply for as many credit cards as you want at any given time, though it’s not advisable. Not only can it be difficult to track applications and cards, but it also doesn’t look good on a credit report. If you are someone who opens credit cards for welcome bonuses or temporary benefits and then closes them before paying any fees, this pattern is detectable and banks may decide you are ineligible when applying for new cards.
Is It Bad To Apply for Multiple Credit Cards?
Depending on your situation, opening credit card accounts slowly over several years may be wise. Opening multiple card accounts in a short period of time can actually hurt your credit score and jeopardize larger financial goals, like getting a low mortgage rate when buying a house. Keep in mind closing card accounts can also hurt your credit score, so it is best to be selective while building your credit card portfolio.
Find The Best Credit Cards For 2025
No single credit card is the best option for every family, every purchase or every budget. We've picked the best credit cards in a way designed to be the most helpful to the widest variety of readers.
Potential Issues With Having a Lot of Credit Cards
While it is not inherently bad to carry multiple cards, cardholders need to know what their limitations are and what they can handle. It can be difficult to manage payments for multiple credit cards at once. If someone signs up for six cards through different credit card companies, then that’s six different mobile apps or websites in need of regular checking to ensure on-time payments. Each card will also likely have a different payment due date.
If cardholders don’t pay off all monthly balances on time, late fees and spiraling debt aren’t the only problems: A growing credit utilization rate will most likely lead to a decrease in credit score. We all drop the ball sometimes in life, but recovering your credit after dropping the ball on credit card payments can be a long and grueling process.
Bottom Line
Many people carry only one credit card. They have had one card for years, maintain excellent credit and earn substantial cash-back rewards without worrying about which card they’ll pull out and take with them on a shopping trip or vacation.
Some folks successfully pursue big rewards and churn and burn. They continue to open new cards to chase bonuses or to capture the most deluxe travel rewards. This, of course, involves risk—but can also be rewarding.
Whatever future cardholders decide about how many cards to own, follow these three rules:
- Use credit cards whenever possible, making sure a reward is earned.
- Don’t buy anything with a credit card you wouldn’t normally buy with cash.
- Make sure to pay off each credit card balance in full each month.
Best 0% APR Credit Cards Of 2025
To view rates and fees for Blue Cash Everyday® Card from American Express please visit this page.
To view rates and fees for Blue Cash Preferred® Card from American Express please visit this page.
To view rates and fees for American Express Platinum Card® please visit this page.
Frequently Asked Questions (FAQs)
Is it bad to not use a credit card?
There is nothing wrong with choosing to use cash or a debit card as your primary or only method of payment in life. However, being aware of the potential benefits of credit cards is important, especially if you’re considering putting your money toward bigger investments such as homes, cars or businesses.
Is it better to pay off one card or pay down several?
The quicker you can pay off debt, the better for you and your credit score. You might be more efficient if you target one card and work your way through the others one at a time instead of trying to spread out minimum payments across your multiple cards. You can try either the snowball method (focusing extra payments on the smallest debt first, then working upward) or the avalanche method (focusing on the card with the highest interest rate first).
Will two credit cards build faster credit than one?
Yes, assuming you use your cards responsibly. If you do, then having additional cards will generate consistent spending information for the credit bureaus each month, increasing your total credit limit and keeping your credit utilization rate low.
