In determining how many credit cards are too many, it’s important to note that there is no single answer that will apply to everyone. An individual’s ability to handle credit, their employment stability, and their debt to income ratio, or how much of their total income goes toward paying debts, would need further scrutiny before it could be concluded how many credit cards is too many for a single individual.

It should be noted that the more credit cards one has, the greater the potential for increasing debt. Lenders and creditors often view consumers with a high number of cards as a greater risk since the potential for accruing a large debt and not being able to pay it off is an ever-present consideration. For this reason, it is always a good idea for consumers to keep the debt ratio on their cards under 50%. For instance, if a consumer has a limit of $3000 on a single card, it is best to keep the credit used on the card under $1500. If a purchase requires going over that amount, it’s best if another card is used instead. Consistently staying under the 50% limit and paying bills on time helps to convince lenders and creditors that a person is able to comfortably handle credit issuance and is less of an overall credit risk.

Many consumers carry multiple store credit cards as these often come with a discount incentive when applications are approved at the time of a purchase. While this can help save money on a short-term basis, store cards also figure into the debt to income ratio mentioned earlier. Analysts agree that the best way of managing credit cards, particularly store cards, is to pay off balances in full and on time.

Anyone thinking that they have too many cards is advised to carefully select which ones to eliminate and not do so all at one time because it could cause debt ratios to rise. For instance, someone having a combined limit of $10,000 is well below the suggested credit ratio of 50% if the total outstanding balance on all cards is only $3,500. However, if the same person eliminates several cards and their combined limit now drops to $5,000, they are now well over that 50% threshold and are very close to their maximum limit which creditors view as a risk. Creditors look at the length of credit history with each card as well. Therefore, a card that an individual has been able to comfortably manage for the last decade shouldn’t be eliminated in favor of a new card, even if a new one is offering a better interest rate.

Clearly, there is much for a person to consider when figuring out how many credit cards are too many. To appropriately answer this and to appropriately manage credit, it’s best that consumers take the time to become educated on how credit works both for and against an overall rating and then individually assess which approach is best for them.