How many credit cards should I have?

There’s by no means been a time within the historical past of bank cards the place customers have had as many choices as they’ve immediately. From six-figure welcome offers to bonus points on everyday purchases, issuers are competing to your consideration — and your utility.

Over time, you may end up in a swirling maelstrom of bank cards. We’re no stranger to this — TPG founder Brian Kelly has greater than 20 playing cards. In truth, the typical variety of playing cards on TPG’s editorial workers is 11, whereas Individuals have practically 4 bank cards per individual, in line with Experian.

You may be questioning what number of bank cards you must have in your pockets. Merely put, the reply depends upon a few components which can be distinctive from individual to individual.

“The perfect variety of bank cards to have is the optimum quantity to earn sufficient factors and miles and entry advantages to achieve your journey targets,” Matt Moffitt, TPG contributing editor for bank cards, mentioned.

However how do you determine your ultimate quantity? To start out, the ability to open a credit card relies in your credit score, revenue and employment standing. From there, your common spend, rewards targets and journey habits can assist decide which playing cards — and what number of — are a great match for you.

Whether or not you’re a beginner or proficient in relation to maximizing your bank card utilization to earn rewards like factors and miles, these issues will information you towards various playing cards you are snug carrying in your pockets.

Associated: Best credit cards

What number of bank cards ought to I’ve?

If you wish to earn factors and miles redeemable for journey rewards, TPG recommends sustaining between three and 10 bank cards. We all know 10 playing cards can look like so much, however having this many makes it simpler to mix rewards since many playing cards pair effectively collectively.

For instance, in case you have a Chase Sapphire Preferred® Card, it solely is sensible so as to add the no-annual-fee Chase Freedom Unlimited® and the Ink Business Preferred® Credit Card to your pockets to spherical out the “Chase Trifecta.”

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This is able to maximize the alternatives to earn and redeem your Ultimate Rewards points. We suggest pooling your rewards collectively on an Final Rewards-earning card to obtain optimum worth.

Associated: Best Chase credit cards

One of many essential benefits of utilizing a bank card to cowl purchases is the flexibility to earn rewards. Even in case you’re incomes 1 level per greenback spent in your purchases, that is a greater return than using a debit card that doesn’t have a rewards rate at all.

Simply bear in mind, any rewards that you simply earn will probably be negated in case you miss a fee and owe curiosity to your bank card issuer. So, be sure you spend responsibly.

If you happen to’re good at paying your payments on time and in full, bank cards should not be a scary idea. Nevertheless, it is essential to observe your day-to-day spending habits and decide your high spending classes. When you understand your essential buy classes, it is simpler to determine the fitting variety of playing cards for you.

I will stroll you thru my scenario for instance. As a New Yorker in my early 20s, I allocate most of my price range to rent, groceries, dining, local transit, a gym membership, my cellphone bill and online shopping.

Though the Bilt Mastercard® (see rates and fees) presents a approach for eligible renters to earn as much as 100,000 factors in a calendar 12 months (with no transaction charges) on lease, I reside in a pre-war constructing owned by one household. Since my landlord solely accepts cashier’s checks, incomes factors on lease is out of the query at the moment.

Nonetheless, there are many methods to earn bonus factors on the remainder of my bills once I use the cardboard 5 instances throughout my assertion interval. Some playing cards knock out two or three buy classes at a time.

For somebody like me, the American Express® Gold Card is a superb selection because it presents 4 factors per greenback on eating at eating places worldwide (on as much as $50,000 in purchases per calendar 12 months, then 1 level per greenback) and as much as $25,000 in purchases at U.S. supermarkets per calendar 12 months (then 1 level per greenback).

Since TPG’s March 2025 valuations peg Membership Rewards factors at 2 cents every, that is an 8% return on U.S. grocery store purchases and eating at eating places that take up a substantial portion of my month-to-month price range (on the primary $25,000 and $50,000 spent in a calendar 12 months, respectively, then an estimated 2% return).

To compensate for Amex Gold’s $325 annual charge, I will must spend a minimal of $4,080 mixed on eating and grocery purchases annually (see rates and fees).

Throw within the different advantages of the cardboard — resembling as much as a $120 annual Uber Cash credit for U.S. purchases (Amex Gold have to be added to your Uber account, and you may redeem with any Amex card; as much as $10 Uber Money every month) every calendar 12 months, as much as a $120 annual dining statement credit every calendar 12 months on eligible retailers (as much as $10 every month), as much as $100 annual Resy credit score every calendar 12 months (two $50 credit biannually; on U.S. Resy purchases) and an as much as $84 Dunkin’ credit score every calendar 12 months (as much as $7 in month-to-month assertion credit; on U.S. Dunkin’ purchases) — and this card is the ultimate choice for foodies. Enrollment is required for choose advantages; phrases apply.

Subsequent, as a Hyatt fan, I might choose up the World of Hyatt Credit Card, which earns 2 factors per greenback on native transit and commuting, in addition to gymnasium memberships. With an affordable $95 annual charge, there are many different advantages of proudly owning the cardboard, resembling computerized Discoverist elite status and a free night certificate for Class 1-4 properties in your cardmember anniversary.

