Is It Possible to Have Too Many Credit Cards in Your Wallet?

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Many people use credit cards for everyday purchases. But is there such a thing as having too many credit cards in your wallet? For some, having multiple cards can be a bad money move. But for others, having more than one card is smart.

Let's discuss this idea further to help you decide whether a one-card or multi-card strategy is the best money move for you.

Avoid multiple cards if you're spending more than you can afford

If you need to improve your money manageable skills, having multiple credit cards may be risky. You may end up overspending beyond your means, which could lead to an expensive credit card debt problem.

If you're new to using credit cards or are working to learn how to manage your spending and payment habits, it can be advantageous to stick with one credit card.

Multiple cards can be a challenge if you're forgetful or disorganized

You need to always pay your credit card bills on time every month. If you pay your bills late, you'll be charged expensive late fees. But missed and late payments can also negatively impact your credit report and credit score.

If you're forgetful and disorganized, and struggle to remember to pay your bills, you may have too many credit cards in your wallet. Sticking with one card may be best. Once you develop new habits and get more organized, you can consider getting another card.

Having several credit cards can help you maximize your rewards

For those who are using their credit cards responsibly and only charging what they can afford, earning rewards on everyday purchases can be a win. Not all rewards credit cards function the same way and if you want to maximize your rewards, having more than one card can be wise.

Many cards offer bonus rewards in select spending categories. Having more than one card with different bonus rewards opportunities is a great way to boost the rewards you earn. Consider your typical spending habits before choosing a rewards or cash back credit card.

Just make sure you're managing each credit card account well. If you have too many cards in your wallet, it can quickly get confusing. You don't want to fall behind on payments. You should also take care to use your rewards once you earn them, so you don't forget about them.

Multiple credit cards can result in access to more card benefits

Many rewards credit cards include useful perks, like purchase protection or travel insurance. Since each card has varying benefits, you may get value from having several cards in your wallet. Ensure you're using the perks available -- especially if you're paying an annual fee to use the card.

It's not a bad idea to review the features and benefits of each card in your wallet annually to make sure it still provides value and that none of the perks have been eliminated or changed. This way, you can make an informed decision about whether to keep the card.

Everyone has unique needs

As a reminder, everyone has different needs and goals. What might work for one person may not work well for you. If you're using multiple credit cards and you're not suffering negative consequences, that's great news. Keep doing what you're doing.

But if you're struggling with managing one or more credit cards or are in a tough spot financially and are considering opening another credit card, you may want to rethink your choice. Don't rush to make a decision that will put your financial health at risk. You can always reassess your situation and needs in the future when your finances improve.

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