How Many Credit Cards Do You Really Need?

Over the last decade, the number of credit cards in India has increased exponentially. As a result, credit cards are a huge convenience product for individuals offering several benefits.

Credit cards, as we know, are financial products that facilitate buying goods and services within a pre-approved limit. Using a card is simple as it is widely accepted in offline and online business channels. Getting a new credit card is even easier –from an instant -apply credit card to products promising a basket of credit card offers, consumers are spoilt for choice. But how many cards should one have?

The ideal number of Cards

You may choose to have as many cards as you prefer, but being a financial product, you must fulfil an eligibility criterion. Before concluding, let us find some of the benefits and disadvantages of having multiple cards.


  • Multiple cards increase the user’s credit limit. 
  • It helps the user to maintain a good credit utilisation ratio- an important parameter for the individual’s credit score.
  • More rewards and cash backs
  • Helps in better payment planning by coordinating the credit cycle and payment date of the various cards


  • Multiple cards can be a potential source of sudden debts
  • The user may find tracking and managing card billing cycles and payment dates challenging.
  • Instead of an advantage, more than one card may lead to a poor credit score for the user if not carefully handled.

There is no formula to decide the maximum number of cards one should have. Therefore, while choosing a card, it is best to match your requirements to the benefits a card offers. For example, a card offering travel-related benefits would be ideal if you are a frequent traveller. Similarly, if you happen to be an active e-commerce user, cards with product or site- related advantages will be good for you.

In addition, when going for more than one card, it is better to choose a different card franchisee (Visa, Master card, etc.); this will allow more flexibility in terms of card usage across merchant establishments.

Some financial experts believe one can go for a maximum of two / three cards. Anything more does not offer additional value and, on the contrary, may be difficult to manage and keep track of payment due dates.

Summary: Credit Card Planning – One or More?

There is no specified number (some experts recommend two /three) – your comfort level with your finances will decide; however, you have to watch against overspending constantly.

Effective Planning- Spending on the card/s must be guided by your ability to clear the bill amount in full within the due date; paying minimum dues comes with a high cost. Similarly, a payment default can ruin your finances.

Credit card Score Check– Your credit score is a significant parameter for all your loan needs, including new cards. Therefore, you must keep track of your CIBIL score. In addition, some card companies maintain scores of individual customers, which you may find out from your card provider.

Credit Utilisation Ratio- You should try to maintain the utilisation ratio to around 30 / 40% of the specified limit.

What is the Bottom line?

Intelligent handling of multiple credit cards may work favourably for your finances by utilising the interest-free periods on each card. With cards from different providers, you may also get limited-period offers on purchasing specific items. However, avoiding interest charges and penalties through timely bill payments is the most critical issue. 

    It is easy for you to get a card in India. Most card providers use high-pressure selling and marketing techniques to entice customers and often consume them (customers) with offers and schemes. Therefore, selecting the best one for you is not easy and needs plenty of study and analysis. Finding out from professional experts can help identify the best-suited card for you- for example, Ruloans.  One of India’s top credit financing companies, Ruloans, is in the business of helping customers realise their dreams and objectives. All your financial requirements, from credit cards to business loans, personal loans, and mortgages, can be taken care of by Ruloans. Check here for more details:

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