How many credit cards can you have?

There is no legal limit to how many credit cards you are allowed to have at any one time. It is, ultimately, up to the credit card issuers. Here are a couple facts that might help you on your way to working out how many cards you should have:

For example, someone with a decent cash flow and excellent credit score might want one standard low APR credit card, and one reward-based card. Someone with a poor credit score might want to stick to just one credit builder card until such time as their improved credit score allows them to take advantage of better credit products.

Any benefit achieved with multiple credit cards ultimately depends on the cardholder and how financially responsible the cardholder is. According to Experian, Millennials have an average of 2.5 cards each, while Baby Boomers average 3.5. Some prefer to live without a credit card and avoid the temptation to spend money they don’t have. Some do well with only one card earning cash back, while others keep two cards serving different purposes—one for everyday expenses and one for special dining out or travel experiences.

Having more than one credit card can often be helpful, as there are a number of different types of credit card available. Maximising the various credit deals available can help you save money, as long as you can confidently manage the credit. You can use cards to help you financially in four main ways. Getting the best in class at each of these when needed means you’re in the strongest possible position when it comes to spending and paying the least interest:

0% interest card for spending: you can spread the cost of a purchase without paying any interest charges by using a card that offers 0% interest on purchases

Balance transfer card: by moving your credit card debt to a cheaper deal with a balance transfer credit card, you can significantly reduce the amount of interest you pay on a credit card balance

Reward cards: there are specific credit cards which enable customers to earn cashback, air miles and other rewards on your spending

Overseas card: you can save yourself fees and costs when travelling while using a credit card that is cheaper to use abroad

Any cards you have lying around, unused may well have a negative effect on your credit rating. As such, every now and then it’s worth taking stock of any cards you do have to work out which you should keep and which you should cancel. Any cards you’ve taken out in order to benefit from a set period of 0% on purchases or balance transfers should only really be kept active while the 0% period is on-going. After this, the cards are expensive to use and you gain no real benefit by keeping the accounts open.

The kind of card you’ll want to be keeping for the long term will be a solid, reliable card with a decent credit limit and as low an APR as possible, so that you can keep using credit comfortably into the future without having to worry about huge bills racking up.