While there's no "right" number of credit cards to have, we generally recommend starting with 1 or 2 cards so you can get a handle on managing multiple accounts and build up a solid credit score.
As your credit score and financial situation change, you may want to revisit the number of cards you have. To help you decide if you have the right number of credit cards, read through our considerations and compare them to your spending needs.
Key Takeaways
- Multiple credit cards can help you build your credit history, earn more rewards, and enjoy more perks.
- Multiple credit cards can also damage your credit score, put you in debt, and disqualify you from future credit products.
- To build a well-rounded wallet, choose new cards based on specific purposes and your existing spending habits.
- Start with a basic credit card, add a premium card, and then add rewards cards tailored to your favourite purchases.
Never miss an amazing deal again + get our bonus 250+ page eBook for FREE. Join 50,000 other Canadians who receive our weekly newsletter – learn more.
How many credit cards should I have?
The number of credit cards you should have depends on your income, spending habits, and budgeting skills. However, if you're new to credit cards, you should start with a single credit card to help build your credit score and get used to managing credit card payments.
Once you've had a credit card for a while, you can reevaluate your needs and decide if you want to add another card to your mix.
How many credit cards is too many?
It's certainly possible to have too many credit cards. You'll know you have more cards than you need if you find yourself stressed out with keeping track of which cards to use for what and you're falling behind on your credit card payments. After all, more credit cards mean more minimum monthly payments.
You may have heard of credit card churning – where you open credit cards to take advantage of substantial welcome bonuses. But it's easy to open too many credit cards with this strategy and end up in substantial debt. It's also much easier to forget to make all your monthly payments when you have a large number of cards.
How many credit cards does the average Canadian have?
According to the Canadian Bankers Association (CBA), there are over 100 million credit cards in circulation in Canada, but it's a little harder to pinpoint exactly how many cards Canadians have. As of a few years ago, the CBA estimated that to mean an average of 2.4 cards per person.
Take that number with caution – after all, it's an estimate. There are people who carry a wallet full of credit cards, while many don't have a credit card at all.
Benefits of having multiple credit cards
Having multiple credit cards can help improve your credit score quickly. And a good credit score can help you qualify for better insurance rates, employment, housing, and loans with lower interest rates.
Multiple credit cards can:
- Build credit faster: The more credit cards you pay off, the more positive data you have to bolster your payment history and credit rating.
- Improve your credit mix: Credit bureaus like to see timely payments, but they also want to know you can handle multiple types of credit, including credit cards, loans, and mortgages.
- Improve your credit utilization ratio: Spreading expenses across multiple cards – and keeping your balance below 30% of the limit of each card – is better for your credit score.
- Maximize payment acceptance: While Mastercard remains the only card accepted at Costco, nothing beats Visa when it comes to shopping internationally. As for the U.S., American Express is accepted very broadly.
- Maximize rewards: Since most credit cards offer only 1 or 2 high-rewards categories, using multiple cards can help you maximize your purchases across categories.
- Provide more perks and benefits: Airport lounge access, discounts, flexible financing, insurance coverage, roadside assistance, and more – extra goodies make it tempting to carry more than one card.
Downsides of multiple credit cards
Sure, the benefits of having several credit cards seem fantastic. But before you submit that new credit card application, consider that having multiple cards can:
- Make it harder to keep track of each card's terms and conditions: Every card has its own fees, interest charges, payment due dates, grace periods, exclusions, and more to manage. If you don't like tracking your finances, you probably don't want more than 1 or 2 cards.
- Damage your credit score with hard credit checks: Unless you're pre-approved, applying for a new credit card usually incurs a hard credit check that temporarily lowers your credit score. Multiple applications mean multiple credit checks.
- Damage your credit score with missed payments: Outstanding balances damage your credit score after 30 days. If you can't pay it all, at least pay the minimum.
- Increase your debt with interest fees: The biggest reasons Canadians fall into credit card debt are interest fees. It's crucial to stay on top of your debt by paying off your credit cards on time.
- Make you more vulnerable to fraud and identity theft: You're less likely to spot fraudulent activity while managing multiple cards. Review each credit card statement carefully and use a different PIN or password for each card.
- Tempt you to spend more: Increased spending limits can trigger an impulse to spend more. Make a budget and stick to it, even after being approved for a new card.
Steps to building your credit card portfolio
The key to successful credit card management is to do your research and apply with purpose. For example, if you add multiple rewards credit cards, make sure their rewards categories don't overlap.
