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Editor’s Note: This story originally appeared on The Penny Hoarder.
After a big spending spree, you might ask yourself, “Do I have too many credit cards?”
Like most things, the answer isn’t cut and dried. And although having multiple credit cards isn’t necessarily bad, there is such a thing as having too many, especially depending on how you’re using them and which ones you have.
We spoke to several financial experts to find out just how many credit cards you should keep in your wallet, which ones, and how to manage them for the best results. Here’s what they had to say.
How Many Credit Cards Is Too Many?
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Ever hear the expression “too much of a good thing?” Well, the same can be said for the number of credit cards in your wallet.
Brian Dechesare, founder and CEO of Breaking Into Wall Street explains: “In 2020 the average number of credit cards per adult in America was three, according to an Experian report. While it’s not a bad thing in and of itself to have multiple credit cards, it’s certainly possible to have too many — and it all depends on how well you can manage your credit.”
Although some people might be able to comfortably juggle payments on multiple credit cards (while also making good use of those cash-back and rewards deals), others might be struggling to meet their minimum payments.
Founder and CEO Nate Tsang of WallStreetZen says that most banks expect people to have anywhere from three to five credit cards. “At that amount you can reasonably capitalize on your expenses through perks and rewards points without losing track of what you spend,” he explains.
Rather than wondering how many credit cards is too many, ask yourself how well you’re managing them.
“If you struggle to comfortably pay off one line of credit, then two is definitely too many for you,” says Dechesare. “In general, anything over four is potentially excessive, and anything over six is more than likely too many, even for the most disciplined and organized spender.”
The bottom line isn’t so much how many credit cards you have. It’s more about ensuring you use your credit cards responsibly. One of the best measurements of this? Whether or not you’re paying off the balance every month.
The Risk of Too Many Credit Cards
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The biggest piece of advice we heard from our experts was this: No matter how many cards you have, paying them off in full (every …….
Source: https://www.moneytalksnews.com/slideshows/can-you-have-too-many-credit-cards-in-your-wallet/