With regards to on-line procuring and different miscellaneous purchases that do not match beneath these different classes, the Capital One Venture Rewards Credit Card is good to comb up these remaining rewards. This card earns at the least 2 miles per greenback on all purchases.

Every time I simply need one card to carry with me, the Enterprise Rewards is my go-to since I do know I will at all times snag an awesome return. The cardboard comes with a $95 annual charge, however due to an as much as $120 assertion credit score, I additionally bought my Global Entry application reimbursed with this card.

One other vital consideration is wanting into playing cards that supply cellphone safety, such because the Capital One Venture X Rewards Credit Card, which covers theft and injury ($50 deductible). Plus, in case you pay your month-to-month cellphone invoice together with your Enterprise X, you will additionally earn 2 miles per greenback spent masking this invoice.

This is only one situation of how you would choose up a number of playing cards to assist maximize your on a regular basis purchases. There’s an infinite mixture of playing cards you may open that can even supply nice outcomes relying on what classes you regularly use.

Associated: The best cards for phone protection

It is not essential to hold all 5 forms of bank cards. As a substitute, take a look at TPG’s best credit cards to see what they provide and the way they could match into your incomes, spending and redeeming wants.

“I might say the typical individual might cowl their bases with one airline card, one transferable factors card, one cash-back card with completely different bonus classes for on a regular basis bills and one resort card in the event that they stick with a sequence greater than a pair instances a 12 months,” Eric Rosen, TPG director of journey content material, mentioned. “Then, simply take into account the annual charges you are paying to be sure to’re pulling extra worth from every card’s advantages than it prices to hold annually and voilà.”

Once you stick to at least one to 2 playing cards per class, your life is way easier. Once you begin to have a dozen (or extra) bank cards, you begin to unfold out your rewards reasonably than specializing in a handful of powerhouse playing cards that earn factors and miles. Even when there’s an attractive welcome bonus, suppose correctly about whether or not or not the cardboard matches into your technique earlier than making use of.

Finally, the playing cards you personal will come right down to choice: Do you thoughts having bank cards from completely different issuers, or would you reasonably have your playing cards streamlined with one financial institution? Do you have got a favourite journey model and need to earn factors and miles in that particular loyalty program? Or would you reasonably have a cash-back card for simplicity? These are vital issues that may assist information your choices.

Associated: Why there’s no such thing as the ‘best’ credit card

Do not stress over missed alternatives

When you get snug together with your bank cards and bear in mind the rewards charges hooked up to every card, you will know which card to make use of to your morning espresso, which to make use of for groceries and which to make use of for reserving flights.

However in case you unintentionally use the “improper” card for a purchase order and miss the chance to earn bonus factors, do not fret.

This is a crucial guideline as you add a number of playing cards to your pockets. Whereas it is vital to remain organized, in case you overlook and use a card that does not earn any bonus points on gas, it is not the top of the world to overlook out on 40 further factors. You’ll nonetheless earn factors reasonably than placing the cost on a debit card or paying money and incomes no rewards in any respect.

Associated: The best rewards credit cards for each bonus category

Ideas for maintaining with a number of bank cards

It takes time so as to add playing cards to your pockets, so don’t be concerned if you have not reached the “ultimate” variety of playing cards but. When you do, although, beneath are some ideas for maintaining together with your a number of bank cards.

Create a cell pockets

Whether or not it is Apple Pay, Google Pay, Samsung Pay or one other type of a mobile wallet, you may load a number of playing cards in your telephone to loosen up the load in your pockets. With issuers creating more metal credit cards than ever earlier than, it is good to go away the playing cards at dwelling (although they might look good).

I nonetheless carry three bodily playing cards with me always in case a retailer does not settle for contactless fee. Nevertheless, my digital pockets permits me to rotate and use playing cards that do not get as a lot love.

Obtain the TPG app

The TPG app is a recreation changer for the world of factors, miles and bank cards. That is as a result of you may load all of your playing cards to preview your spending and rewards charges, in addition to see the varied factors and miles you personal from all your favourite journey loyalty manufacturers.

Amongst different options, the Award Explorer permits you to search award journey pricing and a curated dwelling feed hundreds articles associated to your choice and journey type.

Downgrade or cancel your playing cards

If you happen to incrementally add playing cards over time and end up careworn on the variety of playing cards you have got in your rotation — or you might be greatly surprised by the annual charges you pay annually — take into account downgrading or canceling your cards. These choices make sure you’re not caught with the identical playing cards indefinitely, particularly as you develop into extra savvy at incomes money again, miles and different rewards.

The perfect variety of bank cards for a grandparent versus a younger skilled who’s remotely curious about accruing factors and miles for journey will differ drastically. Though my family and friends always gawk when I tell them I have eight credit cards, they’re all part of my award journey technique and long-term targets.

Associated: TPG’s 10 commandments of credit card rewards

For Capital One merchandise listed on this web page, a few of the advantages could also be offered by Visa® or Mastercard® and will differ by product. See the respective Information to Advantages for particulars, as phrases and exclusions apply.

For charges and costs of the Amex Gold, click on here.
For charges and costs of the Bilt Mastercard, click on here.
For rewards and advantages of the Bilt Mastercard, click on here.