How many credit cards should you have to build good credit?

You’ve probably heard that keeping a good credit score means paying your bills on time and managing your credit wisely. But what about the number of credit cards you have? Does more equal better, or can it actually hurt your score? Let’s break it down.

What goes into your credit score.

1. Your payment history. Your record of paying on time is the single most important factor. For FICO, it makes up about 65% of your score. VantageScore calls it “extremely influential.” Missed payments can cause major damage, while consistent on-time payments build trust with lenders.
2. Your credit utilization. This measures how much of your available credit you are using. Lenders want to see that you can access credit but do not rely too heavily on it. Having a long, active history of responsible card use is a plus.
3. Your credit diversity. Scoring models also consider the variety of credit you hold such as credit cards, car loans, or mortgages. A healthy mix shows that you can manage different types of credit responsibly.
   
   

The benefits of having several cards.

• Boosting your payment history. Making on-time payments on multiple accounts strengthens your overall history.

• Lowering your utilization.More available credit means you can spread your balances across different cards, keeping your usage percentage lower. Scoring models like FICO reward that.

If you are working to build or improve your credit, our Low Rate Mastercard® is a smart place to start. With 0% interest for 6 months, no balance transfer fees, and no cash advance fees, it is designed to help you move forward confidently.

Is there a "right" number of cards?

There is no magic number, but research gives us some insight. Consumers with excellent credit, meaning FICO scores above 800, typically have:

• Four to five opencredit cards on average
• 6% credit utilizationrate on their cards
• Lower credit card balancesthan those with a lower FICO score

It is perfectly fine to hold several cards, but opening a large number of new ones at the same time probably will not move you toward excellent credit.

When to hold off on new cards.

Sometimes, applying for new cards can do more harm than good, especially if you are planning to take out a major loan soon such as a mortgage or auto loan. Here is why:

• Hard inquiries. Every application puts a mark on your report, and too many can bring your score down.
• Lower average age of credit. New accounts reduce the average age of your credit history, which can hurt your score.
• Less variety. Opening several revolving credit cards without other loan types can reduce your credit mix.
• Too much open credit. Certain scoring models, like VantageScore, may view this negatively.

There is no one-size-fits-all answer to how many credit cards you should have. What matters most is how you manage them, by making payments on time, keeping balances low, and only opening new accounts when it makes sense for your financial goals.

Keeping your credit score strong today can set you up for better financial opportunities tomorrow.

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