Experian’s State of Credit survey report revealed that an average American holds six credit cards, split between emergencies and retail store cards. How many credit cards should you have if there are five too many?
There is no adequate number of credit cards to carry with you (or store in your house). You need to watch out for your credit history and specific financial demands, which means that instead of concentrating on what number of open card accounts you should have (or might need), think about the effect your present cards are having on your overall credit score and whether or not they are assisting you in achieving your financial targets.

Financial goals and credit cards

Your perfect credit card mix will depend on your unique demands, financial objectives, and credit-building stage.

Credit history and score

When it comes to your credit history and score, a secured card is the best option if:

-you have a young credit history (you just started)
-you aim to rebuild your credit
A secured card requires up-front cash payment. The implication is that your card issuer benefits from the collateral in case of a defaulted payment. Also, your cash deposit is determined by your credit limit. All three credit bureaus receive a regular report of your payment history. It is thus crucial to keep up with your payments and maintain a neat record to attain a higher credit score.

Rewards earnings

It is always nice to get some reward earnings on your card. Reward programs tend to vary among credit card providers. Some cards may offer travel points, while others provide cashback. While you may opt to have different cards to benefit from such programs, retaining a healthy credit score is still important. Thus, you should only apply for credit when needed and can manage it.

Becoming a homeowner or buying a car

Major financial undertakings like purchasing a home can affect recent credit card applications. It is because once you apply for credit, inquiries cause your credit score to lower momentarily. For this reason, the Consumer Financial Protection Bureau cautions against submitting new credit applications before obtaining a new mortgage, refinancing, or taking out a sizeable loan of any kind.
Additionally, using your current credit cards to raise your credit score is your best option if you want better interest rates and terms on a new mortgage or auto loan. It entails keeping your balances and credit utilization as low as possible while making your payments on time.

Debt management

Huge debts can prove an obstacle if you want to increase your available credit. There are better, wiser solutions. An example, consider creating a budget and regaining control of your finances by consolidating your debt with a balance transfer private loan before submitting another online credit card application.

Three ways credit cards impact your credit score

It’s essential to handle your credit cards responsibly to establish and sustain a strong credit record and rating. Here are some significant ways that using or abusing credit cards might influence your score:

Payment history

Your payment record largely influences your score, which accounts for 35% of your FICO score. Your payment history, which is the formal record of how you have historically repaid debts, demonstrates your potential dependability as a borrower to prospective lenders.
It is in your best interest to maintain a good payment history. One way is to settle your invoices in time. Credit ratings can take a nose dive if you miss a date. Establishing automated installments and invoice notifications will assist you in remembering when certain payments are due if you are already having trouble keeping up with several credit card payments.

Credit utilization

Credit usage is the ratio of your available credit to your loaned credit. To maintain a good score, it should be below 30%. Distributing monthly expenses across cards is a tricky strategy to keep your utilization low as you may max out your cards.

Credit history

More extended credit history is healthy for your rating. It would be best if you thus considered keeping older accounts open.
Here are summarized tell-tale signs that you have too many credit cards:
-Spending above your monthly budget
-Difficulty making payments on time
-Refusals for new card offers
What to do if you have too many cards
Make decisions based on your financial goals.