Is 3 credit cards too many? How many should I have - Bright (2024)

FAQs

Is 3 credit cards too many? How many should I have - Bright? ›

There is no right number of credit cards — it depends on how many you can manage. Having multiple credit cards helps reduce your utilization rate and provides lenders with more information to better gauge your creditworthiness.

It's generally recommended that you have two to three credit card accounts at a time, in addition to other types of credit. Remember that your total available credit and your debt to credit ratio can impact your credit scores. If you have more than three credit cards, it may be hard to keep track of monthly payments.

RULE #3: PAY YOUR BILL OFF IN FULL EVERY MONTH

Sadly, many people do not follow this rule.

According to cardholder reports, Bank of America uses a 2/3/4 rule: You can only be approved for two new cards within a 30-day period, three cards within a 12-month period and four cards within a 24-month period.

The date at the end of the billing cycle is your payment due date. By making a credit card payment 15 days before your payment due date—and again three days before—you're able to reduce your balances and show a lower credit utilization ratio before your billing cycle ends.

Another potential downside of having a large number of cards is that it can make you look risky to lenders and lower your credit score. Even if you have them all paid off, the mere fact that you have a lot of open and available credit lines can make you look like a potential liability to the next lender.

Key takeaways: There isn't a set number of credit cards you should have, but having less than five credit accounts total can make it more difficult for scoring models to issue you a score and make you less attractive to lenders.

If you use the 15 and 3 credit card payment method, you would make one payment (for around $1,500) 15 days before your statement is due. Then, three days before your due date, you would make an additional payment to pay off the remaining $1,500 in purchases.

The golden rule of credit card use is to pay your balances in full each month. “My best advice is to use a credit card like a debit card — paying in full to avoid interest but taking advantage of credit cards' superior rewards programs and buyer protections,” says Rossman.

Two Credit Cards Every 90 days

There are conflicting reports on how charge cards are counted in this two-card limit. To be safe, assume Amex will limit approving you for no more than two total cards, including charge cards, every 90 days.

What's the best day to pay a credit card? ›

With the 15/3 rule, you make two payments each statement period. You pay half the credit card balance 15 days before the due date and the second half three days before the due date. This method ensures that your credit utilization ratio stays lower over the duration of the statement period.

Several factors can make a good card combination, but most simply, a good pair is one in which both cards earn the same rewards but have different bonus categories. This way, you'll be able to maximize your earnings across a wider range of purchases than you would with just one card.

There is no right number of credit cards — it depends on how many you can manage. Having multiple credit cards helps reduce your utilization rate and provides lenders with more information to better gauge your creditworthiness.

You make the first payment 15 days before your payment due date and the second about three days before your due date. But this “hack” doesn't hold a lot of weight, says Natalia Brown, chief client operations officer at National Debt Relief, a company that helps consumers get out of debt.

However, multiple accounts may be difficult to track, resulting in missed payments that lower your credit score. You must decide what you can manage and what will make you appear most desirable. Having too many cards with a zero balance will not improve your credit score. In fact, it can actually hurt it.

Too many credit cards for most people could be six or more, given that the average American has a total of five credit cards. Everyone should have at least one credit card for credit-building purposes, even if they don't use it to make purchases, but the exact number of cards you should have differs by person.

If you typically carry a balance on your credit card from one month to the next, then making multiple payments during each billing cycle can reduce your interest charges overall. That's because interest accrues based on your average daily balance during the billing period.

Making all your payments on time is the most important factor in credit scores. Second, by making multiple payments, you are likely paying more than the minimum due, which means your balances will decrease faster. Keeping your credit card balances low will result in a low utilization rate, which is good for your score.

Paying your balance more than once per month makes it more likely that you'll have a lower credit utilization rate when the bureaus receive your information. And paying multiple times can also help you keep track of your spending and cut back on any overspending before you fall into debt.

The latest amendment stipulates that the cardholder will be provided option to choose any date as the starting or closing date of the billing cycle at least once. Additionally, card-issuers may provide the option to modify the billing cycle through multiple channels, RBI's rules state.