I Have 8 Credit Cards – Am I Keeping Too Many or Should I Close Some?

It won’t come as any surprise that more and more Americans these days are carrying credit, as the use of cash has dropped below 20% of purchases. For this reason, it also won’t come as a surprise to learn that the average American has at least four credit cards in their wallet at any given time. 

Should you be someone like this Redditor who posted in r/CreditCards, having more than four credit cards might seem excessive. In their case, they have eight credit cards filling out their wallet, which may feel like a lot, but without at least some of the cards having balances, it’s also a sign of strong financial discipline. 

Still, it begs the question of how many cards are too many? 

How Many Cards Are Too Many? 

In the case of this Redditor, with eight cards, four of them without any balance and not currently in the rotation, it does feel like a lot of cards either way. On the one hand, the Redditor is considering cutting down on the cards they have to simplify their wallet, but they are wondering how many other credit cards other Redditors have. 

The challenge here is that those who visit r/CreditCards are not the typical credit card user. Thankfully, one Redditor did a count in another thread earlier in the year and determined that the average Redditor has at least 10 cards in their possession at any given time. For most people, this is a ridiculous number. Still, for Redditors who like to gamify their earnings by opening cards and taking advantage of bonus offers, it’s probably okay as long as they aren’t all carrying a balance. 

Average Number of Cards

Considering Experian reports that Americans had an average of 3.9 credit cards at the end of 2023, it’s safe to assume this number hasn’t changed significantly in a year. Experian is also well-positioned to know how many credit cards Americans have, as one of the three major credit bureaus. However, credit bureaus also indicate that it’s acceptable to have five or more accounts that can impact your credit, including both credit cards and loans, so having more than four is likely okay, but 10 is just too much. 

Too Many Cards Can Be Risky

Ultimately, there is no question that too many credit cards can be risky. First and foremost, if you have too many cards, you likely have a higher credit utilization ratio, which negatively affects your credit score.

The best scenario is to use 30% or less of your total credit limits to have a good score, while those who lose 10% or less have the highest scores, think 750 or above. What this means is that paying off your balances monthly is the most critical thing you can do. 

Another downside with opening up too many cards is a limited credit history, as credit scoring formulas don’t really worry about having too many cards as much as they do about when the cards were opened. In other words, if you are only opening accounts to take advantage of bonuses, opening too many in a year can and will negatively affect your credit score. This is called a “Thin Credit File,” and it makes your FICO score all the harder to quantify, which can be a real disadvantage with a mortgage or car loans. 

The Best Advice For Now

If someone I know asked me how many credit cards they should have or what the recommended number is, I would say it doesn’t really matter the total number of cards. This means that the Redditor really doesn’t have to cancel any cards that are sitting unused; they just need to be unused with a zero balance. Once they are zeroed out, just stick them in a drawer and forget about them. 

I would recommend someone, not as a financial advisor, which I am not, but as someone who regularly checks their own credit score to make sure that nothing is affecting it, like ID theft. Regularly checking means that you can catch something before it’s too late and has a detrimental and lasting impact on your credit. 

I’d also remind someone that closing cards can have a negative impact on credit scores, at least in the short term, as the total amount of credit available is smaller, which means a credit utilization score can grow smaller as well. 

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