Here's a 3-step process to building your credit history, maximizing rewards, and avoiding risks along the way:
1. Start with the basics
Start with a cash back credit card to help build your credit history while earning rewards. Here are a few no-fee credit cards:
| Recommended Card | Top Earning Categories | Genius Rating |
|---|---|---|
| Tangerine Money-Back World Mastercard | * 2% cash back on purchases in up to 3 Money-Back Categories * 0.5% cash back on all other purchases | 4.4 |
| SimplyCash Card from American Express | * 2% cash back on gas * 2% cash back on groceries (up to $300 cash back annually) * 1.25% cash back on all other purchases | 4.5 |
| Rogers Red Mastercard | * Earn 2% cash back on all eligible non-U.S. dollar purchases if you have 1 qualifying service with Rogers, Fido, Comwave, or Shaw * Earn 2% cash back on all eligible purchases made in U.S. dollars * Otherwise, earn 1% cash back on eligible non-U.S. dollar purchases | 3.4 |
2. Add a premium card once you qualify
With high annual fees and minimum income requirements, the eligibility requirements for premium credit cards are a turn-off for many. But if you have a sure grip on your finances and want more valuable benefits, a premium card is the next step.
First, use your average monthly spending to calculate whether the rewards you'll earn will offset the annual fees. Next, consider replacing a basic card with one of the following:
| Recommended Card | Annual Fee | Income Requirements | Genius Rating |
|---|---|---|---|
| The Platinum Card | $799 | None | 4.2 |
| American Express Cobalt Card | $191.88 | None | 5.0 |
| BMO CashBack World Elite Mastercard | $120 | $80,000 personal or $150,000 household | 5.0 |
3. Aim for rewards
Identify which spending categories and purchases eat up most of your money – and give you the most enjoyment. If you're drawing a blank, the creditcardGenius quiz has a scientifically calculated recommendation for every rewards category.
| Category | Recommended Card | Rewards | Genius Rating |
|---|---|---|---|
| * Best gas credit card * Best grocery credit card * Best restaurant credit card | American Express Cobalt Card | * 5 points per $1 spent on eligible groceries and restaurants (up to $2,500 spent per month) * 3 points per $1 spent on eligible streaming services * 2 points per $1 spent on eligible gas, transit, and ride share purchases * 1 point per $1 spent on foreign currency purchases * 1 point per $1 spent on all other purchases | 5.0 |
| Best store credit card | MBNA Rewards World Elite Mastercard | * 5 points for every $1 spent on restaurants, groceries, and select recurring bills (up to $50,000 spent annually per category) * 1 point per $1 spent on all other purchases | 5.0 |
| Best airline credit card | TD Aeroplan Visa Infinite Privilege Card | * 5 points per $1 spent on eligible groceries and restaurants (up to $2,500 spent per month) * 3 points per $1 spent on eligible streaming services * 2 points per $1 spent on eligible gas, transit, and ride share purchases * 1 point per $1 spent on foreign currency purchases * 1 point per $1 spent on all other purchases | 4.3 |
Can you apply for multiple credit cards at once?
There's no rule or law saying you can't apply for several credit cards at a time, but we strongly advise against it. Each application results in a hard credit check, which temporarily drops your credit score.
Credit card issuers can also see who else has checked your credit rating and may reject your application if it seems like you're trying to take on too much debt. So, you might be damaging your chances of approval by applying for multiple cards.
Instead, wait at least 3 to 6 months between applications. It gives your credit score time to recover, reduces your chances of rejection, and lets you evaluate your finances before proceeding.
FAQ
How many credit cards should I have?
The exact number of credit cards you should have depends on your personal finances. If you're experienced with managing credit cards and want to add additional cards for rewards, perks, or travel benefits, you're probably able to handle more credit cards than someone who's never had a credit card before.
How many credit cards should I have at 22?
There's no set number of credit cards you should have at age 22. You might already have had a card for a few years and feel comfortable adding another. On the other hand, if you've never had a credit card, it's better to stick with just 1 card until you get used to managing the account and your credit.
How many credit cards should I have as a student?
Again, as a student, the number of credit cards you should have is unique to you. You might find that with the right student credit card, you really only need 1 credit card for the features and rewards you're looking for.
How many credit cards should I have for good credit?
Your credit score doesn't really care how many credit cards you have. Credit monitoring bureaus want to see that you can responsibly pay back the credit cards you do have, even if that's just 1. The length of the account history and credit utilization ratio are also important for building a good score.
What is the 2/3/4 rule for credit cards?
The 2/3/4 rule is attributed to Bank of America. This American bank suggests that you should only apply for 2 new credit cards within 30 days, 3 cards within 12 months, or 4 cards within 24 months to prevent damaging your credit score from credit checks.
Is it bad to have multiple credit cards?
It's not necessarily bad to have multiple credit cards if you're using them responsibly. Avoid maxing out any of the credit cards and ensure you're making the minimum payment on each card every month. Ideally, you should keep each credit card's balance paid off.
creditcardGenius is the only tool that compares 126+ features of 251 Canadian credit cards using math-based ratings and rankings that respond to your needs, instantly. Take our quiz and see which of Canada's 251 cards is for you.
GC: 
Comments
Leave a comment
Required fields are marked with *. Your email address will not be published.
Showing 5 comments