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Can you have too many cards?

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Last Verified: March 22, 2023

We have seen many consumers with 20 cards and scores over 800. It is a common misconception that having too many credit-card accounts is a bad idea. It is very rare to be denied credit due to too many cards being opened. Having multiple accounts can provide ample benefits and options, as long as the process is approached slowly.

The main reason to have so many cards is for the rewards. Opening up new cards usually comes with large bonuses. Further, different cards have different rewards structures. If done right, a portfolio of 10 cards may make sense. It’s also advantageous as it allows you not to rely on one card in case you are shut down, interest rate raises or other issues.

It is crucial to note that the accumulation of several cards should be done in moderation. Applying for too many cards within a few month period can impact credit scores and result in some denials. However, by accumulating new holdings in a strategic and deliberate manner, credit scores remain intact and creditors are less likely to engage in unfavorable practices.

It is essential to emphasize that the accumulation of credit-card accounts is not the cause of financial instability. Rather, the primary issue is carrying too much credit card debt. Therefore, having a diverse range of cards with no balances, but plenty of usage, is not a cause for concern.

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