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How Many Credit Cards Should You Have?

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Created on
April 28, 2023


What’s Inside

You may prefer using credit cards regularly as they’re extremely convenient. And, let's face it, who doesn’t love cashback offers and discounts credit cards offer? That’s why some of us have multiple cards inside our wallets.

But this raises a common doubt: How many credit cards should I have? There’s no straightforward answer to this. You can have 2 or 3 cards if you can easily pay the dues on time. Let's learn more about the factors that'll help you decide the number of credit cards you own.

Credit Score

Your credit score represents your creditworthiness or financial stability. Having a good score is essential for getting approved for loans and mortgages. So, before applying for a credit card, look at your credit rating.

If you have a low score, don’t apply for multiple cards, as banks consider it financial distress or instability. Also, with every application, banks or financial institutions assess your credit history. It’s called a hard enquiry, where credit bureaus might reduce some credit points.

On the contrary, you'll get approved for multiple cards easily if you have a good credit score. You can enjoy multiple card rewards and benefits with a higher credit limit.

Financial Objectives

Your financial objectives will determine your credit card usage. Multiple credit cards will be useful to lower your credit utilisation. It improves your trade score and also impresses lenders. Ensure that utilisation does not cross 30 % of your available credit.

Moreover, if gaining rewards and sign-up bonuses are your requirements, apply for different credit cards for varied perks. Business owners can have multiple business credit cards for handling their expenses.

However, having a single credit card is fine if you have to pay off your debt. It will help you stabilise your finances and avoid excess credit card dues.

Spending Habits

Do you prefer carrying less cash with you while going out? Then using and having more than one credit card might be ideal. If you're a business owner and must purchase large quantities of goods physically, then different cards are important.

Not to forget, there are special offers and cashback with each card you own! Having different card accounts will enhance your overall credit mix. Banks and lenders are impressed with the variety of accounts on your report, which help you get loans faster and more easily.

However, if you tend to overspend and carry card balances from one month to another, use a single credit card. It will help you avoid sinking into debt and facing financial troubles.

What to Do With Several Unused Credit Cards?

If you have multiple credit cards you don't use frequently, close them immediately. Repay all outstanding dues, and send an official email to the associated bank for the closure request. Keep in touch with the bank to see if they have close the cards properly. Remember that unused cards negatively affect your credit history length and utilisation rate.


While focusing on “How many credit cards should you have?” also read the terms and conditions. The documents will tell you about the maximum card limit, utilisation ratio and rewards. If it’s suitable, then go ahead and apply for the card.

All said & done; sometimes you need one credit card to fulfil your needs. The 5% card from Fi & Federal Bank is a reward-heavy, hassle-free credit card. Get rewarded every time you purchase with our card! Your rewards will keep improving as your spending habits change each month. With up to 5X accelerated rewards on spending at any of India's top 21 brands, our card offers an exceptional deal. You can also access premium perks such as Lounge Access, Low Forex Fee, Instant Credit Card Issuance, Customised Reminders, and Spend Insights. As a welcome offer, you'll receive exclusive vouchers from top brands worth ₹5,000! So hop on to the waitlist now!

Frequently Asked Questions

1. Can You Have Two Of The Same Credit Card?

Usually, banks don't provide customers with two of the same credit cards.

2. How Often Should You Apply For A Credit Card?

It is best to apply for a credit card once a year, provided that you need it. Keep a gap of 3 to 6 months between two card applications.


Fi Money is not a bank; it offers banking services through licensed partners and investment services through epiFi Wealth Pvt. Ltd. and its partners. This post is for information only and is not professional financial advice.
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