(Last Updated: October 9, 2019)
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How many credit cards should I have to improve credit score?

  • @ishu Yes, restricting to 1 card is ok. Don’t fall in trap of holding too many credit cards because they are free or have less fee. Even if you fail to pay bill of any one then it can affect your credit score. So better to limit credit card usage. Also, I think paying through credit card prompts to buy more things. So, cut expenses save money. Just that you get credit shouldn’t mean you spen more and increase your bills.

  • @Ishu I think having one credit card is good enough. I don't want to get burdened with so many credit card bills. I don't think having more credit cards improves credit score. I feel its otherwise. If you have more credit cards with huge spending banks will hesitate issuing you any personal loans. Am I right in saying so?

  • Yes, having one credit card is also fine. I agree to your point that too many credit cards can affect the score negatively. Since, missing any bill payments or delayed payments plus too much utilisation of credit all impact our credit score.
    As I already said, having too many credit cards show credit hungry behaviour. So, it's better to limit to maximum 2 credit cards only. That's my personal opinion.

  • I too agree one card is much more than enough, but why suggesting to have more than 1? Increasing the limit? that itself would be a trap and affect the score badly. Please share your view why you need more than 1 card.

  • @Tarun Hi, I am not suggesting to go for 2 credit cards. I do agree that one good credit card is enough, if you can actually get the perfect one in a single go. There are so many cards out there. You can't be sure which is the perfect one. One might be good at cashback & rewards while other may offer discount on shopping, paying utility bills etc.

    It's just in case, one comes across a better card with extra benefits or some ongoing offer. We can look for a second card also. Like when I applied few years back I got a StanC credit card for free. They have increased my credit limit also. Though, I am cautious to spend much below my limit.

    But, then I felt to grab some more discounts so opted for a second credit card. I could have surrendered the earlier one, I know. But, that's a free card so I don't feel like giving it away.
    There's no harm in continuing a free card that offers decent benefits alongwith a new issued card with additional advantages. What do you think about it?

  • @Anmol I think one credit card is perfect. At the max 2 only. More than that is an additional burden . Don’t fall into the debt trap.

  • @Ishu That's cool. Sure it does not harm if one is matured. Thanks for clarifying. Like most of us looking for offers, I think it's good to have more than one card.

    But if one is immature and having hard time to control the spending, it's better to have one and surrender all others, even freebies. It's important to avoid large debt, which can harm later, lead to fight, depression, these kinds of harm.

  • @Aggarwalshipra I have only one credit card. It’s doing good for me. I don’t feel like having another one now. Will it increase my credit score if I continue with one credit card only?

  • No having one credit card will not increase your credit score but it will provide you an average fluctuation in your credit score. It is better to go for 2 credit cards to increase your credit score and it will also provide you with an extra fund.

  • It is not the number of credit cards you have that improves your credit score. It depends on your usage. You need to take care of cash advances, late payments, paying total amount due before the due, etc. All of this will help in improving your credit score

  • Most financial advisors with any competency whatsoever will caution against improper use of credit cards. However, they do have benefits that can be worthwhile. Provided you have the resources to ensure monthly payoff, just the frequent flyer points or other benefits make their use worthwhile. But they also aid in cashflow and convenience.
    We need good credit card advice to make your shopping smart.

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