How many credit cards should I have?
There isn’t a defined number of credit cards everyone should have. It depends on your individual financial situation, spending habits, and your ability to manage payments. It's a good idea to have at least one credit card to build credit, but for some, having two to three can be a good way to get more rewards.
Historically, people have held an average of one credit card each. In fact, according to data gathered by the Financial Conduct Authority (FCA), 35.3 million adults held at least one credit card in 2024, which is over 76% of the total adult population.
However many you have, the most important thing is that you manage them responsibly (e.g. pay on time and keep overall utilisation low).
Pros of having multiple credit cards
Better credit utilisation: More credit will be available to you which can lower your utilisation ratio (the total amount you borrow divided by your total credit limit). This, in-turn, can improve your credit score.
Access to different perks: Travel cards, cashback cards, and rewards cards all offer unique benefits.
Backup credit: A spare credit card can be useful if one is lost or stolen.
Cons of having multiple credit cards
Risk of overspending: More credit can mean more temptation to spend.
Harder to manage payments: Multiple due dates can increase the risk of missing a payment, which can be detrimental to your credit score. For some, it may be best to consolidate existing credit cards debt using a balance transfer credit card.
Too many applications can lower your credit score: Each new credit application leaves a mark on your credit file.
If you feel you have too many cards on the go, read our guide on how to cancel a credit card.
How many credit cards is right for you?
Beginners: Start with one credit card to build a solid payment history.
Those looking to maximise rewards: Two to three credit cards with different benefits can be useful (e.g. one for travel, one for cashback)
Debt management: If you struggle with overspending, stick to one card.
For most people, one to three credit cards is a good balance. If you’re considering another credit card, make sure you can manage all of your payments responsibly.
How to handle multiple credit cards responsibly
Automate your payments: The easiest way to avoid late payments is to set up a Direct Debit for every card.
Enable push notifications: Turn on push notifications for your banking apps. These alerts can remind you of an upcoming due date.
Sync billing cycles: If your lender allows it, move your payment due dates to align with your payday. Having all your bills go out at once makes it much easier to see exactly how much 'disposable' income you have left for the month.
Use budgeting tools: Consider using a spend-tracking app to get all your accounts in one view.
Watch your total utilisation ratio: Try to use less than 30% of your total combined credit limit. For example, if you have a £1,000 credit limit on one card and £1,000 on another, borrow less than £600 across the two. Keeping your balances low relative to your limits can suggest to lenders that you are a low-risk borrower.
This blog is for informational purposes only and does not constitute financial advice. Please speak to a qualified financial adviser before making financial decisions.